
Originally Posted by
cparke
Lifeline pays the carriers $0 for providing the phone or SIM card. All they get from Lifeline is $9.25/month for the service. Clearly, all these Lifeline carriers must be making a ton of money on tons of people who sign up but then almost never use the service. So much so that they even have to constantly remind everyone to use their device at least once a month in some way to avoid the plan from being cancelled out.
So, no, I don't think Lifeline program itself is the reason for this policy. Probably, it is rooted in the early Sprint business model where every MVNO was responsible for selling their own branded handsets, and activation of devices across business lines (even Sprint-branded onto a MVNO) was prohibited under the MVNO contract. Another thing, upon activating the SIM in the AW phone, I noticed the phone all by itself started self-installing "recommended apps", so I suspect the real money for AW is not even the Lifeline program, but rather phone sales, bloatware advertising, and spyware data collection sales. This would explain why when I cancelled the newly activated service today, the reps were neither surprised nor was there any disappointment, no effort to get me to stay, and in fact they don't even want the phone returned --- it was free and yours to keep it! Just like in the TV infomercial ads. The phone is also SIM network locked to AW, but I see no reason why I would want to ever use it anyway, so maybe I can give it away for just shipping cost to another Assurance Wireless customer who broke their screen or lost their phone or something (that would bite AW the most).
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