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Todd Haselton on what this could mean for consumers and phone companies.
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Welcome back to on the -- at foxnews.com.
Live.
We -- -- cell phones with final -- Smartphone business is one of the biggest and quickest growing businesses obviously.
In the world right now but what if those subsidies.
On the Smartphones went away -- -- today's CNET editor of the fabulous tech website techno.
Buffalo dot com -- -- check out every day good to see Tom thanks for being here and other.
That -- subsidies well what are we talking here that would that that that.
Being the wireless carrier is.
Drop the price of them to get us into those contract so then they might get rid still stopped doing exactly so.
What happened was in -- to the top wireless carriers there Vodafone.
And another on Telefonica decided to get rid of subsidies for new customers but doesn't you'll customers can still paying but what do subsidy is as you -- and he was sort AT&T.
And you pay a 199 dollars to new -- Do you actually pay for that iPhone over the contract.
About eighteen months and you're 24 month contract and that's why if you want to leave AT&T safer horizon you pay 370 dollar terminations.
So if you're -- he went into the Apple Store a boy your boy tried and it's gonna cost you 399.
That -- going to buy with the contract and a T.
TNT it's one right exactly yeah right exactly so subsidies lowers the price of the phones and then you -- -- for what so what -- big they've done it in Spain a couple of the -- what are the odds that it will happen here.
I don't see happening here at all there's a couple reasons -- first say Verizon decide to get rid of subsidies altogether.
They'd be the only one selling 400 dollar iphones 500 dollar iphones so people would be like -- why am I gonna pay for them to go to AT&T or something else.
You can also always do that right you don't have to sign a contract you can go into Verizon Wireless and buy a phone without a contract.
Pay the full price you owe them nothing they don't pay anything when you -- you could switch whenever you want.
There's also prepaid options.
There's -- half dozen carriers MetroPCS Virgin Mobile consider where you actually already pay 299 dollars for.
The top of the line phone may be not the newest phone.
And you don't have a subsidy and you don't have a contract and that's attracted to a lot of people.
And the wireless carriers are -- popular enough for -- -- where he's right now with a weighted changing contracts AT&T particularly with the unlimited is suddenly not unlimited in terms of data and all of us for new customers right but.
What they found was that the you know someone 90% of customers were using more than two gigabytes of data -- -- -- -- so unlimited data wasn't really needed.
They -- to offer customers a thirty dollars for two gigabytes so.
Well it sounds like a big deal it's not a big a deal as it -- that was made out to be.
But I think we'll we'll see here is carriers have to increase prices in some places AT&T CEO said that recently.
And I think we'll we'll see is higher rates when you upgraded phone so with 35 dollars for an upgrade on top of the actual phone -- purchase.
And and the -- increased data crisis overall as we move on because they're having such demand -- -- hit on their networks.
People are using data everywhere now and they need to make sure they can roll that out -- provide the quality of service that they have.
-- you just -- back from a I've -- mentioned -- you'll instantly IC TIA wireless CTI why and that's one of the big ones right so there's two -- -- a year -- this -- focused more consumer products and they earlier when you're all right so what should we be looking forward to in terms of consumer product I think the biggest thing on the show floor was the galaxy S three from Samsung that's their new flagship they -- it in London on -- -- And that's gonna land on a variety of US carriers in the coming months they haven't announced carriers I expected on all four of the big -- so Verizon AT&T sprint T-Mobile.
Because they typically carried the other models in the past Verizon's get on the galaxy S two who they -- with the galaxy -- instead.
But it's a killer device -- one Samsung's best selling Smartphones galaxy S was -- just to us.
And I predict this one will be -- we always -- -- iPhone -- anything that is it is it good enough to be an iPhone killer you know I think.
I think.
They announced this phone ahead of the iphone's announcement on purpose of that anybody who's excited.
It's gonna buy this only comes out and then maybe those who don't -- gonna go -- the iPhone later so I don't think it's particularly I don't know I think.
IPhone users are very dedicated and other -- and I think they want the next thing that someone else -- -- -- You know I think it was -- -- -- sprint they're talking about their four GL to you roll out so they're gonna catch up with Verizon and AT&T now.
And they should have a couple markets have a couple already but public markets bigger markets by the end of the year mid points -- actually.
And they announced that -- -- have fifteen devices for this new network.
Including most of them are gonna be Smartphones which is awesome it's great for consumers as opposed to just data cards -- USB six.
Those variations -- -- were back -- this -- a lot of rumors going -- middle of the tech web sites the last few days of back it's more iPad itself and enjoy that and I gonna happen.
You know this sources that I saw talking about it are pretty legitimate sources so I think I think it's a very good possibility it'll happen especially.
And if it does definitely hugely popular 200 dollar to -- -- dollar price point we're talking about iPhone killers I think this would be an Amazon Kindle fire -- -- Interesting all right you talk hazel sin city and its it would -- buffalo don't come thanks very much indeed -- -- not go check out techno buffalo dot com.
But -- into the show will give you -- -- between Jews before you see we don't do that.
There is the website.
Techno buffalo dot com -- thanks very much for being -- I wanna get -- quickly.
