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Maintaining infrastructure doesn't become more expensive just because the competition is using it when roaming. What they're doing is basically double dipping c

by Fuxy 13y ago

Maintaining infrastructure doesn't become more expensive just because the competition is using it when roaming. What they're doing is basically double dipping charging customers for service and competitors for roaming which the network are passing along to the customers. However you look at it the customer is the one getting screwed here. They are only bitching because they're being forced to re think their business model and make it more fair. When you think that Vodaphone is doing it even if you're still using their network just in another country it makes you think what's the difference between this and stealing? They're not competing with themselves so it's basically a scheme to make more money.

DougWebb 13y ago
I'm not sure that's true. If Company A builds out a bunch of infrastructure but it's mostly used by Company B's customers, then Company A isn't getting the earnings it needs to pay back the infrastructure investment. Either Company B's customers need to send some revenue to Company A, or Company A is going to go out of business, possibly taking the infrastructure with it. Roaming fees, whether paid by the customers, the companies, or both, are necessary to support building and maintaining the infrastructure. Now, when Company A and Company B are actually two divisions of the same parent company (which is apparently often the case for Vodaphone) then you're right; the roaming fees are double-dipping.
- Fuxy 13y ago
  Company A is still able to adjust pricing on a global level (all customers) to compensate. If too many of Company B's customers go on Company A's network pricing will increase until they start choosing cheaper networks automatically balancing load and keeping prices at a similar point. Plus we're talking about roaming here it's not like a lot of people decide to go on vacation at the same time and stay there for years until the company collapses.

by Fuxy 13y ago

DougWebb 13y ago

I'm not sure that's true. If Company A builds out a bunch of infrastructure but it's mostly used by Company B's customers, then Company A isn't getting the earnings it needs to pay back the infrastructure investment. Either Company B's customers need to send some revenue to Company A, or Company A is going to go out of business, possibly taking the infrastructure with it. Roaming fees, whether paid by the customers, the companies, or both, are necessary to support building and maintaining the infrastructure. Now, when Company A and Company B are actually two divisions of the same parent company (which is apparently often the case for Vodaphone) then you're right; the roaming fees are double-dipping.

Fuxy 13y ago
Company A is still able to adjust pricing on a global level (all customers) to compensate. If too many of Company B's customers go on Company A's network pricing will increase until they start choosing cheaper networks automatically balancing load and keeping prices at a similar point. Plus we're talking about roaming here it's not like a lot of people decide to go on vacation at the same time and stay there for years until the company collapses.