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If you want to successfully "disrupt" the mobile network industry, you need to implement one specific regulatory change: force the networks to strictly bill peo
by matrix_overload 4y ago
If you want to successfully "disrupt" the mobile network industry, you need to implement one specific regulatory change: force the networks to strictly bill people per use, with no minimums or monthly fees. So if you are making 90% of the calls from a dense urban area and 10% from occasional road trips or hikes, you can place these 90% calls through a cheaper local provider, and use your major provider for the remaining 10%.
With the current "monthly plan" model it is simply impossible to launch a new competing service because your users will still have to keep their current subscription. You could argue that they would switch to a lower plan, but with the current plan prices, you could save like 10-20% by halving the amount of minutes/data you get, so nobody will do that.
No way the founders did not understand that and no way they expected an average retail miner to think about that and start asking those questions.
If you want an example how the below-inflation interest rates together with lack of antitrust enforcement create incentives for various grifts vs. long-term profitable businesses, you got one right here.
- uncertainrhymes 4y agoCarriers assume most people most of the time won't use their full allocation of minutes and data -- this is 'breakage' and is built into their pricing. If they charged on usage, the rates would look worse even if it was 'honest'. It is something I would love to see, but the market can never make it stick. I don't understand your point about a 'cheap local provider' -- they are all using the same towers, even if you get better rates from a cheaper Mobile Virtual Network Operator (MVNO) like Boost or Mint. Their rates are lower because they buy data in bulk and just manage sales and support. You don't arbitrarily get to choose city vs rural coverage, it is the same network infrastructure in the end.
- BenjiWiebe 4y agoThere actually are a few small local cellular providers with their own infrastructure. Then they have expensive roaming if you go out of their area, at least, that's how the local one to me does it.
- deleted 4y ago[deleted]