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danc4498

@link2gov.com

Raised prices

I think the reason prices were raised was to get people to move on to the unlimited plan texting programs. I imagine ATT wants to get rid of a cost per text model, and the only way is to do so (without lowering the price of the unlimited model), is to make the unlimited model more appealing.


shaner
Premium
join:2000-10-04
Calgary, AB
Well, that's it exactly. When imnvestors are looking at ARPU as a defining factor in AT&S worth, then they have incentive to try and convert variable consumer charges into guaranteed fixed rates like Unlimited SMS.


djrobx
Premium
join:2000-05-31
Valencia, CA
kudos:2
Reviews:
·Time Warner Cable
·VOIPO
reply to danc4498
Why would AT&T want to get rid of the per-text cash cow? Think of all the money they make on people who unexpectedly use more texts than expected.

I think the only thing that will cause a shift to reasonably priced unlimited texting is competitive pressure.


rdcpro

@qwest.net
said by djrobx:

Why would AT&T want to get rid of the per-text cash cow? Think of all the money they make on people who unexpectedly use more texts than expected.
Those people are likely to contact the call center, and complain, or try to get the charges removed. My daughter accidentally subscribed to one of those text-a-day things she saw on TV, and by the time I found out about it, it had racked up over $50 in costs.

Spent some time on the phone with their call center, and the charges were reversed. Where's the profit in that?

Besides, it probably costs them more per message on a pay as you go plan, because of the accounting costs.

Given that most folks send less than their plan limits, getting everyone to pay MORE for unlimited makes more money.

As annoying as knowing what the true cost actually is, I have to say that occasionally text messaging is worth it--there are times you can't talk on the phone, but sending a message is just about as good. And I have a number of servers in datacenters, so when something goes toes up, a text message is way better than a call from an angry customer.

I pay for 300/mo for my phone, but my daughter has unlimited. I learned that lesson! ;^)