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UK aims to improve access to technology, internet with £98 Linux PCs
Remember when the UK started distributing free laptops to poor schoolchildren in order to encourage them to get online? Well, a new, more frugal government is now in charge, and while the original scheme has been scrapped, today we're hearing of alternative plans to help economically disadvantaged people leap onto the worldwide surfer's web. The coalition government intends to offer £98 ($156) computers -- which include an LCD monitor, keyboard, mouse, warranty, and a dedicated helpline -- paired with subsidized £9 ($14) per month internet connections in its effort to show that the web doesn't have to seem (or be) unaffordable. The cheapest machines will be refurbished units running open-source Linux distros, meaning that if this Race Online 2012 trial turns out well, we could see a whole new group of Linux loyalists rising up. The more the merrier!
UK telecoms Three, Orange and T-Mobile launch subsidized iPad plans
Following up on the announcement made a few weeks ago, UK telecom providers Three, Orange and T-Mobile formally launched their iPad subsidies today. Those of us in the United States are used to having our cellphone prices subsidized by signing contracts, but so far we don't have anyone subsidizing our iPad purchases as well. The discount plan offers shoppers who enter a two-year service contract money off the price of a new iPad, bringing the price of the 16GB with Wi-Fi + 3G unit down to £199 (plus VAT - Edited: VAT is included thanks @ crisss1205) or the equivalent of US $313 -- a steep discount from the normal price of $629.00 in the U.S.. While the price of the iPad is the same for each provider after the subsidy, each offers their own monthly plan and cost: Three offers 15GB of data per month for £25/month (US $39), with no Wi-Fi coverage included. Orange offers 1GB of data at peak times and 1GB between midnight and 4pm for between £25 and £27. This includes 3GB of Wi-Fi usage using BT Openzone. T-Mobile offers the same data limits as Orange but without any Wi-Fi coverage for between £25 and £27. Three is definitely offering the best plan for users, especially when compared to the caps that AT&T has in place on their 3G plans at 50MB/month for $14.99 or 2GB/month for $25. Granted there are no contracts in place with AT&T, but iPad buyers in the UK who don't mind signing a contract are seemingly getting a pretty good deal with these new subsidies. Of course, if you were willing to move to Japan you could get an iPad 3G for free after signing a contract, but it would probably be more cost-effective to stay right where you are and pay full price near home.
iPad 3G available for free in Japan with two-year Softbank contract
Japan's Softbank Mobile is subsidizing the entire cost of a 16GB iPad 3G (translated link) for those willing to sign a contract for two years of monthly data plan payments. By agreeing to pay Softbank $56 (¥4,725) a month at least 24 times, customers get the iPad for free -- sort of. The way the plan is structured, the monthly payments are actually split evenly between the unlimited data plan and payments on the device. One of the many upsides to buying an iPad is that, even if you opt for the 3G version, you don't have to get locked into another two-year AT&T contract. On the other hand, that means you'll have to pay Apple's full list price to get one. Japanese customers now have an option to get a 16GB iPad 3G for no up front cost, but they'll give up a lot of freedom by doing so. [via Engadget]
Taiwan subsidizes development for Delta's glasses-free 3D projector and AUO's flexible AMOLED
You know the Taiwanese are pretty serious about technology when you see them liberally throwing cash at factories. According to DigiTimes, Delta Electronics and AUO are two recent winners for a shared NT$600 million (US$19.6 million) government grant, which will cover 45% of each of their research expenditure -- so probably not a fifty-fifty split. If all goes well, Delta will bring out glasses-free, wide-angle 3D projection that's enabled by using multiple high-res LED beamers; whereas AUO will take advantage of the recent AMOLED shortage and develop high-res flexible panels. Nice going, folks, just don't let us catch you all partying on the factory floor with that money.
Orange UK prices 3G iPad at £199 on two-year contract, taking pre-orders today
Want an iPad but can't countenance the associated outlay of cash up front? Orange is making that pill easier to swallow today with the revelation of its contract-tied pricing for Apple's tablet in the UK. Pre-orders are about to start today for obtaining the 3G-connected iPad at prices of £199 ($312) for the 16GB version, £249 ($391) for its 32GB sibling, or £349 ($626) for the one equipped with 64GB of storage. This is all subject to you signing up for a two-year plan costing £27 ($42) a month that'll give you 1GB of anytime data, 1GB of off-peak data (judged by Orange to be between midnight and 4pm), and 3GB of BT Openzone WiFi access for each twelfth of the year. The expectation is that Orange's new best bud, T-Mobile, will be offering similar pricing shortly, leaving us to wonder what Vodafone and O2 might be cooking up. The day of the subsidized tablet might be with us sooner than we thought. [Thanks, Jon] P.S. - We've just spotted that Three, the UK's 3G-only network, is also planning to sell the iPad "in the coming months." Pricing and data allowances, however, have yet to be revealed.
UK iPad subsidy plan to be announced later today
Everything Everywhere is the UK's largest mobile network operator, and it owns the UK telecom brands Orange UK and T-Mobile UK. According to Marketing Week, the two telecom brands are expected to issue a formal announcement on November 22 that they will sell the iPad at their dual-branded stores. Not only will the Everything Everywhere stores be carrying the iPad, but they will also offer a discount plan to consumers who enter a service contract with their telecom brands. The discount plan to Orange and T-Mobile subscribers could mean up to 70 percent off of the iPad price tag if the subscriber signs an 18 month or 2 year contract. This is pretty big news, since this is the first widescale iPad subsidy being offered to consumers. Hopefully, Everything Everywhere is merely leading the charge, and we'll soon see iPad subsidies from other mobile carriers. No further details have been offered yet, although we should expect more contract details with the formal announcement soon.
Orange and T-Mobile set to offer 3G iPad on contract in UK, £200 price rumored
Orange has just dropped a rather enigmatic note in our inbox letting us know that it plans to offer Apple's 3G iPad on "one of [its] great new plans" in the UK, resulting in what the company promises will be "more affordable prices." Current rumors making the rounds place that expenditure at the £200 ($320) mark, should you be willing to commit to a two-year data plan to go with your 10-inch tablet. It's also expected that Orange's new dance partner, T-Mobile, will be making a similar announcement soon, complete with a matching price. We'll keep digging until we know for sure. Full PR after the break. Update: Sure enough, T-Mobile is now also listing the iPad as "coming soon." Thanks, Dilwar!
FT subsidizes employee iPads, wants them to keep up with the times
You know tablets have officially become a mainstream craze when even the reserved, serious types over at the Financial Times start splashing subsidies around to stimulate their ownership. We've just heard that a $480 purse of gold coins will be extended to any FT workers who decide to purchase an iPad or another tablet between now and the end of June 2011, reportedly in an effort to help the paper's staff become "expert and experienced in using them." We already knew the FT, which happens to have its own iPad and Galaxy Tab apps, saw slate devices as an important piece of the puzzle that is our future, and this move cements that attitude in place. Paper's dead, long live electronics-filled plastic.
TiVo Premiere now free on contract for $20 monthly, as TiVo introduces (and enforces) tiered subsidies
Well, it seems we finally know why TiVo was waxing poetic about software in recent months -- it's the way the company primarily plans to charge for its DVR hardware from now on. Following a week-long experiment of free-on-contract DVRs conducted last month, TiVo's opening up subsidized and partially subsidized pricing tiers to the entire US for those willing to chain themselves to a pricier $20 monthly fee. You can now get a TiVo Premiere for $0 on a two-year contract or $100 with a one-year arrangement, or pick up a TiVo Premiere XL for $300 on a one-year deal -- the same price the regular old 45-hour TiVo Premiere cost originally. TiVo's also kept the original $12.95-a-month plans around in case you want to pay full price for your hardware, which would normally make better financial sense after about three years, if not for the fact that there are still lifetime subscriptions available for $400 if you're truly in it for the long haul. We're all for expanding our buying power in this arena, but there's one group of customers who are liable to get mighty pissed at the new arrangement -- the regular Joes and Janes headed to Best Buy right now to pick up a $99 TiVo Premiere "on sale." You see, retailers apparently didn't get the memo about the new tiered pricing and are advertising the arrangement as a $200 discount instead, which leaves TiVo's fine print the unenviable role of explaining that they're going to pony up $20 a month from now on. 2.1.2 When purchasing a TiVo Premiere box from a third party retailer at $99.99 (includes an instant $200 savings off MSRP) for the TiVo Premiere box or $299.99 (includes an instant $200 savings off MSRP) for the TiVo Premiere XL box, you may only subscribe to the TiVo Service on a monthly basis for $19.99 a month with a one (1) year commitment (renews monthly after one year). Choices, choices. [Thanks, Daniel and Chris R.]
Samsung Galaxy Tab costs €730 from Vodafone.de, €300 if bought with a two-year data plan
You can kind of tell we're growing ever closer to the Galaxy Tab's promised November 1 retail launch as prices for this slate just keep coming out of the woodwork, looking ever more solid with each passing day. Vodafone Germany is the latest to reveal the wallet damage Samsung's 7-inch Android tablet will demand, with a €730 ($1,017) levy for the 16GB version sans contract, or a €300 ($418) cost for those willing to commit to a two-year data plan at €35 a month. We'd advise against taking those direct currency conversions to heart, but the Tab's pricing here is €30 more than the 32GB iPad WiFi + 3G, making us scratch our heads as to how Samsung believes it'll manage to convince anyone to buy its smaller, less capacious alternative.
Editorial: the American phone subsidy model is a RAZR way of thinking in an iPhone world
The concept is simple enough -- pay more, get more. So it has gone (historically, anyway) with phone subsidies in this part of the world, a system that has served us admirably for well over a decade. It made sense, and although it was never spelled out at the customer service counter quite as clearly as any of us would've liked, it was fairly straightforward to understand: you bought a phone on a multi-dimensional sliding scale of attractiveness, functionality, and novelty. By and large, there was a pricing scale that matched up with it one-to-one. You understood that if you wanted a color external display, a megapixel camera, or MP3 playback, you'd pay a few more dollars, and you also understood that you could knock a couple hundred dollars off of that number by signing up to a two-year contract. In exchange for a guaranteed revenue stream, your carrier's willing to throw you a few bucks off a handset -- a square deal, all things considered. So why's the FCC in a tizzy, and how can we make it better?
Hutchison offers discounted iPad in Austria
Hutchison Austria is following in the wake of the iPhone and is offering a subsidized iPad to users willing to commit to a 2-year data contract, Engadget reports. When you sign up for a €29.90, 5GB monthly contract, you'll get a €333 markdown on the iPad -- which may or may not be all that much since we still don't know how much an iPad is going to cost overseas. Instead of built-in 3G service, a Huawei i-Mo 3G modem will be provided. It's not a bad idea, and we're likely to see more carriers jump on this particular bandwagon as the iPad gets closer to release. What I would love to see from carriers is a way to extend existing service for iPhone customers to those who want an iPad plus iPhone. AT&T already gets close to $100 a month from me for basic cell service, plus iPhone data and a text messaging plan. I wouldn't mind paying an additional $5-10 a month for my iPhone contract to cover an iPad as well. The thought of having to pay another $15 or $30 a month for extra 3G service to an iPad, on top of the charges already being paid for an iPhone, leaves a bitter taste in my mouth and if the decision is made to have an iPad join my family, I'm most likely sticking with Wi-Fi only.
Subsidized Nexus One pricing not available to existing T-Mobile customers
Remember when you ran out to buy a T-Mobile G1 right away when it was launched 14 months ago? Google apparently doesn't -- it's only extending the $179 subsidized price for the Nexus One to new T-Mobile customers, meaning existing customers are being told they have to pay the full sticker of $529 for the Snapdragon device. As you can imagine, that's got quite a few T-Mobile customers pretty angry -- especially since Google's systems aren't even allowing upgrade-eligible T-Mo subscribers to purchase at a discount, and there's no customer service line to call and complain. We're hoping this is just a glitch while Google takes its first steps into direct phone sales, but we'll keep an eye on the situation. [Thanks, Mike]
Sprint first to offer a 99-cent netbook, but is it worth it?
We knew we'd see cheap / free subsidized netbooks eventually, and here we are: Best Buy and Sprint are offering up a Compaq-branded HP Mini 110c for just 99 cents when you sign a two-year data contract. Yeah, it looks good on paper, especially since AT&T and Verizon will ding you $199 for the same machine, but we just don't think it's worth it: at $60 a month for service, you'll be spending $1,440 for two years of pain with that 1.6GHz Atom, 1GB of RAM and three-cell battery. We'd say you're way better off grabbing a 3G USB stick you can use with multiple machines, or, if you're feeling particularly baller, throwing down for a MiFi and kicking it mobile hotspot style -- it'll cost the same $60 a month from Sprint, but you'll be able to get five machines online at once. But that's just us -- any of you particularly hot for this almost-free netbook?[Via jkOnTheRun]
Counterpoint: AT&T isn't cheating iPhone 3G customers
In my youth, I sold cell phones for Verizon. It was not a rare occurrence to have a customer sign up for a new account and get their free phone, only to come back a week later and tell me they dropped it in a toilet and wanted another one. They were shocked when the phone they got for free just a few days before now cost them close to $200. To a lesser extent, the same thing is happening with iPhone 3G owners wishing to upgrade to the 3G S for the subsidized price. A year ago, 3G owners bought a $600 cell phone (assuming we're talking about the 8GB model) for just shy of $200. The 2-year contract guarantees that AT&T makes their $400 back over the length of your contract. So far, 3G owners are only about 1 year into their contract, so they've really only paid off about half of their subsidy to AT&T. Most carriers would stop there, and offer no additional incentives until you've come close to reaching the end of your contract. AT&T is being about as generous as they can be by offering 3G owners half of the subsidy after completing half of their contract. Once 3G owners have fulfilled a year of their contract, they can get the 3G S for the base price ($199) plus half the subsidy ($200) for a grand total of $399. Read on for some fun cell phone contract math.
Sony's VAIO P going for €599.95 with T-Mobile Germany data contract
Thinking of picking up a VAIO P for your left rear pocket? Do you call Deutschland home? In need a mobile data plan? If you've somehow managed to answer yes (or "ja," as it were) to all three of those inquiries, T-Mobile Germany has a deal for you. Sony's WWAN-packin' VAIO P -- which has seen itself subsidized in America on Verizon Wireless -- is currently being offered for just €599.95 (VAT included) with a web'n'walk Connect L data plan. For those too uninspired to search, that's a €400 discount from what it costs to buy outright over there. Tempting, nein?[Via Pocketables]
Rumor: Apple to sell subsidized notebooks in the UK?
This would be an interesting deal -- rumor has it (that crazy rumor always has something, doesn't it?) that Apple may start selling subsidized MacBooks in the UK, with O2 including the notebooks with their wireless plans. Quite a proposal -- the idea, of course, would be for O2 to pick up a subscription by offering a discount on the already (relatively) cheap $999 MacBook. This plan has been rumored for a long time with iPhones (and I still believe it'll happen eventually), but with mobile broadband subscriptions on the rise, O2 and other services might start giving kickbacks on notebooks, too.Of course, whatever discount you saved early on would cost you in the end with the continued cost of the broadband subscription. Which makes this deal as unlikely for people to buy into it as it does for Apple to agree. But you never know -- analysts especially are leading the call for cheaper and cheaper MacBooks, and a subsidy might be just the thing (even if it isn't actually popular with consumers) to push the MacBook down to around the $800 price where stockholders want it to be.
Making/Money: Economic Equilibrium is MIA
When I first started playing MMOs I was in college. I'd bounced from major to major but ultimately settled on Economics (from a starting point of Medieval and Renaissance Studies - how'd that happen?). Like other economists in games like EverQuest and Ultima Online, I was thrilled to find a lively economy and interested to apply classical economic models in the study of it. The most basic of these models is the typical supply and demand curve. Any economic model starts with price and quantity. The higher the price, the more suppliers want to sell but the less consumers want to buy. As the price decreases, more consumers are interested in purchasing, but fewer suppliers are able to produce profitably. In theory, there is a magical level in the middle where supply and demand meet. That is equilibrium (see graph). What I have since found, which is furiously debated by other economists in the field, is that the typical supply and demand curves do not fit well with the economies of most MMORPGs these days. Depending on the game, add-ons used, and availability of additional market data, there may be sort of invisible caps to the price, and thereby the quantities, of goods traded. Furthermore, auction house fees and vendor sales act much in the same way as taxes or subsidies in real world economies.
T-Mobile jumps on the bandwagon, throws the book at prepaid unlockers
Carriers like Tracfone and AT&T have set some serious precedents in the past couple years, sending warning shots over the bows of so-called prepaid phone traffickers who make pretty serious businesses out of buying prepaid phones in bulk, unlocking them (thereby nullifying the cash the carrier puts on the table to get the phone to market at a lower price), and reselling them to the highest bidders. T-Mobile USA has gotten on the action now, too, picking up a pair of permanent injunctions against Fone Xchange and ASPAC -- two of the biggest offenders in T-Mobile's eyes -- and a $6.5 million award for its troubles. Seems these guys won't take "no" for an answer, though, with T-Mobile also announcing that another gentleman violating a similar injunction awarded in Houston has been convicted of criminal contempt of court and is due to meet his steel-barred fate on October 10. So yeah, might want to settle down with those six-phone purchases from CVS there, bucko.
NTT DoCoMo posts 41% profit increase on reduced handset subsidies
Go 'head with your bad self, NTT DoCoMo. Party on down 'til six in the morning, because you just posted a quarterly profit increase of 41%. What's to thank for such a remarkable boost? According to a Bloomberg report, the outfit's decision to "reduce handset subsidies to customers" enabled it to bring in more cash despite the fact that sales fell 1.1% in the same quarter. President Ryuji Yamada proclaimed that the "acceptance of the monthly handset payment plan by our users helped bolster profits in the quarter," and he also highlighted a "considerable decline in the cancellation ratio." Still, some analysts are uncertain if the telecom company can maintain the growth, with Deutsche Bank AG's Kenji Nishimura stating that the "increase in profit was merely caused by the change in the accounting." Snap DoCoMo, are you just going to take that?[Via mocoNews, image courtesy of Flickr]
