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: Begging the Question

Peeve of the Year

By "Milbarge" and "Fitz-Hume"

Prof. Desai at the Co-Op has a perfectly ranty post about the cell phone business model. You know, the notion that you can't buy a new phone without starting a whole new contract and all. This kind of thing has kept me from giving lots of money to the phone companies over the years.

I know the theory is supposedly that they sell the phones at big discounts in order to rack up big profits from the service contracts. The old razors and blades model. But in my case, I would have bought a more advanced phone, and upgraded to the high-dollar service contract with internets and everything, if they had made this less annoying.

To me, this is like wanting to buy a new tv, but having to go to the cable company and get a new HBO subscription first. Surely someday they'll run out of truly "new" customers -- babies will be issued cell phones at birth; look for that iPhone app that will let you take your baby's footprint on the phone -- and they'll change this dumb business model.

Full post as published by Begging the Question on December 24, 2008 (boomark / email).