IP: RE: Suicidal GPRS pricing puts 3G at risk

[David Farber <dave () farber net>]

> From: "the terminal of Geoff Goodfellow" <geoff () iconia com>
> To: <farber () cis upenn edu>
>
> typical Telco Thinking, re: GPRS prices.
>
> I really understood this mentality via a friend who lives in France and
> wanted to get a leased-line internet connection into his house.  Farce
> Telecom's pricing model? Take the cost of a regular dialup phone call
> between points A & B, multiply by number of minutes in a day and then
> multiply that by 30 (days) and there is the cost of your leased-line -- just
> the same as if you dialed up thru the PSTN for the same amount of time!!!
>
> Their thinking is that if we didn't do it This Way, there would be a "lost
> (revenue) opportunity".
>
> GPRS prices seem to follow the same "logic" -- how much does a circuit
> switched GSM data call cost per minute?  How much data can you push thru a
> circuit switched data call in a minute?  that that value and calculate your
> GPRS rates so you don't incur a "lost (revenue) opportunity" when your (so
> few) customers change their method of transport from circuit switched to
> GPRS!!
>
> =-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-
> geoff.goodfellow () iconia com, Prague CZ * tel/mobil +420 (0)603 706 558
> "success is getting what you want & happiness is wanting what you get"
> http://www.nytimes.com/library/tech/99/01/biztech/articles/17drop.html



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