Of more than 450 poll responses, 53 percent indicated they would only enter a mobile phone agreement if the handset is free.
Despite recent shake-ups in the mobile phone industry, popular manufacturers of handsets, Nokia and Motorola, were unanimous in their lack of surprise.
Diane Cummins, public relations manager for Motorola Australia, told ZDNet, the company had "never researched the question" of how much consumers are prepared to pay for mobile phones, as the vast majority of consumers pay for their handset through usage plans offered by mobile service providers.
Corporate communications manager for Nokia Australia, Anthony Wilson, echoed those remarks, saying "consumers do perceive value in mobile phones by comparing features that each model offers, but that it is only reflected in the price they are prepared to pay for service package".
Tim Scott, public affairs manager for Telstra On-Air, told ZDNet that there was no way to determine how much of the cost of a mobile phone is subsidised by the carrier before the cost of the phone is transferred to the consumer via a service plan.
He said mobile phone subsidies "vary greatly according to the plan and the handset, and we don't reveal that information."
Of the remaining respondents, few were willing to meet the steep price curve set out by mobile phone manufacturers. Twenty-nine per cent of respondents indicated they are prepared to pay AU$100-300 for a new phone and 10 percent felt that cost was not an option as long as the phone has good functionality.
However only 6.4 percent said they would be prepared to pay AU$300-600 - the full cost of a high-end handset.



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