TKJunkMail
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| reply to insomniac84
Re: Why?
said by insomniac84  :Why would anyone still be using an analog phone? Good point. Cingular is just taking the steps necessary to phase out old systems and equipment. And they are doing it over several years until early 2008. Some users will just not upgrade unless incented to do so.
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R4M0N
Brazilian Soccer Ownz Joo
join:2000-10-04
Glen Allen, VA
·Comcast
| said by TKJunkMail :said by insomniac84 :Why would anyone still be using an analog phone? Good point. Cingular is just taking the steps necessary to phase out old systems and equipment. And they are doing it over several years until early 2008. Some users will just not upgrade unless incented to do so. I have no problem with them wanting to migrate customers, but I think a carrot is better than a stick when you're trying to KEEP those customers.
How about a non-crappy selection of phones that can be swaped for free? They did that once but the phones were't worth the drive to pick them up. That's why we chose to keep the older phone. |
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nixen
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Alexandria, VA
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| reply to TKJunkMail
said by TKJunkMail :said by insomniac84 :Why would anyone still be using an analog phone? Good point. Cingular is just taking the steps necessary to phase out old systems and equipment. And they are doing it over several years until early 2008. Some users will just not upgrade unless incented to do so. If they want to "incent", they should offer a basic phone. I gotta think that a free phone is more cost effective than completely giving up a subscriber.
-tom
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TKJunkMail
Enjoy the sun
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Avalon, NJ
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| said by nixen :If they want to "incent", they should offer a basic phone. I gotta think that a free phone is more cost effective than completely giving up a subscriber. Usually, but not always. Some customers generate so little revenue, that billing and customer service costs exceed the income derived. They may not mind those customers departing to a competitor.
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nixen
Rockin' the Boxen
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Alexandria, VA
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| said by TKJunkMail :said by nixen :If they want to "incent", they should offer a basic phone. I gotta think that a free phone is more cost effective than completely giving up a subscriber. Usually, but not always. Some customers generate so little revenue, that billing and customer service costs exceed the income derived. They may not mind those customers departing to a competitor. True. You also have to factor in, "how attractive is a company with 16Mn subscribers versus one with 10Mn subscribers" to potential partner program partners, investors, etc.
If they've got their cell plans structured such that a customer using 0 minutes per month is costing them money, then they've got bigger problems than legacy technology.
Lastly, if the 15%:3% posted in another subthread is accurate, the TDMA users are actually providing a small subsidy to Cingular's bottom line.
-tom
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"Experience should teach us to be most on our guard to protect liberty when the government's purposes are beneficial. The greatest dangers to liberty lurk in insidious encroachment by men of zeal, well meaning but without understanding." -Louis D Brandeis |
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travelguy
join:1999-09-03
Santa Fe, NM
| reply to TKJunkMail
said by TKJunkMail :Usually, but not always. Some customers generate so little revenue, that billing and customer service costs exceed the income derived. They may not mind those customers departing to a competitor. Right. What you have to understand is that the cellcos are rated by Wall Street based on their ARPU - Average revenue per unit (subscriber). By dumping subscribers who are pulling their ARPU down, the cellcos get rewarded by Wall Street, even though they have less customers to cover the fixed costs, which is the majority of their business. |
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KrK
Heavy Artillery For The Little Guy
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Tulsa, OK
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| reply to TKJunkMail
said by TKJunkMail :Some users will just not upgrade unless incented to do so. Well I learned something today  I too thought the meaning of the word "incentive" implied a positive or encouragement to carry out some task. Apparently that's not the case, "incentive" is actually neutral, as is, it can be a positive (the carrot) OR a negative (the big stick) to carry out a task.
So saying Cingular punishes their customers as an incentive to upgrade is actually a correct use of the word, incentive.
But I digress.... I feel they would be better off offering upgrade bonuses before bringing the Punishment out. That just makes customers angry and when they DO upgrade, they will most likely pick a competitor FIRST.
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