| reply to jjgb10
Re: Capacity Problem Did you read the news item? It refers only to DSL service over copper. Not Fios, not voice services. And the low discounted prices they offered for DSL created more demand than they could handle. They can't add R/T's fast enough to satisfy the demand. They should raise DSL rates and stop the intro pkgs for DSL until they can deploy more infrastructure or rollout Fios in the affected areas.
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Reviews:
 ·Verizon FiOS
| said by fAcEtIOUs:.... They should raise DSL rates and stop the intro pkgs for DSL .... but that would play against the current meme of "robust competition" and "falling prices" for broadband access. They don't want to disrupt that meme until they get their mergers passed and can be sure network neutrality won't be legislated.
What you suggest they do is exactly what is supposed to happen in a free market: increased demand + limited supply = higher prices.
It's very telling, to me, that verizon is not doing that. |
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| If you have too much demand for something then your prices are too low.
If you do not have enough demand for something then your prices are too high.
That is true of every service and every product on the market regardless of whether it is a 3 cent piece of candy or a $200,000 sports car. |
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 kamm
join:2001-02-14
Brooklyn, NY | said by Skippy25:If you have too much demand for something then your prices are too low. If you do not have enough demand for something then your prices are too high. That is true of every service and every product on the market regardless of whether it is a 3 cent piece of candy or a $200,000 sports car. What a laughable idea, seriously - you haven't heard about something that selling like hotcake because it is reasonably priced?
Your recipe suggests not to invest more but curb up the prices - what a clueless idea...
This kind of outdated "profit-only" idiocy - in which your idea is originated - had been proven flase and stupid: if you charge less but have much bigger market penetration then you'll make more money and and lot less effected by churning rate (which will be also lower).
Of course, you have to make sure you don't offer more than you can serve - it's a gradual work, you have to be able to keep up with the pace... |
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1 edit | Did you not read the article? They're at capacity and can't increase market penetration. That's the problem and the poster is correct...they're at capacity because the product was 'too cheap' economically speaking. It's not rocket science, it's supply and demand. Verizon dropped the price and demand outstripped supply. Now Verizon is stuck in this market until they either raise prices or can provide increased supply. And both Verizon and consumers are screwed. Verizon is denying itself that additional revenue and new customers can't get Verizon service at any price. |
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| reply to fAcEtIOUs
Tkjunkmail, now don't go confusing them with facts. |
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| reply to fAcEtIOUs
Not talking about RT's either, there are very few in NYC if any at all. CO's are in close enough vicinity to most subscibers in NY, even queens. We're talking about CO equipment getting maxed out. |
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 roamer1sticking it out at you
join:2001-03-24
Atlanta, GA | said by ITALIAN926:Not talking about RT's either, there are very few in NYC if any at all. CO's are in close enough vicinity to most subscibers in NY, even queens. We're talking about CO equipment getting maxed out. RTs and ONUs getting maxed out is one thing (it's happened to me before here in BellSouth-land...I got stuck in "pending facilities" for seven months when an RT ran out of ports), but running out of CO ports is ridiculous.
-SC
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"it seems like all you ever buy is Abercrombie and cell phones" --a friend |
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Reviews:
·Verizon FiOS
| Actually its not ridiculous, those things take up a considerable amount of space. To add more, renovations have to be done and room must be made to add more equipment. The problem is, they need to keep space open for their FiOS equipment when they get it in that particular CO. |
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