Monday, March 26, 2007
Focus on wireless pricing
I'd like to relate a little side discussion I have had with a colleague in the wake of my 'wireless pricing' posting from last week.
He wrote me:
My reply to him was to look at the personal computer marketplace, and compare it to mobile services. I think there may be a few comparisons. Both are 'high tech' productivity devices. The government would like to see all of us using them. For PCs, there seem to be 3 price points: entry level of around $500; mid-level around $1000; and power user (multi-media, gaming) around $1800. Each supplier offers bundled systems around these price ranges and you can take each package and enhance it until you reach the point that you might be better off with the next level of bundled capabilities.
The focus for the PC ads is the package. I don't see PCs being sold on a dollar per MHz of CPU or cents per MB of storage basis. Still, I don't think anyone would suggest that there isn't price competition for PCs. I'd like to have that gaming computer with the 22 inch wide-screen flat panel, dual DVD drives ...
Still, would anyone argue that we need a government subsidy to help a new computer company get into the market?
Technorati Tags:
price, wireless, mobile
He wrote me:
the focus of the ads and campaigns is the package, not the price per minute - there's no focus on price (whether on a per minute or monthly basis) whatsoever - I don't think the average consumer does that calculation and that's where the confusion comes in - you can't compare apples to apples - obfuscation rules!!!He added a couple dozen exclamation points, so excuse me for having abridged the quotation.
My reply to him was to look at the personal computer marketplace, and compare it to mobile services. I think there may be a few comparisons. Both are 'high tech' productivity devices. The government would like to see all of us using them. For PCs, there seem to be 3 price points: entry level of around $500; mid-level around $1000; and power user (multi-media, gaming) around $1800. Each supplier offers bundled systems around these price ranges and you can take each package and enhance it until you reach the point that you might be better off with the next level of bundled capabilities.
The focus for the PC ads is the package. I don't see PCs being sold on a dollar per MHz of CPU or cents per MB of storage basis. Still, I don't think anyone would suggest that there isn't price competition for PCs. I'd like to have that gaming computer with the 22 inch wide-screen flat panel, dual DVD drives ...
Still, would anyone argue that we need a government subsidy to help a new computer company get into the market?
Technorati Tags:
price, wireless, mobile
Posted by Mark Goldberg @ 3/26/2007 06:42:00 AM 
Comments:
<< Home
misleading much? The cost of entry to start a computer company is in the realm of what $15,000. The cost of entry into the wireless game is?
Why is it so high? Is it because of regulations that were made in concert with the incumbant operators, that are highly prejudicial to new entrants and that retard competition by reducing the number of competitive companies to a handful of spectrum licensees?
Get back to us when the average guy can start a wireless company -- then we'll have true competition and maybe the consumer will benefit by not having rediculusly long contracts, by not having to put up with sub-par billing and customer service, by not having to decode the clever marketing tricks to figure out what the bill will be at the end of the month.
For my 2 cents, it's time for legislated access to the spectrum/towers that allows for more than a handful of competitors.
After all, they're our airwaves and the deal isn't currently in our best interests; time to change the deal.
Post a Comment
Why is it so high? Is it because of regulations that were made in concert with the incumbant operators, that are highly prejudicial to new entrants and that retard competition by reducing the number of competitive companies to a handful of spectrum licensees?
Get back to us when the average guy can start a wireless company -- then we'll have true competition and maybe the consumer will benefit by not having rediculusly long contracts, by not having to put up with sub-par billing and customer service, by not having to decode the clever marketing tricks to figure out what the bill will be at the end of the month.
For my 2 cents, it's time for legislated access to the spectrum/towers that allows for more than a handful of competitors.
After all, they're our airwaves and the deal isn't currently in our best interests; time to change the deal.
Posted by 
: 11:50 AM, March 26, 2007
: 11:50 AM, March 26, 2007 << Home
Syndicate
