In a March post, I used slow sales of the Nexus One as an example of a disconnect between actual consumer behavior and the arguments of “consumer groups” in Washington. I noted that these consumer groups advocate against subsidized handsets subject to early termination fees based on their belief that consumers would be better off paying full price for handsets without an early termination fee. And I noted that Google’s attempt to prove the viability of a market for full-price handsets sans termination fee through direct sales of its Nexus One wasn’t faring very well. Google has now conceded the point. Read the rest of this entry »
Posts Tagged ‘ early termination fees ’
Surprise! Consumers Don’t Want to Purchase the Nexus One at Full Price
Consumer groups in Washington have long decried the wireless industry practice of offering consumers subsidized handsets in exchange for term contracts subject to early termination fees. These consumer groups believe that consumers would be better off paying full price for handsets without an early termination fee. But how do consumers really feel about this issue when they are given a chance to vote with their wallets? It turns out they opt for subsidized handsets with early termination fees. Read the rest of this entry »
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early termination fees