True but isn’t that an artificial differentiation? That’s like saying that I’m loyal to my local energy company because I send them a check each month. I don’t have much choice if I want power for my home. I’d like to see wireless companies differentiate themselves based on coverage and service. Wow! That’s a concept. In fact, I’d prefer to pay a non-subsidized rate on a handset if the wireless company needed to work everyday to keep my business.

Stacey, you continue to amaze me with your ignorance. Om should let you out of that bastion of liberalism called California every once in awhile and you might get a clue. Been available up here for close to 18 months now…

I am not sure you are aware or if this has been already mentioned, but here In France Orange lost the exclusivity of the iPhone distribution. Soon the 2 other main carrier here in France will be able to sell the iPhone.

I think it is good for the french market and customer that wants an iPhone but don’t wan’t to join the Orange Network for any reason. Competition will probably bring the user more services, better prices, don’t you agree?

K.

Sure Om and I don’t get the iPhone, but we have access to other phones that perform many of the same functions. There’s always a iPod Touch ( both Om and I have one) for those who chose to go with another network.

Said differently, exclusivity is a good way for carriers to NOT differentiate their networks and reduce capex.

the main reason that customers see carriers as indistinguishable is that the carriers don’t have to compete on service quality or price – AT&T has no reason to lower its prices (my service bill, with minimal voice, the iPhone data charge, and text messages, is nearly $100/month) or to improve the quality of its service because it’s instead winning customers over who want the iPhone. if you take away that “market differentiation” factor, the service provider decision will be made on the basis of price and the experience of friends and family with service quality, reliability, and customer service – i.e. the things that wireless providers should be competing over.

i suggest you read through the comments that Free Press filed – they make that point pretty clearly.

The issue is not whether carriers do or don’t bundle together various bits of the solution; the issue is transparency and choice. Meaning, I should at least have the option of buying an unlocked iPhone and using it with whatever carrier and whatever service plan I want. If a user wants a cheaper, subsidized device and a player offers that option, let them have it. But users should also have the option to buy an unsubsidized device and a monthly service plan that doesn’t lock them into anything.

This is all technologically doable, and everyone knows that. Go into any Carphone Warehouse in the UK and you can buy a pay-as-you go SIM card from multiple carriers, then purchase an unlocked phone to drop it into. Are there carrier deals offering subsidized devices there as well? Sure, but the consumer gets a choice in their purchasing decision. Do they pay more for their device? Yes, but they aren’t locked in to a contract. Many folks are willing to pay for that freedom.

But the industry players here in the US won’t do this because they will lose margin. As is often the case, it will be consumer advocate groups and the government that will have to come to the aid of consumers to give them greater choice and ultimately better value. The market doesn’t always look out for the consumer. Case in point: the banking industry’s recent misadventures reeking havoc on folks savings and 401(k) accounts.

Stacey: The iPhone ATT combo is bad for consumers because in a way it reduces choice. Om himself, loves the iPhone but hates the ATT service and coverage … I had to shift to ATT because of the iPhone. I would love to have stayed with my old carrier because the rates I got were awesome and coverage better than ATT… This exclusive phone deal sucks because it reduces my choice of carrier …

Also there really is no magic that ties a phone to a carrier … The iPhone runs fine unlocked on TMobile and many many carriers worldwide … So any “experience” arguments ARE fake…

I can see the benefit of exclusives for marketing purposes. But having a perrenial exclusive hurts consumers in the long run and is a slippery slope to go down …