First 3G Netbook on 2 year cellular contract: $100 for the machine, $1,440 for the plan
Acer's Aspire One, a $300 netbook, will be available with an integrated 3G modem for $100, if you agree to a 2-year cellular plan.
Let's assume that this Radioshack ad isn't fake. The deal is a bad one. Something that retails cheaper than fancy smartphones to begin with retains much its price even when you agree to a service plan that will cost you $1,440 plus fees and taxes.
The ad claims the Aspire One is $500 without a cellular plan. At first, I thought this was standard "recommended retail price" waffle until I remembered that the cellular industry has manufacturers charge artificially high prices for "unlocked" devices. Perhaps if netbooks are suborned to a contract-driven sales model, we will end up paying that much for them if we opt out.
I prefer the idea of a cellular pocket hotspot, with its own battery, that I can use with any computer I happen to have with me.
AT&T and Radio Shack to offer $100 Acer Aspire One? [Lilliputing]
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The problem is usually that people living in the United States and elsewhere who don't understand how GSM was supposed to work, both don't like paying for things up front, and don't comprehend how much increases in monthly spending add up over time. (c.f. credit cards)
Higher monthly costs and multi-year contracts are why mobile phone service providers can afford to subsidize $700 phones for "free" or for only $100 when you sign up. If customers in aggregate weren't foolish, they'd pay the $700 up front for their iPhone or BlackBerry, and only agree to about $30/month conditionally from service providers. The whole point of SIM cards was to make service providers compete month to month for your money. (But this tacitly assumed people would afford to buy the phone hardware themselves; instead people got the stupid idea that phones should be free.)
I used to joke about how this was stupid in the same way as expecting your ISP to subsidize your computer for you. Now it seems that's actually happening, since netbooks cost just as much as smartphones.
Then again, look at how many people lease cars rather than purchasing them outright.
"I prefer the idea of a cellular pocket hotspot"
if you have a 3g & wifi enabled smartphone then WMWifiRouter could be what you want
if you dont fancy buying a commercial product then the hacky first concepts can be found here
http://forum.xda-developers.com/showthread.php?t=357152
The UK mocos (that's an appalling term and I will never use it again) have been doing these deals for a year or so now, offering a free laptop with a 3G dongle at around £30 a month on a 18 or 24 month contract, and pretty started offering the Asus Eee when it became available. Vodafone UK offer the Dell Inspiron Mini 9 with inbuilt mobile broadband for £30 a month on a two year contract against £15 for a dongle, which makes the net cost of the deal *mumble mumble* £720 against a machine that costs £235 + VAT and shipping to to buy from Dell and another £360 if you get a dongle.
Interestingly enough, the pricing of the Freerunner phone, which of course is open, not bound to any provider and therefore not subsidised, has come out at £299, which is about the net price of a phone on an 18 month contract.
"Is there evidence supporting your claim?"
I've been told it in person by people who work at handset manufacturers.
Zuzu, the problem is that it's not a $700 phone provided for free or $100 with a contract. It's a $300 phone that you have to pay $700 for if you buy it outright. The only evidence I have is basic business economics and component cost breakdowns by the likes of iSupply.
But the way the market works currently, it doesn't make sense to pay $700 for the phone - especially as you'd get no discount on your service! I own my phone outright, got it from a friend, but pay the same rates as someone that got a subsidized phone.
Controlbroke: These people: http://www.joiku.com/ have software that does that all ready. It isn't free, or indeed free, but it's not expensive.