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Forums » Qwest: Things Are Just So Darn Competitive, We Must Raise Prices » Hmm. . .
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The scariest part »
« 21st century  
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EPS

join:2008-02-13
Hingham, MA

reply to nasadude
Re: Hmm. . .

The problem with the cellular business (and same with many telecommunication businesses) is that it's not elastic. Most people get hit with a 5c increase in text-messaging will just complain and pay up, or maybe get a text-messaging plan (which is what the cellcos want you to do), so there's no disincentive for other carriers not to do the same thing, no matter how many there are.

nasadude

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

reply to fireflier
said by fireflier See Profile :

...

So explain to me again why some cell providers just raised text messaging to $.20/msg from $.15/msg?

...
same story - the cell business is not really that competitive. Little or no competition is very conducive to price increases and/or service degradation.


en102
Canadian, eh?

join:2001-01-26
Valencia, CA
reply to fireflier
Its the same reason they can charge ~ $5/month for caller id. Its an easy profit item, used to subsidize profits or other items.
--
Canada = Hollywood North


fireflier
Coffee. . .Need Coffee
Premium
join:2001-05-25
Limbo
·Skype

Steve Davis, Qwest's senior vice president of public policy, said, "Prices in communications services over the last 10 years have been either down or flat."

So explain to me again why some cell providers just raised text messaging to $.20/msg from $.15/msg?

I'd genuinely like to see the explanation for why "sometimes prices do increase". rather than a generalized statement that they do.

Quest better be careful or they'll make an argument counter to the arguments used by some in the cable industry to justify clamping down on bandwidth usage and woefully inadequate upload speeds.

Would you like a side of greed with that customer raping?
--
Tradition: Just because you've always done it that way doesn't mean it's not incredibly stupid. --despair.com
Forums » Qwest: Things Are Just So Darn Competitive, We Must Raise PricesThe scariest part »
« 21st century  


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