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criznag
join:2000-08-23
Kansas City, MO | reply to Anon
Re: Now Who's Next But wouldn't they rather have my money for 8 months then not have any of my money at all? That just dosen't make any sense. It took like like 4 months to hook me up, they will never make all that money back. I guess this is why all these companies are going out of business.. | | |
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Anon | said by Edelstein:
But wouldn't they rather have my money for 8 months then not have any of my money at all? That just dosen't make any sense. It took like like 4 months to hook me up, they will never make all that money back. I guess this is why all these companies are going out of business..
Say it costs them $200 to get you connected (really low, especially if they had a truck roll).
Your $54.95 (That's what covad.net is charging me) * 8 =$439.60.
Subtract the $200 cost for your install and they are left with $239.60 as profit. Now pay for that T1, 24x7 customer support, etc... You'll see that they are making very little per month.
In short, it's better for them to not take your money. The resources would be better spent for someone who will be there for the whole year, so they can recoup the costs and even make a profit.
Problem with DSL is that the costs are relatively high to get it installed and the companys won't see a profit for a while. It's sort of like the early days of cellular. They were giving phones away that cost $400, hoping to make it back on the 1 year contract they sold you (with limited minutes).
-Matt | |
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