TK Junk Mail
Go ahead, make my day
Premium
join:2002-03-03
Margate City, NJ
clubs:
 ·Comcast
| reply to KrK
Re: Tell me it isn't so
said by KrK  :So, Iprovo needs to *slightly* drop prices to match Utopia.... and then the problem will be solved. Sure. They can make up the money they lose on each customer by having more customers.
They will just lose money FASTER with lower prices, especially if price isn't their main problem.
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KrK
Heavy Artillery For The Little Guy
Premium
join:2000-01-17
Tulsa, OK
·Cox HSI
 ·AT&T Southwest
| Read it carefully. They aren't losing the money on each customer in service... they are losing money on customers they hook up and then leave a short time later because the equipment connection costs per home hooked up is $800. Which seems high to me.
The solution, and why they've brought in consultants, is to gain more customers and reduce churn. IE they need customers who like the service and stay with iProvo. They aren't losing money on each customer unless they leave before the connection costs have been absorbed.
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"Regulatory capitalism is when companies invest in lawyers, lobbyists, and politicians, instead of plant, people, and customer service." - former FCC Chairman William Kennard (A real FCC Chairman, unlike the current Corporate Spokesperson in the job!) |
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Capt Video
@mstarmetro.net
| reply to TK Junk Mail
iProvo does not compete with UTOPIA, and both are priced close. It's Comcast's 3 services for $99 and Qwest's "price for life" promotions that they compete with. Only no service provider has the money to buy media (TV, etc) like Comcast and Qwest do. The muni's spend nothing on marketing. They just own the network. |
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