|reply to openbox9 |
Re: They could stop the promos and not raise prices
said by openbox9:They may not be stupid, but it does not seem like the telcos have a clear plan in place, and they have misstepped before and lost a ton of customers. Both Verizon and AT&T arrogantly sat on their hands while the technology and innovation in the cable industry overtook their product offerings in both price and performance. In their myopic vision to make quick profits and to immediately satisfy investors, I'm certain they will continue to make decisions that some would consider to be dumb. said by axus:
It seems dumb to lose customers when they've already made the expensive hardware investments to reach them. All the cost was up-front, how much does it cost to keep an existing customer?
You assume the defections will be high. Verizon isn't stupid, it will raise rates in such a manner that a majority of consumers will absorb the increase. Promos exist to attract and lock in new subs. New subs grow revenue at a must faster rate than raising rates for existing subs.