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Comment by jbellis | Hacker News Reader

So it turns out that carriers subsidize phones because ... customers like it that way?

Not quite. If the carriers would allow you to pay for the service minus the subsidies, then we would really find out whether people like the subsidies. The carriers won't allow that because they really like 2 year contracts.

Actually, Tmobile does allow you to pay for the service minus the subsidies. It's called their "Even More Plus" plan. You save a significant amount per month, plus no contract. It's an awesome deal, but I don't think a lot of American cell phone consumers have managed to understand yet just how much they're getting screwed on cell phone subsidies.

Yes, plans are cheaper without the contract. Unfortunately, not a lot of people know about this. I told my friends that they could save about $20 a month if you're not under contract and they were surprised.

In 2 years and $20 savings a month, it makes the price of the Nexus One reasonable.

The car industry doesn't have this, and people still take a loss on their cars so they can buy a new one when they get bored. People want a new cell phone every two years.

Yeah, I just got the Nexus One full price (it's coming today) and I'm planning to do just that. Over two years I will save money.

Same deal here. I got my N1 unlocked, and it's a pretty chunk of change up front, but it's less expensive over the period of time that I'd otherwise have a contract for.

Wow. I wasn't aware this existed. T-Mobile needs to advertise this because this is worth switching for. Now, I just need to wait out my ATT contract.

Seriously. Who expected people to pony up the extra $300 for the Nexus One (over the Droid) just for the privilege of being on T-Mobile's sub par network and no contract? Most people stick with a carrier for half a decade or so. Two year subsidies are not that onerous.

Bring the Nexus One to Verizon with the option of a carrier subsidy and we'll see how much of a flop it really is...

I agree. Also, if you happen to be an existing T-Mobile customer you get to pay a $100 loyalty penalty!

In my case it's a $300 loyalty penalty, as I'm on a flexpay plan.

Perhaps because we're paranoid techies that appreciate the fact that T-Mobile did not cooperate with the warrantless wiretapping of the NSA, unlike AT&T, Sprint, AND Verizon.

You'll end up paying a hell of a lot more than an extra $300 if you buy it subsidized.

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