The marketing model for cel phone service

I believe that they do. I haven’t had a land line for quite some time but I remember there was an option to have a lower monthly bill and a charge for local calls. Also for home users there is not much competition for land line phones so there is not as much a need for marketing and different pitches to appeal to different people.

Cricket cell phone service sells all you can talk plans for $30 a month to $45 a month depending on weather or not you want roaming voice mail etc.

Does anyone know what the business model is for cel phone makers themselves? I always look questionably at the ‘retail’ price that I’m avoiding by signing a contract and getting a ‘discount.’ What’s the markup for a ‘retail’ priced cel phone? Do they make even close to a significant percentage of their income on ‘retail’ priced phones?

The manufacturing costs of a cell phone are relatively low compared to the retail price. However the markup is not that high either. What you’re paying for is basically the development cycle that allows manufacturers to bring a video phone with mp3 and 3d to market and then discontinue it in a year or two and come out with an even better (and completely different one).

Your ISP WILL cut off your website if bandwidth goes over the limit. Cell phone companies do the same with prepaid plans. Postpaid plans basically extend credit, and you pay at the end of the month.

At least some landline companies do. My landline telco offers unlimited local AND long distance calls for a flat $40 a month. Or I can pay per local call (unlimited minutes each local call), and a per minute rate for long distance calls in the US.

EFZ! and the development costs go well down the “food chain”: Specialized semiconductors, smaller ceramic filters, higher contrast/resolution displays, latest and greatest battery technology enabling longer talk time, and quicker recharge, etc.
Oh, yes, remember that somebody has to write and support all the software it takes to make all this stuff play ball.

While it gets taken for granted, A typical cell handset is about 5X more advanced than the handi-talkies police carry, yet sells for about the same price.

5X is probably very low. The software alone on my cell phone is probably more complex than your average police officer.

Do they require a credit check and a two year contract?