AT&T: Device Subsidies Likely to Go Away
I also found this line funny
>>"When you're growing the business initially, you have to do aggressive device subsidies to get people on the network," said Stephenson. "But as you approach 90% penetration, you move into maintenance mode. That means more device upgrades. And the model has to change. You can't afford to subsidize devices like that."
So, is ATT in maintenance mode or growing the network?Because if they're in maintenance mode, then that means the network has already paid for itself and the price of plans should decrease dramatically.
But if they're still growing the network, i.e., rolling out LTE, LTE-A and other future technologies, then it sounds like they still need " aggressive device subsidies to get people on the network".
So, is ATT in maintenance mode or growing the network?Because if they're in maintenance mode, then that means the network has already paid for itself and the price of plans should decrease dramatically.
But if they're still growing the network, i.e., rolling out LTE, LTE-A and other future technologies, then it sounds like they still need " aggressive device subsidies to get people on the network".
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Getting rid of device subsidy doesn't mean that you aren't 'growing' or enhancing the network. Part of maintenance includes system upgrades, so rolling out LTE and LTE-A is still on the agenda for AT&T.
When the carriers are paying a large amount from the manufacturers for the devices and selling them for less, they are essentially gaining the money back from the higher cost plans in place.
AT&T just unveiled new plans last week for customers who purchase on the AT&T Next program or for customers who are outside of their contract. These new plans allow customers to get a cheaper MRC.
AT&T is moving towards a concept that European and Asian countries have had in place for years. Customers buy the phone at retail price, and you get...
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When the carriers are paying a large amount from the manufacturers for the devices and selling them for less, they are essentially gaining the money back from the higher cost plans in place.
AT&T just unveiled new plans last week for customers who purchase on the AT&T Next program or for customers who are outside of their contract. These new plans allow customers to get a cheaper MRC.
AT&T is moving towards a concept that European and Asian countries have had in place for years. Customers buy the phone at retail price, and you get...
(continues)
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>>Getting rid of device subsidy doesn't mean that you aren't 'growing' or enhancing the network
Not my words, but ATT's. Tell that to them.
>>Part of maintenance includes system upgrades, so rolling out LTE and LTE-A
Hardly. Building out an LTE network is building out a brand new network. It's not the same thing as an upgrade. This would fall under the "growth" phase not the "maintenance" phase
>>AT&T just unveiled new plans last week for customers who purchase on the AT&T Next program or for customers who are outside of their contract. These new plans allow customers to get a cheaper MRC.
Yea but what is average total cost for service and device over the course of a year. I'm willing to bet its more.
>>AT&T is moving towa...
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Not my words, but ATT's. Tell that to them.
>>Part of maintenance includes system upgrades, so rolling out LTE and LTE-A
Hardly. Building out an LTE network is building out a brand new network. It's not the same thing as an upgrade. This would fall under the "growth" phase not the "maintenance" phase
>>AT&T just unveiled new plans last week for customers who purchase on the AT&T Next program or for customers who are outside of their contract. These new plans allow customers to get a cheaper MRC.
Yea but what is average total cost for service and device over the course of a year. I'm willing to bet its more.
>>AT&T is moving towa...
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They aren't talking about the network, they are talking about the CUSTOMERS.....he's talking about 'maintaining' customers.....i.e. making sure they don't switch to another carrier....
Let me put what he is saying in another way..
Back when we were first introducing cell phones for the first time ever, we were focused on trying to convince people who had never had a cell phone to buy their first ever cell phone, and the way we did that was by giving them free stuff....now everyone and his brother has a cell phone and there are no new people to sign up....the focus in on trying to retain customers.....and since the way we attracted them in the first place was by giving them free stuff, the longer they are customers the more free stuff t...
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Let me put what he is saying in another way..
Back when we were first introducing cell phones for the first time ever, we were focused on trying to convince people who had never had a cell phone to buy their first ever cell phone, and the way we did that was by giving them free stuff....now everyone and his brother has a cell phone and there are no new people to sign up....the focus in on trying to retain customers.....and since the way we attracted them in the first place was by giving them free stuff, the longer they are customers the more free stuff t...
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And what people may fail to realize is that the 'we' you speak of isn't AT&T: it's the wireless industry as a whole. Just because this article is about AT&T, the same holds true for Verizon, Sprint, and every other carrier that offers contract subsidies.
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You're conflating the issues. I've seen you rant about this on another thread. What you're talking about are customers who want a free phone outside of the warranty or renewal period, and who complain until they get one. You're also frustrated by ATT's policy of caving to those customers. And it is really that policy which you believe hurts profit margins. Unfortunately, ATT's policy of giving away free stuff whenever a customer demands it has nothing to do with subsidies which are supposed to have the price of the device built in. So, you're entire rant (however justified) is completely irrelevant to this topic.
But I will address one particularly erroneous statement.
>>these fricking greedy parasites will suck us dry...
ATT is mak...
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But I will address one particularly erroneous statement.
>>these fricking greedy parasites will suck us dry...
ATT is mak...
(continues)
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This forum is closed.
