Re: Cingular dropping more customers that they sold service to, dueto 50% policy
- From: John Navas <spamfilter0@xxxxxxxxxxxxxx>
- Date: Fri, 04 Aug 2006 05:15:08 GMT
On Thu, 03 Aug 2006 20:37:56 -0700, "Paul Hovnanian P.E."
<paul@xxxxxxxxxxxxx> wrote in <44D2C114.8584119A@xxxxxxxxxxxxx>:
John Navas wrote:
On Thu, 03 Aug 2006 14:01:25 -0700, "Paul Hovnanian P.E."
<paul@xxxxxxxxxxxxx> wrote in <44D26425.8EE3112E@xxxxxxxxxxxxx>:
SMS wrote:
Scott wrote:
For one thing, the low revenue customers for Cingular are mostly on
TDMA, a network that they are trying to get everyone off of. Unlike
Sprint and Verizon, they have a stick that forces their older customers
to actually do something rather than sit back and enjoy a low-priced
plan forever.
That's a gamble which Cingular made and may have bet their survival on.
If it turns out that TDMA customers are more profitable, they will leave
in droves when they lose coverage in fringe areas like resorts, on their
yachts, etc.
Cingular undoubtedly knows whether they are profitable or not.
But do they know how many people that do several hundred dollars a month
of air time during the week will drop them like a rock when the few
calls them make from the ski lodge won't go through anymore?
They might think that since most of their TDMA call volumes occur within
areas overlapped by GSM, that the few (low volume, low profit) calls
placed by the same customers in fringe areas aren't as important to them
(the customer). That could be a big mistake.
Given that these remaining D-AMPS ("TDMA") customers make only 1/4 as
many calls as average subscribers (according to Cingular data), that
wouldn't seem to be the case.
--
Best regards, FAQ FOR CINGULAR WIRELESS:
John Navas <http://en.wikibooks.org/wiki/Cingular_Wireless_FAQ>
.
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