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akrhodes

join:2013-03-06
Raleigh, NC

[DIRECTV] Why the switch in 2006 by DirectTV from owning to leas

I work for a company that specializes in utility infrastructure systems. The company currently sells towers/equipment to its clients so that automatic meters can transmit data to the tower, which then transmits the data to the software that records the data in the correct clients' account.

The company is considering changing from selling this equipment to leasing this equipment, much like DirecTV did in 2006. Does anyone know the reasoning behind this change? Anything to do with the FCC? It's obvious the change to leasing allows them to make more money off the box, but is there a reason from a marketing perspective?



Hayward
K A R - 1 2 0 C
Premium
join:2000-07-13
Key West, FL
kudos:1

1 recommendation

Re: [DIRECTV] Why the switch in 2006 by DirectTV from owning to

Lower upfront customer cost. (free or $99 instead of $3-500) and stays long enough more money for company.
2yr contract x $6/mo is $144 or $244 if a $99 upfront.
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akrhodes

join:2013-03-06
Raleigh, NC

Makes sense - thanks for the response!