cost of early termination
2007-09-17 07:18:26 · 5 answers · asked by onecd 1 in Consumer Electronics ➔ Cell Phones & Plans
because they are losing money...
2007-09-17 07:25:56 · answer #1 · answered by Jules 5 · 0⤊ 1⤋
The commitment contract is a guarantee on the cell phone company's part to get a stream of income from you in exchange for getting a discount on your phone. Sure, in the end the company makes money off of you, but that's because we, as consumers, like a deal and think it's a pain to pay $500 for a phone, unless you love Apples.
2007-09-17 14:26:00 · answer #2 · answered by CMass Stan 6 · 0⤊ 1⤋
Because the cell phone providers are huge greedy rich corporations and want to get every dime out of you they can. They also want to keep you as a customer so you'll keep buying more phones and accessories and giving them even more money... so they'll penalize you if you dare leave them. The higher the termination cost... the less chance you'll leave, even if their service and coverage sux
2007-09-17 14:27:17 · answer #3 · answered by Anonymous · 0⤊ 2⤋
because if it was cheap the turn over rate would be so high that the cell carriers would have to charge more for their plans a phones, and thus wouldnt have many customers ...
2007-09-17 14:30:44 · answer #4 · answered by the drizzle is a chick! 5 · 0⤊ 1⤋
because it takes almost two years to make back the money for the cell provider. they gave you a free phone remember that is why they pentalty is so harsh.
2007-09-17 14:53:21 · answer #5 · answered by Michael M 7 · 0⤊ 1⤋