SIM cards for Freerunner (was Free Runner price vs iphone 3G price)

Kevin Dean kevin at
Thu Jun 12 04:19:12 CEST 2008

On Wed, Jun 11, 2008 at 7:35 PM, Joe Pfeiffer <joseph at> wrote:
> Because the price of the "free" phone is bundled into the price of the
> contract.

I don't think so. The only thing that changes in the deal is the
profit margin of the company. The costs of the mobile carrier also
indirectly include the costs of electricity but if I said "I'm not
buying electricity from you so I shouldn't pay the mark up from
electricity" I would just sound really really stupid. I'm well aware
that the mobile providers pays for the phone and as a cost of doing
business, charges more for their products.

>  If I don't get a phone, I shouldn't have to pay for one.

Walk into T-Mobile or AT&T and  buy a phone and sign up for a
contract. Write down how much you pay. Walk out, put that phone in
your car and walk back into the store and sign up for the same
contract without a phone. Write THAT price down. Compare and you'll
see they're the same.

You're not arguing you shouldn't have to pay for a phone, you're
arguing that you should be allowed to dictate the level of profit
someone else's company is able to make on transactions.

> Not quite -- you're also committed to pay the inflated price long
> enough to pay for the phone,

And as long as that company pays taxes. And as long as that company
advertises. And as long as that company complies with minimum wage

I am aware that when a company spends money, in order to be profitable
they will reclaim those costs they will increase the price of their
products. I have no problem with a company making profit. In fact, I
would strongly PERFER it because companies that provide me services
tend to vanish when they don't make money.

> or pay for the phone under the guise of
> an "early termination" fee.

You entered into the contract of your own free will. Entering into
that contract is merely claiming that your word has value. Why do you
complain about agreeing to something and then being held to that
agreement? The terms are stated up front, if you find them
disagreeable negotiate the terms. If you can't, don't enter into the

The termination fee covers the loss to the company's profit margin
when you fail to complete your payment agreement. They do this so that
it's easier for customers to get cellular service. The cost of putting
up towers, hiring support staff, providing them with bathrooms,
purchasing computers, hiring programmers and engineers and all of that
is not small. To recoup that cost, they need to make a certain amount
of money. Putting a phone in the hands of people who don't have phones
ALSO costs money, and they need to ensure that if that customer fails
to generate profit for them, they will not face a loss from doing
business with that customer.

> _______________________________________________
> Openmoko community mailing list
> community at

More information about the community mailing list