Bundles come with cold logic


Competition is getting serious and that means prices are going... up? Well, they are in some states as major telcos are exploiting proof of increasing competition to give them pricing flexibility, which in some cases they are using to raise prices. A story in the USA Today today (I'll love saying that) reports on how AT&T and Verizon have sharply increased prices for some calling features, such as caller ID.

Competition is supposed to encourage customer-friendly markets, but if incumbents have figured out a better way to make money and capture customers, they can turn the logic of more competition/lower pricing on its head.

The new logic is that if you don't like high individual feature prices, then you can instead buy a service bundle which allows you not to worry about the disturbing math involved in ordering special features ala carte. You can instead get multiple services at a price lower overall than you would pay for services individually--because haven't you heard the prices for individual feature are going up? Whether or not you wanted multiple services from the same provider is immaterial.

If you don't get that logic, you can buy from someone else. These telcos only want the customers who understand it.

- Dan

For more:
- check out this story in USA Today 

Suggested Articles

On Monday, AT&T acknowledged for the first time that DriveNets is indeed providing core-networking routing software for its next-gen core network.

Microsoft is taking direct aim at telcos by announcing Azure for Operators, which includes a carrier-grade cloud platform and edge compute capabilitie

Rogers Communications really, really wants to get its hands on Cogeco, despite being told there's no interest to sell from Cogeco.