Data rollover and the CPA

[marine1]

all I am saying and most sane rational honest people would agree is that data is way overpriced and this is confirmed by the insane profits you guys are making. I would be happy to have a data bundle that costs way way less and expires in 30 days. I don't always buy bundles so need it for a month only and need it for a reasonable price which the networks have shown they are not interested in.

 

[rwenzori]

So, you've bought a 1GB bundle and you want to use it at 1Mb/s. The network must now be provisioned to deliver that speed to you. That implies the network must to be configured to deliver the equavalent of 324GB per month to you and must 'buy' that capacity from its suppliers. Yet you only pay for 1GB of that.

(The above explanation also highlights the issues with uncapped services, BTW.)

But with unknown usage patterns it gets even worse. Every month you don't use your 1GB (but just might), the network should in theory up its capacity just in case you do. So the network must increase its spend because you might just use the data at some point. As you can see, this becomes a real issue if you have millions of customers on your network and is te basis for the potential price increase if roll-over had to be extended.

I don't accept that the usage patterns are unknown to your company. What really would happen, I would think, is that most users would use data at the same habitual rate roughly, but won't be queueing up to spend more money with you quite as frequently. Which might slightly reduce your superprofits. So sad, too bad. You could also spend some of said superprofits to provision your network capacity up by about 10% to allow for some fluctuation in usage patterns. Not the end of the world - you'll still eat.

 

[Mephisto_Helix]

I think many more people would agree with the Cell companies on this one if their profits were not so massive. One tends to not feel much of anything when a company complains about something but they have profits in the ultra millions. If you want people on your side in cases like these, stop milking them for everything you can. Your greed will catch up one day .......

 

[marine1]

You mean ultra billions

 

[Fuma]

If there is a demand for any product and consumers are willing to pay for it, then producers can charge whatever they want.
Competition is key, and as long as there is no price collusion, then it is economics basics.