Mr Matt
join:2008-01-29
Eustis, FL
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| reply to tiger72
Re: Remember Regan's Speech. said by tiger72:It also likely brought us innovation. You know, the kind that helped spur 4 nationwide wireless networks to span a geographic area the size of Europe, at prices lower than most European networks (save for the UK which has absurdly low pricing and lots of competition). Our prices are lower than Canada's prices, and they have a TON of regulation. Please note that in this comment I have not included taxes and crap charges.
My first wireless service cost about $60.00 per month for one line, in 1992 before, PCS the bands became available. The plan allowed 30 Minutes per month and cost $0.60 per minute for any minutes in excess of the allowance. That pricing model is what gave the incumbent wireless carriers an incentive to expand their systems between 1982 and 1992.
Wireless carriers use punitive pricing to intimidate customers. What I get for an additional $20.00 per month if I pre-subscribe on my current family plan is an additional 700 minutes. If I don't and I exceed my allowance by 44.44 Minutes I will be charged an additional $20.00 that month. On the other hand I can get a prepaid plan from an MVNO that offers service on the same network as my current wireless provider for less than $0.10 per minute. Forty Five Cents per minute is what I call abusive.
If I had a 700 minute plan in 2005 I would have paid $90.00 each month for the two months that I exceeded my 700 minute allocation by 200 minutes. That is $180.00 extra in 2005 for 400 additional minutes. On the other hand if I subscribed to a 1,400 minute plan rather than a 700 minute plan, I would have paid an additional $240.00 per year. The crossover is at 533.33 excess minutes per year.
 tiger72: Please send an e-mail to Spell Check and criticize it for not giving me a choice between Regan and Reagan. |
