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moonpuppy

join:2000-08-21
Glen Burnie, MD
reply to FFH

Re: Usage billing NOT just because of more revenue

said by FFH:

Karl keeps repeating this OVER & OVER, as if saying it constantly makes it true. Well, it isn't true. Usage based billing is ALSO about modifying customer behavior to be cognizant of what resources they consume and to recognize there are costs involved in massive usage. And the costs aren't merely monetary. They are also about delivering a good service and a consistent service. So Karl, it isn't SIMPLY about more money.

If AT&T had gone to usage billing BEFORE they rolled out the iPhone, we wouldn't be reading now about slow downloads & uploads, and disconnected calls, etc. Because the bandwidth hogs(yes I said it - bandwidth hogs) would have modified their behavior to save money.
And what happens when you get massive bills for overages like what happened when people took their phones overseas and started getting their mail? You get bad press.

And let's say you are correct in modifying behavior. What is going to happen when Apple loses money because not enough people are downloading apps because they might go over their allotment? Less money for Apple makes Apple mad.

If you tell someone to do a bunch of things with their phones only to find out later it costs a lot more, then you have a lot of pissed off customer AFTER the 30 day cancellation period.

If ATT had gone to usage based billing before the iPhone came out, you wouldn't see the sales you do now.