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'[OT]: prepaid phones for 20 UK pounds'
2000\10\04@171751 by Marc

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> In the UK they are being "given away" for GBP20-30 when you connect to a network.
> You buy the phone at your local supermarket with a prepaid card and off you go.
> The problem for the phone companies is the phone costs 5-10 times what they sell it for

According to your logic a phone costs them 100-300 UK pounds (160-260 EURO).  This
is not true.  Shop owners pay for a free low-end phone (similar to the ones that
providers typically pack with their prepaids) only 30% to 80% more than for a prepaid
pack, not 1000%.  And you can bet that a provider, who signs a contract for 300,000
phones with the manufacturer direct, gets better conditions than a shop owner who
buys around the corner.

Sure, the provider IS supporting the phone and he HAS a wish to see future business
with the customer, but your numbers are off by far.

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2000\10\04@203833 by Andy Howard

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Subject: Re: [OT]: prepaid phones for 20 UK pounds


> > In the UK they are being "given away" for GBP20-30 when you connect to a
network.
> > You buy the phone at your local supermarket with a prepaid card and off
you go.
> > The problem for the phone companies is the phone costs 5-10 times what
they sell it for
>
> According to your logic a phone costs them 100-300 UK pounds (160-260
EURO).  This
> is not true.  Shop owners pay for a free low-end phone (similar to the
ones that
> providers typically pack with their prepaids) only 30% to 80% more than
for a prepaid
> pack, not 1000%.  And you can bet that a provider, who signs a contract
for 300,000
> phones with the manufacturer direct, gets better conditions than a shop
owner who
> buys around the corner.
>
> Sure, the provider IS supporting the phone and he HAS a wish to see future
business
> with the customer, but your numbers are off by far.



I think you'd be surprised. If you want to buy a phone with no new contract,
e.g. to upgrade an existing phone, you'll pay a *lot* more thanthe original
phone cost.e.g. for a mid-range phone costing 70-80 UKP connected you would
typically pay 100 UKP more for the same phone with no contract.

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