Home  ›  News  ›

Rural Carrier Association: Verizon Offer Not Enough

Article Comments  

all discussions

show all 11 replies

One Quick Question

VZW_insider

Jul 21, 2009, 10:44 PM
I just have one quick question regarding this whole ordeal... but before my question I just want to say, I'm not involved in any part of the industry that deals with roaming agreements, marketing budgets, exclusivity agreements, etc... I'm simply a retail employee whose been working in the industry for 10 years now, and yes, currently with Verizon whom I'm very happy both as customer and employee.

My question... If the rural carriers have their way and there is NO exclusivity period, are they prepared to funnel matching funds of Verizon or AT&T or Sprint into the manufacturers hands to market, develop, and produce these devices?

If not? Where's the incentive for the major carriers to keep funding new handsets? What happens to the phon...
(continues)
...
stevelvl

Jul 21, 2009, 11:40 PM
all excellent points
...
iori276

Jul 22, 2009, 1:39 PM
Yes well said, but look at verizon this past year, how much money have they spent buying networks ( alltel ), handsets, and LTE technology. And did they have to get a loan? or cut back? If i remeber correctly they didnt. I mean im all for buisness's being big, whatever floats their boat, i decide if they get my money, but isnt that a Tad bit to just be sitting on? i mean correct me if im wrong, just seems, a little Excessive to sit on that much funds.
...
VZW_insider

Jul 22, 2009, 4:47 PM
Fair enough,

But Verizon should be able to do with their finances as they please, just the same with ATT and Sprint. They shouldn't be required to spend money on marketing for phones to help other carriers sell.

If rural carriers wish to split the cost, then yes, everyone should get the phone the same time.

My two cents anyways...
...
Menno

Jul 22, 2009, 5:29 PM
More than likely they did take out a loan of some form, especially for the purchase of alltel. That type of thing is typically always done with some form of Credit, even if the company has the money on hand.

The school I went to builds everything on Credit. They earn enough that they could build what they wanted without resorting to this, but doing so would really stretch their budget and mean cutbacks somewhere (layoffs, reduced money spent on investment, etc) all areas where the company (or in this case school) needs to put money into, and will continue to do so once the building is up anyway. So rather than pay everything upfront, and go through the hassle of layoffs, they borrow it on Credit and pay it back really fast. This allow...
(continues)
...
asLeepLessman

Jul 22, 2009, 5:19 PM
A little Bias at T-Mobile? You havent mentioned them at all. Hmm.
...
iori276

Jul 22, 2009, 6:55 PM
I was just stating. I personally have verizon due to the merger, not to found of it but hey thats what contracts are for and work for sprint ( now was alltel but yea ) still seems they charge more for less and swim in money. not saying they are bad or evil, in fact they are quite smart, always 1 foot ahead of the game and i respect their ability to grow as quickly as they did. I personally thought their proposal was good but hey, im just a sprint dealer.
...
iori276

Jul 22, 2009, 6:58 PM
and tmobile doesnt count.

not where i am at least, everyday i hear about their service sucking, and im not even tmoible =/ i think they got great phones but wow, im tired of hearing complaints about them lol
...
asLeepLessman

Jul 22, 2009, 7:08 PM
Here in Reading P.A and my other store in Philly P.A we sell T-Mobile, Sprint and At&t in both stores. Its great working for all the companies at once because I (and my co-workers) dont have to bother with selling the company, we only need to find what the customer is looking for in a company and we can offer them options.

Unlike most locations which carry only 1 provider I dont have to talk about how much better 1 provider is over the other. I let coverage maps do things like that and I can show all coverage maps for all carriers. Then I can proceed to simply find the best for the customer and not worry about hyping up 1 provider over another.

I explain all this because at the end of each month....We sell more T-Mobile then any of the...
(continues)
...
CellStudent

Jul 22, 2009, 10:56 PM
Part of what makes non-exclusivity such a big deal is that carriers shouldn't be advertising handsets anymore. They will be forced to compete by leveraging their networks and pricing structures.

Part of the huge shift with non-exclusivity is that LG, Nokia, and Samsung need to start doing their own marketing and not relying on the carriers to do it for them.

When's the last time you saw an AT&T commercial that mentioned the iPhone? I don't believe I've ever seen one (but I'll be the first to admit I watch precious little TV). Every iPhone commercial I've seen recently has (at best) an AT&T logo in the fine print on the closing screen.

THAT is how advertising is supposed to work in a symbiotic economy. Let LG advertise their new ...
(continues)
...
VZW_insider

Jul 22, 2009, 11:39 PM
Very interesting take on the potential changes if exclusivity agreements advance. The only problem I see is that "the public" will always hold the carrier responsible for a flawed product or defects.

As a retail employee, we see multiple handsets come in day after day, and listen to complaint after complaint about how it's our fault their phones suck. True, we may have conditioned our customers to this, but the fact remains, unless the manufacturers want to open their own stores and eat the responsibility for warrantying product, the public perception will always be that it's the carriers fault.

In the end, if all the costs of marketing a brand new device are left to the manufacturer, handset cost will rise drastically.

What's ne...
(continues)
...
asLeepLessman

Jul 23, 2009, 9:28 AM
I agree with both of you on this...CellStudent had a very valid point. Yet, VZW_insider mentioned 1 thing that would hurt that point in a very vicious way.

VZW_insider said:
In the end, if all the costs of marketing a brand new device are left to the manufacturer, handset cost will rise drastically.


This is beyond true. See, Carriers buy it in bulk...Sell for under price and lose a small amount to lock you into the 2r. If you cancel contract, the deactivation covers the phone cost. What you pay a month has a small portion taken out to pay that phone cost and all evens out. However, if the manufacturers have to assume risk, they will want compensation for those risks. You will see alot more iphone type...
(continues)
...

This forum is closed.

Please log in to report a message to the moderator.

This forum is closed.


all discussions

Subscribe to Phone Scoop News with RSS Follow @phonescoop on Threads Follow @phonescoop on Mastodon Phone Scoop on Facebook Follow on Instagram

 

Playwire

All content Copyright 2001-2024 Phone Factor, LLC. All Rights Reserved.
Content on this site may not be copied or republished without formal permission.