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| reply to espaeth
Re: Metered Billing Has Its Place said by espaeth:The 10K balance sheet only shows direct costs (power, hardware, maintenance, vendor fees) and not indirect costs like operating the service vehicle fleet, developing tech training programs, paying employee salaries + benefits, call center operation costs, etc. And those indirect costs scale not with traffic, but with number of customers. The number of trucks, technicians, and call center workers you need doesn't change whether your customers are using 10 GB/month, 100 GB/month, or 1000 GB/month. | | |
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| said by DGLewis:said by espaeth:The 10K balance sheet only shows direct costs (power, hardware, maintenance, vendor fees) and not indirect costs like operating the service vehicle fleet, developing tech training programs, paying employee salaries + benefits, call center operation costs, etc. And those indirect costs scale not with traffic, but with number of customers. The number of trucks, technicians, and call center workers you need doesn't change whether your customers are using 10 GB/month, 100 GB/month, or 1000 GB/month. and it would be safe to assume that these costs would go down due to the caps. e.g. less customers = lesser need for technicians/truck rolls | |
 espaethDigital PlumberPremium,MVM
join:2001-04-21
Minneapolis, MN
kudos:2
 ·Clear Wireless
| reply to DGLewis
said by DGLewis:And those indirect costs scale not with traffic, but with number of customers. The number of trucks, technicians, and call center workers you need doesn't change whether your customers are using 10 GB/month, 100 GB/month, or 1000 GB/month. I didn't say they were related to traffic consumption. I simply stated that you can't directly relate the direct costs of Data Services on a 10-K statement to revenue because it doesn't account for the most expensive parts of providing the service: the humans involved in the operation of the services, taxes, interest on outstanding debt, and other overhead. | |
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| reply to wwdubbia
said by wwdubbia:said by DGLewis:said by espaeth:The 10K balance sheet only shows direct costs (power, hardware, maintenance, vendor fees) and not indirect costs like operating the service vehicle fleet, developing tech training programs, paying employee salaries + benefits, call center operation costs, etc. And those indirect costs scale not with traffic, but with number of customers. The number of trucks, technicians, and call center workers you need doesn't change whether your customers are using 10 GB/month, 100 GB/month, or 1000 GB/month. and it would be safe to assume that these costs would go down due to the caps. e.g. less customers = lesser need for technicians/truck rolls Cost has gone down but our usage has not 
The more we use the less it cost
on the other hand, the less we use the more it cost
buy more, pay less! lol
buy large quantity save money! | |
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