Comment Re:Portability in action (Score 2, Insightful) 184
Wrong. In a market where people will use all possible tricks to switch mobile phone providers at the drop of a hat, especially when they want to switch to a new mobile phone model, it's actually cheaper to subsidise the customer that stays:
You pay the same amount of subsidy on the phone as for a new customer, but you don't have all the acquisition costs, since the guy is already with you.
New customers that switch to your service and get a new phone and then bugger off after 6 months or a year only end up consting you money, since most likely they didn't subscribe to use the service, but only to score a new phone...
In the long run, you can actually attract customers if you build up a rep for good service and pampering your established customer base with new gizmos on a regular basis. That can, and will, make ppl switch to your service over someone else's. And why move away if you can get a new phone without the hassle of switching, carrying your "portable" number along etc?
Think about it.
You pay the same amount of subsidy on the phone as for a new customer, but you don't have all the acquisition costs, since the guy is already with you.
New customers that switch to your service and get a new phone and then bugger off after 6 months or a year only end up consting you money, since most likely they didn't subscribe to use the service, but only to score a new phone...
In the long run, you can actually attract customers if you build up a rep for good service and pampering your established customer base with new gizmos on a regular basis. That can, and will, make ppl switch to your service over someone else's. And why move away if you can get a new phone without the hassle of switching, carrying your "portable" number along etc?
Think about it.
