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The background melody ad thing is actually a nice idea (I wouldn't accept it, but some would) but I think the time for major cost disruption in the telcom space
by jhancock 17y ago
The background melody ad thing is actually a nice idea (I wouldn't accept it, but some would) but I think the time for major cost disruption in the telcom space is ripe so this biz model will have a limited life span.
I have heard that AT&T in the '80s (before the breakup) determined they could put every home in America on a fixed $20/month payment and allow unlimited calling. Keep in mind this before digital switching, which should make it even cheeper now.
Enabling every cell user or land line user in the U.S. to have unlimited calling for a low fixed price is achievable. What makes it not happen is lack of regional competition (sure, there may be several cell providers in your area, but only one has great coverage) and this happens due to lack of teeth in bills from Congress. We're still waiting for cell providers to let us use unlocked phones like most of the rest of the world.
I think the telco's days are numbered. Consumers have known for a long time they are getting ripped off. This lengthy recession (call it what you want) may cause pressure on Congress to provide some relief. We may very well finally be able to buy an unlocked phone for less than $200 and use it on the most competitive carrier with no long term contract. When that happens, you will get your unlimited calls for $20/month and only the poorest of the poor will use such an advertising supported service.