It's not really new in the US either. You can buy most phones unsubsidized. iPhone 3GS is $599 from AT&T with no service commitment for example. Same problem with incompatible 3G frequencies though. The big problem is US carriers charge you basically the same amount if you take the subsidy or not. The only flexibility you gain is no service contract but due to competing wireless standards and frequencies you're still very limited in carrier choice. Google is using the same business model as everyone else.
Yeah probably but more importantly you're functionally locked into AT&T if you want 3G and anyone spending $600 on a phone presumably wants 3G service. So you're stuck with AT&T or stuck with T-Mobile if you get an "unlocked" Nexsus One.
You can get prepaid if you don't have a service contract. It of course depends on your usage pattern whether it ends up being cheaper, but it's very common in Sweden.
Technically true, but almost all phones are acquired via subsidies anyway. If you BYO device you get no real cost reduction unless you want a very high end device on a very low end plan or some other end case.
The only segment where BYO phone is strong is in prepaid. You do actually save money by not being on a plan but this isn't the option most people go for. People don't see it as the "grown-up" option.
> Technically true, but almost all phones are acquired via subsidies anyway.
Again, yes, in the US. In some Asian countries, you can walk into any mall and there will be any number of stores selling new or used cellphones all of which are unlocked.
> People don't see it as the "grown up" option.
Again, this is limited to particular cultures. In some countries, prepaid is the norm, not the exception. People keep their numbers and switch phones as they move from one phone to the next, and buy only as much load as they need. (USD 0.20 good for 10 SMS messages)
Indeed. In India, most phones are available unlocked. Also: (1) SMS and voice calls are dirt cheap on most networks, (2) there are no arbitrary vendor lock-ins, (3) voice quality on most networks is very, very good and (4) there are many, many mobile carriers to choose from.
We still need number portability and affordable mobile Internet, though. Ah well.
EDIT: s/India/New Delhi. I'm not sure about the state of mobile networks in other parts of the country.
Europe is a collection of countries, so your millage will vary a lot from country to country.
But yes for instance in France it's like that: permanent exclusivity is illegal, though short temporary ones are allowed. Orange (illegal) exclusivity on the iPhone was broken in April 2009 and since then all operators are selling it.
Consequence : 2 million iPhones sold in 2009, more than 50% of the smartphone market shares, and 3G networks that have a hard time following the pace...
They might as well have one; they sell more than just phones, and some of their phones (e.g. N900) have not yet been adopted as subsidized models by U.S. carriers.
