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FCC votes to subsidize broadband internet for low-income households
Last month, the Federal Communications Commission announced plans to subsidize broadband internet service for low-income households. Today, the commission voted on the matter, approving the addition of internet subsidies to the Lifeline program that already offers both phone and prepaid wireless. Less than half of homes that make less than $25,000 have internet access, and today's vote offers help and provides steps to oversee the process, too. For example, service providers will no longer verify eligibility. That task will be given to a third-party instead. The vote also set the subsidy rate at $9.25 per month for both internet and phone service. Where does that money come from? Fees paid by service providers that are listed on customers' monthly bills. The FCC is looking to ensure not only the program's efficiency, but cut down on fraud and establish a set budget as well. [Image credit: Pete Marovich/Bloomberg via Getty Images]
Oculus dreams of offering a free, subsidized Rift
The Oculus Rift being offered as a free product is just one "fantasy idea" posited by Oculus CEO Brendan Iribe. "We have all kinds of fantasy ideas," Iribe told Edge at last week's Develop conference in Brighton. Though the company is set on a $300 price for the virtual-reality headset at the moment, there is "potential that it could get much less expensive with a few different relationships and strategies." Iribe also said, "You can imagine if Microsoft and Sony can go out and subsidize consoles because there's enough money to be made on software and other areas, then there's the potential that this, in partnership, could get subsidized." He stressed caution, however, since Oculus isn't "there yet," and the company is constantly thinking about how it can offer the Oculus Rift free of charge. "You want everybody to play it and the cheaper it is, the more people are going to go out and buy it. Today it's a $300 dev kit but we're thinking about how to get it out to as many people as possible." The Oculus Rift is currently only available as a $300 developer's kit. Oculus has yet to announce when the consumer version will hit retail.
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]
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?
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]
