Yes, Jay is correct as far as the elements of providing bandwidth go. But the point is, once its in, the incremental use doesn't cost very much. The phone companies screw us ( that being said, I use to work for one).
Yes, it cost quite a bit to build out for AT&T but even so, they made a huge profit. Does that not mean they could lower our cell phone costs? They know they'll make the money back. That's a given.
🐰 Alice
On May 8, 2012, at 9:13 PM, "N.A. Nada" <whodo678@comcast.net> wrote:
> Jay, is correct, cell providers have a heck of a nut to crack to cover their overhead.
>
> Text messaging is nearly expense free to the carrier, since it "rides" on the signal used to connect the cell phone to the cell tower. That is why there is a is a 140 character limit for simple text messages.
>
> There is a heck of a big overhead to running a cellular network. And as Jay said, when AT&T first offered the iPhone, their network became overloaded, and the had to build it out some more and add a heck of a lot of cells in the metro areas like New York to handle the demand.
>
> Brent
>
>
> On May 8, 2012, at 8:20 PM, Jay Abraham wrote:
>
>> Alice,
>>
>> I don't know where you heard that but it isn't true. You maybe thinking that since they got it from the government but they bought it at auction unlike the Television stations which were awarded the bandwidth for free.
>>
>> Also there is significant cost in the equipment to enable the usage of the bandwidth.
>>
>> You may be thinking of the variable cost of using an incremental portion of data. That is probably pretty low because there is a huge fixed cost of putting the bandwidth in place. However this doesn't cover the whole picture because if additional bandwidth isn't added as data usage increases then the service degrades and becomes slower for all users. This is what happened to AT&T when they introduced the iPhone and everyone complained about their service.
>>
>> Jay
>>
>> Sent from my iPad
>>
>> On May 8, 2012, at 8:41 PM, whiterabbit32 <whiterabbit32@gmail.com> wrote:
>>
>>> Bandwidth is pretty inexpensive to free for cell companies. They want to make bucks off us and we're willing to pay it.
>>>
>>> Alice
>>> Sent from my iPhone 4
>>>
>>> On May 7, 2012, at 10:24 AM, "N.A. Nada" <whodo678@comcast.net> wrote:
>>>
>>>> I was with Verizon for 6 years, and moved to AT&T 8 years ago. On how they handle their customers, one candy coats it and the other gives it to you dry. Verizon gave me free minutes when there was an issue, AT&T doesn't, but they give you rollover. Don't use your minutes with V, A has rollover minutes. One gouges you on text messages, the other follows suit.
>>>>
>>>> Free minutes or rollover minutes, how many of us ever used them?
>>>>
>>>> I have the unlimited Data with AT&T. For the last 3 years, I have recorded data usage. My usage has been between 30 and 300MB with one notable exception of 790MB accumulated during a 2 day drive from Denver to Portland, OR. Even with that I generally average below 90MB per month. I don't go over 100 text messages in a month and probably average about 30 a month in the same 3 years.
>>>>
>>>> Why do I stick with it? Because I am betting that something will come along that will cause me to dramatically increase my data usage. When I traveled for work, I watched more movies, when there was cell coverage I used more GPS service, that needed data to put the maps behind the pins or little car. Want me to switch away from the unlimited data plan, offer me a cheaper tiered plan that has rollover data.
>>>>
>>>> I would like to tell Mr. Stephenson to put his money where his belly-aching mouth is. Right now he has a cash cow, with his near monopoly. Show us verifiable data about all this data usage, show the individuals that are getting throttled or a watchdog group, these high usage numbers. Why are people below 2GB of data being throttled for the remainder of their billing period, when the excuse is that they are in a high usage area at a high usage time. Why doesn't it un-throttle when they change areas or usage decreases? Also have him explain how 2GB is unlimited? Whose fault is it if his lawyers had not written a better contract, one that allows them to cancel the contract for abusive use or the incorrect type of use, but they had better be ready to defend that in court because they have been granted a franchise of public property, the right to use those airwaves.
>>>>
>>>> If he wants us to give up our grandfathered unlimited data plans, offer us a generous rollover data plan. Most of us would never take advantage of it. In 3 years, I have dug into my rollover minutes for maybe 100 minutes. I'm on a 450 minute plan and average less than 200 used a month. I pay for and lost more minutes, than I have use every year that I have had a cell phone.
>>>>
>>>> And this crap about text messages, paying for them at these rates is obscene. That you have a choice of what 10 or 20 cents a text or a $20 unlimited plan. There is that mysterious word, unlimited, what does that mean? Either way the customer is getting gouged, with few exceptions. Bring back the tiered text plans.
>>>>
>>>> Stepping off the soap box.
>>>>
>>>> the other Brent
>>>>
>>>> On May 7, 2012, at 12:53 AM, MD wrote:
>>>>
>>>>> i guess if the iPhone is such a financial drain on him he could dump it. Then he'd probably see what a real financial drain looks like when a large segment of his user base bails. What he fails to appreciate is how many iPhones (with the required $30 or whatever data plan) he's sold to people who likely would've never bought a smartphone, many of them likely buying more than one (four so far in my household). How much was he making in 2006 when a basic flip phone or candy bar phone was the common device? He's got the large customer base in spite of the company's service. The products are the reason he has many of them. Lose the bellcow and see how many customers are left. Quit whining about how much more you should be gouging from the customers and give them reasons to want to do business with you. They don't owe you that business.
>>>>>
>>>>> I say that as a sometimes frustrated Cingular/AT&T customer of about 12 years.
>>>>
>>>
>>> [Non-text portions of this message have been removed]
>>>
>>>
>>
>> [Non-text portions of this message have been removed]
>>
>>
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