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Explain to me, why wouldn't this merely result in the phone companies charging higher monthly fees?
by stingraycharles 13y ago
Explain to me, why wouldn't this merely result in the phone companies charging higher monthly fees?
- dalke 13y agoBecause that number is the most competitive and most user-visible. When you buy your phone service, you get to compare it to the cost of other phone service providers.
- notimetorelax 13y agoIt might, but then there are several companies to choose from and free market principles seem to work in this case. At least there's usually some local regulations keeping companies from colluding.
- mcv 13y agoMost of the phone market is very transparent. It's just the roaming charges that make them feel like a bait and switch. Higher monthly fees are better than roaming charges, because there's clear and transparent competition there.
- Jach 13y agoSimply, because the monthly fees aren't already higher. If a company could raise the prices and still keep enough users such that it generates more profit than currently, it would have already done so. If they could and haven't, they're leaving money on the table that a competitor could take. Companies have a lot of incentive to hire people to notice if money is being left out, so it's not prudent to assume there is.
- rmc 13y agoAlthough it's possible, it's unlikely. Roaming costs used to be obscene, like €1.70 per minute to make or receive a call (that's what it cost me in non-EU Switzerland a few months ago). Telecos would have to make monthly costs ten times more expensive to compensate. No matter what, telecos are going to lose out on the roaming cash cow.
- RivieraKid 13y agoEven if they would do that, it would be a good thing, because the fees would be spreaded among all customers. Customers won't have to worry about roaming charges, which is a positive change for no additional costs on average.