February 19th, 2010, 05:18 PM
Join Date: Jan 2010
Location: Brooklyn, NY
Device(s): Nexus One
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Originally Posted by MariposaNegra17
I'm sorry if this has been posted elsewhere >.<
I am very confused about this whole buy the phone for $529.00 or get it for $180.00 with a 2 year contract...
Humor me a little here...If I buy the phone for $529.00:
Will i be able to have insurance? If so, how will I pay for it? Monthly?
Since I'm waiting for it to be on Verizon's network, let's just say that I buy the phone (for $529) for Verizon, because i bought the phone entirely, would I only be paying for data, or would I have to pay for a monthly bill even though I would not be on a contract?
So what's better, buying it with or without a contract?
I apologize for my ignorance on this subject, I am new to this kind of thing
Hypothetical for yet to be released Verizon N1 (and assuming they follow the same T-Mobile model)
Unsubsidized: You pay full price for the phone thus aren't required to enter into a service contract with Verizon. Instead you will be what is termed a "month-to-month" subscriber meaning you can cancel your service at any time without contractual penalty.
In order to use the N1 on Verizon unsubsidized, you will have to pay for a voice (calling minutes) plan and a data (web/internet) plan.
Subsidized: In exchange for the ability to purchase the phone at a discounted price, you are required to enter into a contract with Verizon (presumably 2 years). This contract will require that you maintain your service at what will likely be a pre-set minimum service plan at x$ per month for the length contract term. If you want to cancel within the contract term, you must pay Verizon an Early Termination Fee (or ETF).
On top of the Verizon ETF, you may be liable to Google for an ETF (they call it an "equipment recovery fee") (currently $150) if you cancel your Verizon service within the first 180 days of buying the N1 at the subsidized price. This is so Google can recover the cost of selling you the phone at the subsidized price.
There are a few considerations to take into account when making the choice to buy subsidized vs. unsubsidized -- especially for the Verizon version of the device. The current N1 model on T-Mobile supports worldwide GSM voice frequencies and most GSM 3G data frequencies except for AT&T (will only run on edge) in the US. This means I can use it on any provider that supports those frequencies by popping in the respective sim. There is still a big question with respect to the Verizon version of the device - will it be a dual CDMA (the network technology Verizon uses) AND GSM device (i.e. a "world phone") or will it be CDMA only? If the later proved to be true, there may be very little benefit to buying it unsubsidized given that you can't use it on any other network.
Ultimately you have to do the math when the pricing comes out. The right choice depends on a lot of factors that are personal to you.
Last edited by NexusMMM; February 19th, 2010 at 05:33 PM.