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Because of the profit margin on wireless, and the ability to artificially increase profits are so much greater. People wouldn't stand for per GB pricing on FIO

by tw04 10y ago

Because of the profit margin on wireless, and the ability to artificially increase profits are so much greater. People wouldn't stand for per GB pricing on FIOS because they're used to unlimited. The wireless industry has managed to perpetuate this idea that bandwidth on wireless is an extremely limited resource and they abuse it to no end.

massysett 10y ago
1) It doesn't make sense that both Verizon and all its possible competitors (including anyone not in the wireless business) would leave FTTP profits on the table merely because they can make more on wireless. 2) I thought one point of the article is that wireless bandwidth is limited. They can only get so many GB in given frequency, and the 5G requires a higher number of cell sites.
deleted 10y ago
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rayiner 10y ago
> Because of the profit margin on wireless, and the ability to artificially increase profits are so much greater. How is the ability to "artificially increase profits" "so much greater" in a market where everyone has 3-4 options than in a market where you're almost guaranteed to be the only game in town? Verizon charges - and people pay - $10/GB for extra data for the same reason Apple charges $100 to for a few extra $$ of flash memory. It's classic price discrimination. You sell the minimum 90% of people are okay with, then charge a ton more for the price-insensitive customers.
- jlgaddis 10y ago
  > Verizon charges - and people pay - $10/GB for extra data for the same reason Apple charges $100 for a few extra $$ of flash memory. Because consumers continue to pay those amounts.
  - rayiner 10y ago
    But why can't Verizon just do the same for FiOS? And why don't consumers just get TMobile unlimited for $70?
    - tw04 10y ago
      Because Verizon has created an artificial monopoly by buying up the vast majority of the most coveted spectrum. The only reason T-Mobile is even in business still is because of the failed AT&T acquisition which netted them more valuable spectrum than they had ever or would ever have been able to get via the government auctions. AT&T can somewhat compete, but the failed T-Mobile deal hurt them far worse than anyone seems to be acknowledging.

by tw04 10y ago

massysett 10y ago

1) It doesn't make sense that both Verizon and all its possible competitors (including anyone not in the wireless business) would leave FTTP profits on the table merely because they can make more on wireless. 2) I thought one point of the article is that wireless bandwidth is limited. They can only get so many GB in given frequency, and the 5G requires a higher number of cell sites.

deleted 10y ago

[deleted]

rayiner 10y ago

> Because of the profit margin on wireless, and the ability to artificially increase profits are so much greater. How is the ability to "artificially increase profits" "so much greater" in a market where everyone has 3-4 options than in a market where you're almost guaranteed to be the only game in town? Verizon charges - and people pay - $10/GB for extra data for the same reason Apple charges $100 to for a few extra $$ of flash memory. It's classic price discrimination. You sell the minimum 90% of people are okay with, then charge a ton more for the price-insensitive customers.

jlgaddis 10y ago
> Verizon charges - and people pay - $10/GB for extra data for the same reason Apple charges $100 for a few extra $$ of flash memory. Because consumers continue to pay those amounts.
- rayiner 10y ago
  But why can't Verizon just do the same for FiOS? And why don't consumers just get TMobile unlimited for $70?
  - tw04 10y ago
    Because Verizon has created an artificial monopoly by buying up the vast majority of the most coveted spectrum. The only reason T-Mobile is even in business still is because of the failed AT&T acquisition which netted them more valuable spectrum than they had ever or would ever have been able to get via the government auctions. AT&T can somewhat compete, but the failed T-Mobile deal hurt them far worse than anyone seems to be acknowledging.