Edward J. Markey, a Democratic representative from Massachusetts, has been raising hell over in the House on the iPhone’s early termination fee ($175), and the inability of iPhone users to switch to a network other than AT&T. For example, if you move to a place where AT&T service sucks (like where my sister goes to college) right after you buy an iPhone, you’re out of luck. You’re stuck with a $600 phone that either drops every other call or simply won’t function on your new service. The issue arose during a hearing that dealt with the states’ inability to control the pricing of wireless phone plans.

While I agree that it’s ridiculous that iPhones will not be available on networks other than AT&T until 2012, people are forgetting that, without a company like AT&T to share the production and infrastructure costs of the iPhone, those happy little devices wouldn’t be costing $500 and $600 - they’d set us back closer to $1000. Like video game consols, where companies like Nintendo lose money on every system they sell, hoping to make money off of the games, cell phones are sold for less than they’re worth, making the real money on expensive service plans.

I’m sure AT&T took an initial hit during the marketing and production stages of the iPhone. Part of the $600 price tag is an obligation to AT&T, without which we couldn’t buy iPhones for that ["low, low"?] price. Be grateful it’s as low as it is.

Via Washington Post

Isn’t AT&T with cingular now? Cingular service is the best up here…

Haha, sorry - slip of the tounge.

Correction: AT&T works wonderfully at Mount Holyoke, my mistake.

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