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Forums » The True Bandwidth Cost Of SMS » It's the market, unfortunately
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SMS and "Ringtones" - A Civilization in Decline »
« What does cost have to do with price?  
MightyPez

join:2002-05-01
Saint Paul, MN
·Comcast

It's the market, unfortunately

As it was mentioned on Slashdot and on this site before as well, people are willing to pay it, so companies are more than willing to charge it. I myself have a data plan that includes unlimited text messaging.

Remember, we are willing to pay money for a bottle of water that we can get for free and cleaner out of a tap (well, in most cases, anyway). When we pay for something, we perceive it has value.

TKJunkMail
Enjoy the sun
Premium
join:2002-03-03
Avalon, NJ

Re: It's the market, unfortunately

It has worth as long as people are willing to pay for it. Don't like paying for it; don't use it.
bogey780

join:2004-03-19
Here

Re: It's the market, unfortunately

Soon they'll expose that Caller ID is making criminal profits too.

factchecker

@cox.net

Re: It's the market, unfortunately

said by bogey780 See Profile :

Soon they'll expose that Caller ID is making criminal profits too.
Actually, that Kushnick (sp?) guy has been doing that for several years now, talking about the true cost of CallerID and how much people are charged.

TKJunkMail
Enjoy the sun
Premium
join:2002-03-03
Avalon, NJ
·Sprint Mobile Broa..
·Comcast


1 edit

Re: It's the market, unfortunately

said by factchecker :

said by bogey780 See Profile :

Soon they'll expose that Caller ID is making criminal profits too.
Actually, that Kushnick (sp?) guy has been doing that for several years now, talking about the true cost of CallerID and how much people are charged.
But Caller-ID is an OPTION and not required. Do I wish it was cheaper - sure. But even at the price they charge, to me it is worth it to screen callers and give me control over who I talk to and when I talk to them.

P.S. I don't pay extra for CallerID myself - it is included in a land line / mobile pkg.
--
Internet News
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factchecker

@cox.net

Re: It's the market, unfortunately

said by TKJunkMail See Profile :

But Caller-ID is an OPTION and not required.
That doesn't mean customers should not be alerted to the true price versus the actual cost of delivering the service.

The reason companies get away with charging as much as they do for services like SMS/TXT and caller ID is because consumers don't know the "real costs" of the product - how much it costs to deliver that service/product.

ooglyoggly

@xo.net

Re: It's the market, unfortunately

And we still get a charge for Touch Tone!
bogey780

join:2004-03-19
Here

The thing is it's all part of the business model. Costs themselves are nebulous. A businessman just looks at total resources and how much he could make selling them off. If we paid the true cost of Caller ID, dod you think we'd pay the same in other fields?

JasonD

@comcast.net

Agreed. And they should keep raising the fee until they reach the profit apex point. They could quickly drop the price if SMS demand warrants it or they become too out of step with the market. They'd just be leaving money on the table if they don't, plus it would be hard to find an easier way to add shareholder value.

jhboricua
ExMod 2000-01
join:2000-06-06
Minneapolis, MN
clubs:
But do you consider this a moral thing to do?

en102
Canadian, eh?

join:2001-01-26
Valencia, CA
·RoadRunner Cable
·DSL EXTREME

Re: It's the market, unfortunately

Business and morality do not go hand in hand.

Businesses are out there to make money/profit.
Morality requires a conscience.
Businesses require keeping an eye on the bottom line - conscience can get in the way.
--
Canada = Hollywood North

jhboricua
ExMod 2000-01
join:2000-06-06
Minneapolis, MN
clubs:

Re: It's the market, unfortunately

Ah, and yet these same people that believe in profit at any cost, and other that supports their practices are quick to chastice the morality of those who, for example, download copyrighted material by using P2P applications.

If they lack the morality to charge ridiculous fees, how can they question the morality of those who won't play their game?
--
"Two things are infinite: the universe and human stupidity; and I'm not sure about the the universe." - Albert Einstein
Jose A. Hernandez * System Admin * MPLS, Minnesota, USA *

en102
Canadian, eh?

join:2001-01-26
Valencia, CA

Re: It's the market, unfortunately

That's why they have legality through contracts/service agreements bought for by lobbiests and lawyers.
--
Canada = Hollywood North
nasadude

join:2001-10-05
Rockville, MD
·Comcast

that's an unfortunate and true fact - and is why it is necessary sometimes for the government to become the conscience.

without either an internal or external conscience we get industries like telecom, where their greed and lack of concern for their country has resulted in a broadband market that is years behind the rest of the developed world, or the content industry, whose lawsuits and bullying have stifled untold creativity and created misery for innocent people.

the free market extremists don't believe in any government regulation or intervention, unless it is of course regulation or intervention that helps industry - does the oil industry really need tax breaks? should congress be passing laws that help the content industry prop up their obsolete business model?

TKJunkMail
Enjoy the sun
Premium
join:2002-03-03
Avalon, NJ
·Sprint Mobile Broa..
·Comcast

said by jhboricua See Profile :

But do you consider this a moral thing to do?
The capitalist system, so far, has been the best at optimizing scarce resources. And a system that is efficient returns the most to society. So, yes, I find that moral.
--
Internet News
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My Web Page

factchecker

@cox.net

Re: It's the market, unfortunately

said by TKJunkMail See Profile :

The capitalist system, so far, has been the best at optimizing scarce resources.
I would be careful when you say that once you realize that capitalist economies also exhibit the greatest amount of waste - wasted food (look in the trash of any restaurant), wasted resources (disposable products), etc.

For example, millions of gallons of oil are wasted each year on bottled water because the bottles are used once and discarded to landfills. Single use products, like water bottles, made from finite resources, like oil, are not an efficient use of resources.

anaonono

@cox.net

Moral thing to do? Do you think ANYONE standing to gain from any phone company's profits cares at all whether or not it is the moral thing to do?

Business is business, the only goal is to make as much money as possible. Any perception of morality is merely an attempt to make more money by giving some appearance of a company being moral to gain more customers, thus, make more money.

The only motivation behind any action any company does is to make more money. Bottom line. There is no such thing as "moral" in business.
nasadude

join:2001-10-05
Rockville, MD
also don't forget, "there's a sucker born every minute".

karlmarx

join:2006-09-18
iraq
·Fairpoint Communic..

That is EXACTLY correct. We are willing to pay for something that has 'value'. Why do you think P2P is so popular? Because it has no 'value', which is why it's free. If the **AA's got in the game, and charged reasonable prices that people were willing to pay, they could become the 'water' vendor of the internet. Instead, they cling to their outdated system of placing an arbitrary value on something that HAS NO VALUE. A bit is a bit is a bit. The fact that they are organized in a certain way doesn't make the price of ZERO suddenly add up to $17.99.
--
The happiest countries are the most secular. The struggle AGAINST corporations is the struggle FOR humanity!

Dan
Hamilton Tigers?
Premium
join:2002-12-17
Eh?

Re: It's the market, unfortunately

How did that jump to a RIAA slag from a topic on sms?

snipper_cr

join:2002-01-22
Wheaton, IL
clubs:

Re: It's the market, unfortunately

said by Dan See Profile :

How did that jump to a RIAA slag from a topic on sms?
Stand by for blaming it on the bush administration!

PolarBear
The bear formerly known as aaron8301
Premium
join:2005-01-03
·CableOne

said by Dan See Profile :

How did that jump to a RIAA slag from a topic on sms?
It's called a comparison. He was comparing the market of MP3s to the market of sms messages.

Kfedka
Premium
join:2005-05-06
Spokane, WA

I've had a cellphone for three years first year being Tmobile and last two years being Verizon. I have seen a drop of 0% on the rate. ISP's are either dropping rates or increasing bandwidth speeds, But these phone companies or doing neither.

There seems to be no competition whatsoever, even with some many wireless phone companies.
disc

join:2005-12-31
Raleigh, NC


1 edit

Re: It's the market, unfortunately

said by Kfedka See Profile :

I've had a cellphone for three years first year being Tmobile and last two years being Verizon. I have seen a drop of 0% on the rate. ISP's are either dropping rates or increasing bandwidth speeds, But these phone companies or doing neither.
Rumour is that Sprint is going to start some price wars: »www.thestreet.com/s/sprint-preps···googlefi

PolarBear
The bear formerly known as aaron8301
Premium
join:2005-01-03
·CableOne

Re: It's the market, unfortunately

said by disc See Profile :

Rumour is that Sprint is going to start some price wars:
Well yeah, they have to do SOMETHING to keep from losing all of their customers due to billing mistakes and poor customer service.

KrK
Heavy Artillery For The Little Guy
Premium
join:2000-01-17
Tulsa, OK
·AT&T Yahoo
·AT&T DSL Service
·Cox HSI
·AT&T Southwest

It's the lack of a competitive market, unfortunately....

This only happens because there is a limited amount of competition and they all do much the same thing.

People always extol the virtues of the Market and the Free Economy. Too bad it doesn't exist anywhere but in fiction.
--
"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!)
Ulmo

join:2005-09-22
San Jose, CA
·Comcast
·SONIC.NET


1 edit
said by MightyPez See Profile :

As it was mentioned on Slashdot and on this site before as well, people are willing to pay it, so companies are more than willing to charge it. I myself have a data plan that includes unlimited text messaging.

Remember, we are willing to pay money for a bottle of water that we can get for free and cleaner out of a tap (well, in most cases, anyway). When we pay for something, we perceive it has value.
Not all of us are that stupid, and get the free water instead, but can't do without texts.

As soon as there's a phone plan without the outrageous fees, of course we'll use it.
Forums » The True Bandwidth Cost Of SMSSMS and "Ringtones" - A Civilization in Decline »
« What does cost have to do with price?  


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