Re: An Attempt at Economically Rational Pricing: Time Warner Trial

From: Patrick W. Gilmore (no email)
Date: Sat Jan 19 2008 - 22:45:54 EST

  • Next message: Simon Leinen: "Re: An Attempt at Economically Rational Pricing: Time Warner Trial"

    On Jan 19, 2008, at 11:37 AM, Joe Greco wrote:
    > Mikael Abrahamsson writes:
    >> Customers want control, that's why the prepaid mobile phone where
    >> you get
    >> an "account" you have to prepay into, are so popular in some
    >> markets. It
    >> also enables people who perhaps otherwise would not be eligable
    >> because of
    >> bad credit, to get these kind of services.
    >
    > However, if you look, all the prepaid plans that I've seen look
    > suspiciously
    > like predatory pricing. The price per minute is substantially
    > higher than
    > an equivalent minute on a conventional plan. Picking on AT&T, for a
    > minute,
    > here, look at their monthly GoPhone prepaid plan, $39.99/300
    > anytime, vs
    > $39.99/450 minutes for the normal. If anything, the phone company
    > is not
    > extending you any credit, and has actually collected your cash in
    > advance,
    > so the prepaid minutes ought to be /cheaper/.

    I disagree. Ever heard of volume discounts?

    Picking on at&t again, a typical iPhone user signs up for 24 months @ ~
    $100/month, _after_ a credit check to prove they are good for it or
    plunking down a hefty deposit.

    Compare that $2.4 kilo-bux to the $40-one-time payment by a pre-paid
    user. Or, to be more far, how about $960 ($40/month for voice only)
    compared to $40 one-time?

    Hell yes I expect more minutes per dollar on my long-term contract.

    Hrmm, wonder if someone will offer pay-as-you-go broadband @ $XXX (or
    $0.XXX) per gigabyte?

    -- 
    TTFN,
    patrick
    

  • Next message: Simon Leinen: "Re: An Attempt at Economically Rational Pricing: Time Warner Trial"





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