Re: Cingular dropping more customers that they sold service to, due to 50% policy

On Tue, 01 Aug 2006 18:30:18 -0700, SMS <scharf.steven@xxxxxxxxxxx>
wrote in <44d0002f$0$96233$742ec2ed@xxxxxxxxxxxxxx>:

Let's face it, of the 4.6 million TDMA customers, what percentage do you
think they will be able to retain on a higher cost GSM plan? They've
already indicated that they KNOW that they're going to lose a lot of
them,

What "they" actually indicated
<http://www.easybourse.com/Website/dynamic/News.php?NewsID=27229>:

The Atlanta carrier looks to have all of its customers on the same
billing platform, and move most of its customers away from the old
AT&T Wireless technology by early 2007. The company plans to
discontinue the old network by 2008. Cingular acquired AT&T Wireless
in October 2004.

While the improvement in network quality and increased focus in
customer care has been instrumental in reducing the turnover rate,
there will likely be a seasonal increase in cancellations in the
third quarter, Ritcher said during a Thursday conference call to
discuss the company's second-quarter results.

"That will create some pressure, but we're going to try to minimize
that pressure," he said. "At the end of the day, there will be some
that don't want to move over."

but probably they'll keep well over 50% of them.

Indeed.

What no one should believe, is that these low-revenue customers are
somehow "unprofitable." They actually are extremely profitable, because
they place a low burden on the network, there is no acquisition cost,
and they generally require the least support because they are not using
advanced features. ...

In fact they are unprofitable, as I've shown in analyses posted here
earlier today.

--
Best regards, FAQ FOR CINGULAR WIRELESS:
John Navas <http://en.wikibooks.org/wiki/Cingular_Wireless_FAQ>
.