This year we can expect some major changes in the wireless landscape. FCC Chairman Tom Wheeler is taking a very pro-consumer approach to his role in the Wireless Industry. He’s championed the movement to get carriers to unlock phones and make them easier for the customer to take them to another carrier when their contract is up.
The United States is one of only a few countries remaining where the wireless carriers and not the manufacturers, control the customer. They do this by locking customers into long contracts with subsidies to offset the purchase price of a new wireless phone. Call it basic American consumerism but customers are drawn to the best deal that they can get, and for the past two decades the wireless carriers have been able to create the best deals with wireless subsidies.
The problem that Wheeler is trying to combat is the fact that until now, customers didn’t realize that they could just leave a carrier at the end of their contract and should be able to take that phone with them, after all the end of contract meant the phone or device was paid in full.
Manufacturers are trying to be as proactive in these times as possible. Call it a consequence or a compliment of Motorola’s purchase by Google, but they are leading the way by offering lower cost smartphones that have comparable features to ones that cost much more.
Take their Motorola G Android device.
The Motorola G went on sale in November for under $200 off contract making it the most affordable high spec Android device on the market. SlashGear suggests that Motorola only sees a 5% operating profit on the Moto G where a manufacturer like Samsung would see a 20% operating profit off a similarly specced device.
While Motorola is now owned by one of the most powerful and profitable companies in the world, the Moto G could be a signaling issue for what’s to expect this year. If Motorola and Google prove profitable with a low cost, off contract smartphone, other manufacturers may follow suit.
Now though, as we enter the new Year, the Los Angeles Times is reporting that the Moto G is now just $99 off contract at Best Buy locations.
“The phone is currently landing in stores and is available for sale as soon as it arrives,” Best Buy spokesman Jonathan Sandler told The Times.
Head to your local Best Buy and pick one up now.