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These plans are built around the assumption that most customers will not use anywhere close to the limit.
That's one of the most bone-headed things I've ever heard. Companies pay very little for actual use of their network. Most costs are customer acquisition related and network upgrades. Once the upgrades are paid for, you go back to it costing very little.
Look at Metro PCS as a prime example. They virtually give away service and are still cash flow positive. They run a low overhead operation with no handset subsidies. That's how it works and that's how they continue to expand. If they combined with Cricket they would have licenses to be a true nationwide provider.
Wheras Verizon (and I am assuming other carriers, but I can't speak for them) invest billions annually to expanding and upgrading their network. In verizon's case it is an average of 1 billion ever other month, or 6 billion annually. On top of that you have R&D into new technologies (4g, the new cross platform app store, etc) investing in new phones (carrier exclusives), and typical network maintenance (COWS, etc) in addition to the millions, if not BILLIONS spent annually on advertising and promotions.
Metro PCS has what? a couple of billboards to pay for?
Upkeep on towers is expensive. If ...
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Network usage now and forever will be a very small line item on a quarterly statement for ALL wireless carriers. I urge you to look at Q2 reports for each wireless provider for a general idea. Especially look at that CPU. That's cost per user. Every dollar above that on a monthly service plan is a potential dollar profit per user regardless of actual usage of the network.
Metro's cost per user is $16.82. T-Mobile who's investing a ton of money into their network right now is $23. I imagine the other guys are in line with that $23 number. To think...
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So 23*4=92 That means on a 4 line plan, with the CPU you posted, it costs the company $2 more to offer service than they take in in monthly subscriptions. so yes, if those 4 people use everything, or even if they just use the average cost, they cost the company money.
Individual users might be profitable, family plans.. not as much so. The profit any company makes by offering voice time is dropping drastically every year, Where the companies still make a profit is data revenue
Yes, the companies make a profit, but they do so because most customers use nowhere near the minutes alloted to them (or data). If every customer ...
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As far as family plans go I'll agree with you there. The old plans are not as profitable. In the same breath, people on those old plans only use voice as data never came as part of the package. We're kind of going in circles when really our thinking isn't far off.
CHANELPHONE said:
The popularity of the "Fave 5" idea and the fact customers feel that feature is a civil right
Is that the 28th Amendment to the constitution - "Hereby and hencefoth every man, woman and child, shall have the right to his or her Fave 5 on the wireless device of their choice"
God bless the United States 🤣
CHANELPHONE said:The point is, At&t only has respect for the bank!
This is the stupidest comment ever.
There is not one business out there that is not in business for the "bank."
If they aren't in it for money then its a NPO.
ATT =! NPO