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State of California

canddmeyer

Sep 9, 2005, 4:33 PM
Posted today in the Sacramento Bee's business page, Cingular-ATT lost a $26,000,000 - 40,000 line contract to Verizon & Nextel. Cost savings were the noted factor in making the switch.
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ralph_on_me

Sep 9, 2005, 5:04 PM
Do you mean Sprint & Nextel? For them to be any cheaper than Cingy Sprextel had to cut them a big discount, which means they're losing money.
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lil_wayne_1029

Sep 9, 2005, 5:32 PM
ok so why does this count for anything? Cingy is still one of the top 3 carriers.
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jcoberg10

Sep 9, 2005, 10:24 PM
wait untill the last of the contracts expire and the new totals come out cingulars gonna take a dive
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maverick96

Sep 10, 2005, 1:53 PM
Look at all the cingy fans back peddling it's hilarious!! 🤣 🤣 Face it cingy service sucks huge compared to verizon, well obviously california said goodbye!!! 🤣 🤣 Good job california hopefully any other states out there with a cingular contract will follow suit and dump the inferior service and go with something that actually performs!!!
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ralph_on_me

Sep 10, 2005, 11:09 AM
It matters because when you bid for large corporate you're giving them a discounted rate for their service agreement. This means every user on this account are using the same network and services as people who pay the regular price. As a company, would you rather sell to people who pay full price or someone who only pays half? As a customer, would you like knowing there are corporations in your area who are relying heavily upon their cell phones and may be filling up the circuits when you need to call someone AND they're paying less than you?

Corporate discounts drive up the cost for regular users.
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crazyeaglefan236

Sep 10, 2005, 1:25 PM
Corporate discounts also drive in business. Here is an example. I have a customer who gets his phone paid for through FedEx. But because he is on a certain carrier, all his family buys srvice throught that carrier. Losing a corporate account means more then just those particular lines. It also means all those add on lines that families get. So in short...it reall hurts a company to lose a contract like that...

Funny though how Cingular goes after people that are high risk for churn. Hence thier high churn rate compared to other carriers. Also they go for distributors like RS who has a high churn with VZW. And they are apparently paying RS some ungodly commission rate, so their cost per net add will be off the charts. But they wo...
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maverick96

Sep 10, 2005, 1:57 PM
crazyeagle I hear everything your saying but unfortunately the cingular zombies are in a trance just like they are when the quarter results come out. They back peddle and make excuses, like those consumer reports are bias and they will lose money gaining 40,000 customers. Very silly if you ask me but, oh yeah rollover is cool if your too stupid to pick the right plan.. 🤣 🤣 🤣 🤣 🤣 C-Ya all at the end of the next quarter 🤣 🤣 🤣
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ducker007

Sep 10, 2005, 3:06 PM
Why the hate? You don't have to be in the Cingular forum. And I don't consider myself to be a Zombie. I switched to Cingular from Verizon because the service and costs were better where I live and where I need it compared to Verizon. That doesn't make me stupid. I guess I just can't understand all the bashing and name calling.
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crazyeaglefan236

Sep 12, 2005, 4:54 PM
I wasn't bashing anyone. Just stating the facts. I have had people come in looking at VZW and have to pay the high deposit level. I call VZW to see what is up because the customer said they didn't have to pay a deposit with Cingular. The Credit and Activation rep takes one look at the credit bureau and says, "Um...let Cingular take them." I ran into the same customer at an auto dealer questioning as to why no one will approve them for an auto loan. I know the finance manager personally and he wouldn't tell me details, but basically no bank would finance them a hub cap. But Cingular will give them a cell phone. And then wonder why their churn rate is so high...

Oh, and since Nextel has dropped their deposit levels, I have been getti...
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ralph_on_me

Sep 12, 2005, 4:59 PM
That's really weird. In our area Cingular has the highest deposits all around. People can go to Sprint or T-Mobile and pull up a $150 deposit and ours comes back with $750. Personally, I like having high deposits too. Like you said, it keeps churn low.
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maverick96

Sep 10, 2005, 1:54 PM
Oh boy another back peddling post!!
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ralph_on_me

Sep 10, 2005, 2:59 PM
If I was backpedaling I would be reversing a statement I already made. Read it again, I didn't do that.

If I owned a company I'd be more likely to tell a corporation where to stick it if they were whining about cost. All the corporation cares about is how CHEAPLY they can get service for, not the quality. They express their need for service, and other companies put BIDS on service. In this case, wirelees carriers tried to underbid their competitors after figuring out just how low they could go. They didn't drop Cingy because of service, they dropped them because Cingy wouldn't lower their prices. They told them where to stick it, just like I would've.
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maverick96

Sep 10, 2005, 3:02 PM
Thanks for clarifying just how dumb cingular is to give up $26,000,000 or 40,000 customers
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ralph_on_me

Sep 10, 2005, 3:38 PM
Anytime.

Notice that the $26,000,000 wasn't stated as profit. The $26,000,000 was probably the bid. Sound like a lot? My company makes $1,000,000 a month without residuals. You'd also have to subtract the cost of service to the company from the bid.

Look at it on the business side of things mav. It's not about who is better, it's about the money. If you're not making enough from the deal, then you've gotta bail on it. Your profit margin is what matters.
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maverick96

Sep 10, 2005, 4:04 PM
I'm sure they are making money on it. If not then why did cingular even bother to have the contract with california before? Why did they attempt to try and keep it? Of course verizon and sprintel are making a profit not to mention just the advertising it will give both companies because people will see that if california trusts those companies to work then I guess I can too. People see surface matters when it comes to cellular and having a contract with the state not only boosts both companies revenues but it also bossts free advertising! Trust me when I say neither verizon cingular nor sprintel would have bid if it wasn't worth it, to even think differently is ignorant.
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ralph_on_me

Sep 12, 2005, 12:19 PM
Of course they're making "a" profit, but they're making "less of a" profit then they would off of your average consumer. Currently, Cingy has the largest number of customers. That's likely to change, but until they're lower they don't need to cut their rates to bring in numbers. They're also still trying to recoup the expenses of the ATTWS purchase. The issue with California dropping Cingy is that Cingy didn't find it profitable to lower their rates for them. Other companies did, which is good for them. This whole process has nothing to do with quality or service.
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ducker007

Sep 10, 2005, 3:12 PM
Verizon and Sprint Nextel are sharing it. Verizon will be the main supplier of non-walkie talkie phones, with Sprint Nextel the main provider for walkie-talkie devices.
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dca

Sep 12, 2005, 12:37 PM
That seems odd, Sprint could've supported both on either side. ie: Sprint = Phones, Nextel = DC... I wonder if it wasn't based so much on price but on carrier. Didn't California have some problems with Cingular a while ago? Something not stated properly in their terms & conditions and now T&C is different in Cal/Nev vs the rest of the US???
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ralph_on_me

Sep 12, 2005, 12:49 PM
Font size. California law requires the font size on contracts to be no smaller than a certain size (I think it was 10). We made bigger contracts and that was solved.
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