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This Bargain Is Overpriced

Tue, Mar 31, 2009 | by Jonas

3G, AT&T, Carriers, Verizon

This Bargain Is Overpriced

It is always interesting to see what tries to get passed off as low priced in a down economy.  A decade ago, computers were more expensive, as was internet access.  Back then, folks were willing to pay over $20 monthly for super slow dialup access.  If you’ve ever tried to surf the internet at 56k, you will attest to how lackluster it is.  At any rate, a few short years ago, Microsoft had the plan to sell a subsidized computer that made up for it with highly overinflated internet access.

Today, this is being likened to the subsidized $99 netbook. As the phone carriers are already used to overcharging for the handsets, and the subscriptions to their wireless 3G access could be growing faster, why not use a cute netbook to sweeten the deal?

I see two possible scenarios where this works, as objectively it is not a good deal due to the expensive access.  However, for the user that was planning on buying a netbook anyway, along with telco access, this can be a small savings.  The other scenario is if the carriers integrate in the wireless dongle, which will make the devices sleeker, and free up a USB port in these netbooks that have at most, three.

In the meantime, I don’t see any great value here, and think the $60 monthly fee that the carriers are charging for their access as too dear for most of us in this economy.

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