Free to roam

In a huge turnabout, Verizon is unbundling its service from a phone purchase. This makes total sense for Verizon, which has the best network; the pressure will force other competitors to follow suit, and on network strength, Verizon wins in most (not all) areas.

This is enormous news for the cell phone industry. I suspect we'll ultimately see little to no bundling, other than some sort of very basic freebie phone, which is all to the good. Consumers complaining that they won't get cheap phones aren't thinking things through; the phone company wouldn't give you the phone if they didn't expect to get it out of your hide in phone fees.

I suspect that this will put enormous pressure on Apple's sweetheart deal with Cingular, as customers begin thinking of a phone as something that doesn't necessarily come attached to a two-year contract.

Presented by

Megan McArdle is a columnist at Bloomberg View and a former senior editor at The Atlantic. Her new book is The Up Side of Down.

The Best 71-Second Animation You'll Watch Today

A rock monster tries to save a village from destruction.

Join the Discussion

After you comment, click Post. If you’re not already logged in you will be asked to log in or register.

blog comments powered by Disqus

Video

The Best 71-Second Animation You'll Watch Today

A rock monster tries to save a village from destruction.

Video

The Case for Napping at Work

Most Americans don't get enough sleep. More and more employers are trying to help address that.

Video

A Four-Dimensional Tour of Boston

In this groundbreaking video, time moves at multiple speeds within a single frame.

Video

Who Made Pop Music So Repetitive? You Did.

If pop music is too homogenous, that's because listeners want it that way.

Video

Stunning GoPro Footage of a Wildfire

In the field with America’s elite Native American firefighting crew

More in Business

Just In