omegadangerdoom
@dai.com
| reply to TKJunkMail
Re: Cell phone devices prices will rise if advocates win
said by TKJunkMail  :There is plenty of competition. But one result of ending exclusivity deals would be everyone paying full price for cell phones. And the ones that would hurt the most are those users who can least afford to buy cell phones up front. Could you elaborate on that more please? When the blackberry and the razr broke exclusivity, they still had a subsidy, discounted price. I use to sell cellphones for a couple of years and I don't see anything like ending exclusivity bring UP the price on cell phones. The industry wouldn't be able to handle the backlash.
Ultimately, I think its a moot point anyways. Most people like going with the carrier for THE SERVICE not THE DEVICE. I've only rarely seen people leave their service for a phone (especially if they know their current service is superior) ie: leaving Verizon for Sprint because the latter has the new Palm Pre (which admittedly IS cool). |
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TKJunkMail
Enjoy the sun
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join:2002-03-03
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1 edit | said by omegadangerdoom :said by TKJunkMail :There is plenty of competition. But one result of ending exclusivity deals would be everyone paying full price for cell phones. And the ones that would hurt the most are those users who can least afford to buy cell phones up front. Could you elaborate on that more please? When the blackberry and the razr broke exclusivity, they still had a subsidy, discounted price. The same advocates are also proposing that cell service providers NOT be allowed to subsidize cell phone purchases by tying the purchase to cell service contracts.
IOW, no exclusivity & no cell phone purchases subsidized by contracts. »techdirt.com/articles/20090305/1···12.shtml
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jhboricua
ExMod 2000-01
join:2000-06-06
Minneapolis, MN
clubs:
| reply to omegadangerdoom
said by omegadangerdoom :
Ultimately, I think its a moot point anyways. Most people like going with the carrier for THE SERVICE not THE DEVICE. I've only rarely seen people leave their service for a phone (especially if they know their current service is superior) Huh? So because you've rarely seen people leave their service for a phone you concluded that is a rare occurence? I suppose the potential millions of users that have switched to AT&T so they can have an iPhone don't count. |
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omegadangerdoom
@dai.com
| said by jhboricua :said by omegadangerdoom :
Ultimately, I think its a moot point anyways. Most people like going with the carrier for THE SERVICE not THE DEVICE. I've only rarely seen people leave their service for a phone (especially if they know their current service is superior) Huh? So because you've rarely seen people leave their service for a phone you concluded that is a rare occurence? I suppose the potential millions of users that have switched to AT&T so they can have an iPhone don't count. The "millions" of users who switched over to the iphone you mentioned mostly were ALREADY At&t customers (or cingular customers...same thing).
Yeah working with Verizon, I had to study and re-study things like churn rates and retention. I looked it up and followed up on it everyday. YES, they were a ridiculous number of people going over to At&t for the iphone but not as many as you think and a good number of them left after the 30 days to stay with their previous service. Some people even got the iphone just to bring them over to T-mobile (which, IMO, has GREAT customer service compared to At&t).
I'm getting off track here. Basically phones like the iphone, blackberry storm and the like are a niche product usually made to RETAIN customers. Rarely will customers who leave a service they like go over to another provider who may have inferior service (not saying that you WILL be met with a provider with inferior service). I just don't think this whole debate of exclusivity really matters. People like what they like. Your average customers (those who make the bulk of most cell phone service providers) don't care if another company has the hot phone. More likely than not if the subject comes up they ask their current provider if they have a phone that compares to the competition. |
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jjeffeory
join:2002-12-04
USA | reply to omegadangerdoom
I know 10 people who went with at&t because of the iphone. I know 3 that want the iphone but won't leave their current carrier. The iphone kind breaks that theory. People really like it. |
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Steve Mehs
Go Sabres
join:2005-07-16
| reply to omegadangerdoom
quote:
Ultimately, I think its a moot point anyways. Most people like going with the carrier for THE SERVICE not THE DEVICE.
What planet are you on? A friend of mine paid the ETF on Verizon to get out of his contract and went with AT&T just for the iPhone. And just yesterday, I went with AT&T just for the iPhone, but I'm not going to use it as a phone, AT&T is basically getting $70/month for me for mobile internet access, I'm sticking with Nextel for day to day calling. I hate AT&T, I just really like the iPhone.
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