The 3 Ways to make More Money in Cellular
We all know that they try and lock us into 24 months fixed subscription mobile phone plans, and then upsell us into new services, but double jeopardy, they know we are not entering into long term contracts, and so they still need to get their RPU (rev per user) and thus profit up, and are secretly strategizing how to beat us at our auction bidding pre-paid game. I think freerangeinc.com will do very well here with their Wireless RSS Reader so people can read their favourite sites on their phone. From the Entrepreneur RSS Channel :
"Why not make money on three areas of the market rather then one? For a little background, carriers make money in three ways: 1) Data 2) as a billing company 3) as a content retailer. There is nothing wrong with the triple dip and as an Ayn Rand capitalist, good for them. However, this model is greatly limiting growth in the mobile world. Is it not obvious that the carriers would make MORE money if they incentivized 3rd parties and content owners by taking a smaller share of the revenue? Would Visa and MC make more money or less if they raised their rates from 2.2% (+$.30) to 35% or would people use cash instead. Would porn and gambling make money for the carriers if they 'opened' their network or would users shun what they have embraced on-line. I think it is fair to say that it is NOT greed that drives the carriers decisions. So what can it be....CONTROL !" interesting, subscribe to the Entrepreneur RSS Feed (which I have no direct share in, but think spliced category based feeds are the way to go ! eg soccer channel, nasdaq channel, etc)
Control! It is the same reason that the music companies railed against Napster back in the day.
"Why not make money on three areas of the market rather then one? For a little background, carriers make money in three ways: 1) Data 2) as a billing company 3) as a content retailer. There is nothing wrong with the triple dip and as an Ayn Rand capitalist, good for them. However, this model is greatly limiting growth in the mobile world. Is it not obvious that the carriers would make MORE money if they incentivized 3rd parties and content owners by taking a smaller share of the revenue? Would Visa and MC make more money or less if they raised their rates from 2.2% (+$.30) to 35% or would people use cash instead. Would porn and gambling make money for the carriers if they 'opened' their network or would users shun what they have embraced on-line. I think it is fair to say that it is NOT greed that drives the carriers decisions. So what can it be....CONTROL !" interesting, subscribe to the Entrepreneur RSS Feed (which I have no direct share in, but think spliced category based feeds are the way to go ! eg soccer channel, nasdaq channel, etc)
Control! It is the same reason that the music companies railed against Napster back in the day.
posted by redbarren at 7:27 PM
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