[Gllug] [OT] Unlocking Mobile Phone

[Mike Brodbelt]

On Fri, 2004-12-10 at 10:30 +0000, Tethys wrote:
> Mike Brodbelt writes:
> 
> >Whatever people feel about mobile phone operators, buying a  brand new
> >phone for a tenner or similar on contract, then immediately unlocking it
> >and using it on another network (usually pay as you go) is a case of
> >screwing the phone company out of the cost of the handset.
> 
> How so? Whether you've unlocked the phone and choose to use it with
> another operator or not, you've still signed a legally binding 12 month
> contract with your original operator, and still have to pay them each
> month. How are you screwing them out of the cost of the handset?

My impression is that their cost recovery model assumes an average
number of calls. If you switch operator inside your contract period by
unlocking the phone, you pay only line rental, which may not be
sufficient for them to recover handset costs.

I'm not really defending the phone companies here - they definitely
provide overpriced services much of the time. They also do astoundingly
stupid things like paying the Government 22 billion for 3G licenses,
then offer only entirely useless services over 3G. In the specific
instance of phone unlocking though, I do think it's reasonable behavious
for them to lock a heavily subsisidised handset to their network for a
limited period.

Mike.

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