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silbaco
Premium
join:2009-08-03
USA
reply to elray

Re: Overages ! Ca ching

I think they just want money and don't really care how they get it. And despite what a lot of people say about massive profits, their profit margin is really not that impressive.


elray

join:2000-12-16
Santa Monica, CA
Reviews:
·Time Warner Cable
·EarthLink

said by silbaco:

I think they just want money and don't really care how they get it. And despite what a lot of people say about massive profits, their profit margin is really not that impressive.

They want the extra add-on revenue from Redbox.
Not overage charges.

As for margins, if they were "massive", or enjoyed "record profits", as the envious bankrupt socialist media likes to refer to, then another "greedy" firm would enter the market in pursuit of those dollars. We've seen how well Sprint and TMobile have fared.


KrK
Heavy Artillery For The Little Guy
Premium
join:2000-01-17
Tulsa, OK

Ever heard of barriers to entry?

The biggest problem with the Laissez-faire market theory is that it always assumes that at any time anyone can enter business and increase the supply of choices and competition. Since that isn't true, the rest of it also fails.
--
"Fascism should more properly be called corporatism because it is the merger of state and corporate power." -- Benito Mussolini


elray

join:2000-12-16
Santa Monica, CA
Reviews:
·Time Warner Cable
·EarthLink

said by KrK:

Ever heard of barriers to entry?

The biggest problem with the Laissez-faire market theory is that it always assumes that at any time anyone can enter business and increase the supply of choices and competition. Since that isn't true, the rest of it also fails.

Sprint-Nextel-Clear, TMobile, MetroPCS, Leap, Cricket, and to some extent, America Movil prove that those "barriers" are surmountable.


KrK
Heavy Artillery For The Little Guy
Premium
join:2000-01-17
Tulsa, OK

Actually, they are proving that the barriers aren't surmountable.

Thus why so many MVNO's.


elray

join:2000-12-16
Santa Monica, CA
Reviews:
·Time Warner Cable
·EarthLink

said by KrK:

Actually, they are proving that the barriers aren't surmountable.

Thus why so many MVNO's.

The existence of MVNO's only further prove that the barriers are surmountable.


KrK
Heavy Artillery For The Little Guy
Premium
join:2000-01-17
Tulsa, OK

Circular argument is circular.