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34764170

join:2007-09-06
Etobicoke, ON
reply to InvalidError

Re: Bell Unlimited Promotion

said by InvalidError:

In principle, incumbents do have the opportunity to optimize their network to their own needs and subscriber usage patterns, which should grant them a considerable cost saving advantage over wholesale if they decided to fully leverage it.

So I would not be so quick to conclude that wholesale end-users cost incumbents less (infrastructure-wise) than retail subscribers. After all, accommodating wholesale services does require extra equipment and network configurations that incumbents would not otherwise need for themselves.

In theory they could do a lot of things but they do not. The IISPs also have an advantage of not having such large companies with massive overhead that has to be taken into consideration with pricing of the products.

I never said they cost the incumbents less. Wow, for real? It requires extra equipment to service wholesale customers? Like that isn't painfully obvious. This is the business they are in as a telecommunications carrier.

InvalidError

join:2008-02-03
kudos:5
said by 34764170:

The IISPs also have an advantage of not having such large companies with massive overhead that has to be taken into consideration with pricing of the products.

You can have small companies with disproportionate overheads and large companies with smaller (proportionally) overheads too. It has a lot more to do with management and corporate culture than the company's size.

On the other hand, a small company cannot avoid losing out on economies of scale and efficiency gain opportunities. Things like internal tools, processes and procedures R&D are almost flat regardless of company size so they are much more easily absorbed by larger organizations and those get a lot more value out of them too.

If you mean overheads like work unions, TSI could get hit by one of those too if their employees start feeling like they deserve more than what TSI is willing to give them. I don't know about Ontario's labor code but last time I heard/read about it in QC, employers with more than 50 full-time employees cannot object to employees voting to unionize.