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Comment by Xichekolas | Hacker News Reader

The fact that the cellular industry still has ETF policies and hardware lock-in is really sad. I mean, imagine if you had to buy your computer from your internet provider, and then it only worked with that provider. Switching from Comcast to Verizon would mean buying a new computer, and agreeing to some two year contract.

The fact that the iphone would cost $399 instead of $199 is not a valid argument in favor of the ETF lock-in. I'd rather actually own my hardware, instead of what basically amounts to leasing the hardware with a modest down-payment and a hefty penalty if you try and switch carriers or end service.

Just like with cars, some people may find it more advantageous to lease their hardware. Good for them, let them lease and make an ETF part of the agreement... but give us an option to 'buy the car' (or iphone).

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You already have that option with pretty much every phone except the iPhone. Every carrier will let you buy the hardware at an "unsubsidized" rate, and then get a contract with a higher monthly price, but no lock in. It's just that no one does it, because it is so much more costly.

Er, if you buy an unsubsidized phone you should get a lower-priced, non-contract plan. But you probably don't, which I guess is the point.

I was very frustrated when I bought a Nokia N82 so that I could have an unlocked GSM phone, only to find out that the only service that works in my area is AT&T anyways. But hey, I already bought my phone, I should just be able to get a non-contract plan, especially if I'm willing to pay the full (phone-subsidizing) price each month, right?

Nope. You can't get a normal monthly plan without signing up to at least a one-year contract. I even had to pay for the freaking sim card, not to speak of the activation fee. So I paid something like $500-550 for my phone, sim card, and activation fee, and I'm still in a one-year contract, all for the same monthly rate that I would be paying if I had gotten a plan that came with a free phone.

Something is wrong here.

Simple. Buy the iphone for $200, set aside $200 for the ETF. Your iphone is now $400. If you stay put for the two years, throw yourself a party or something.

$199 instead of $399 might be a valid argument, if you were poor and just wanted a phone to talk to people and didn't care about lock-in.

But cheap cell phones that just let you talk to people cost almost nothing now. They are literally $10 unsubsidized.

The $400 phones are for people that can afford to spend $400 on a phone.

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