Wireless handset insurance serves legitimate need

To the Editor,

Ms. Ford, I read your opinion piece in the Oct. 17 issue of RCR Wireless News and think you missed the mark on why consumers should purchase wireless insurance/handset protection.

You sited a formula of a consumer buying a phone for $50 but paying $60 in premium over 12 months. The thing you forgot to include in that formula is that here in the U.S., nearly all carriers subsidize the handset in exchange for a contract. As a carrier, I am trying to dispel the attitude of “It’s a free phone, why do I need insurance?” The truth is that a “$50 phone” or “free phone” that a consumer bought today (with contract) will be around $150 if they come back tomorrow and need to replace it after they dropped it in the lake.

Nic Beining

Cellcom