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

On Sat, 29 Jul 2006 06:42:53 -0700, SMS <scharf.steven@xxxxxxxxxxx>
wrote in <44cb65e0$0$96208$742ec2ed@xxxxxxxxxxxxxx>:

Sam wrote:

True. But isn't like we don't have a fixed account receivable business
model here. I mean, contract or no contract, you still pay monthly fees. So
every customer is profitable.

This is true.

Actually false. There is a real "opportunity cost" of service, and low
revenue customers can in fact be unprofitable.

Wireless is unlike a business where you're actually manufacturing
something, since with wireless, each new customer doesn't require new
production (yes, eventually you'll have to add capacity, but in reality
the network is built out now, and the carriers are desperately trying to
use all the capacity they built).

Also untrue for the reason stated above.

Bottom line is that it makes sense to give your better customers better
deals on new equipment, it's just hard to take something away that
you've been giving away in the past.

Of course.

John Navas <>

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