Thread: Contracts. Why?
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Old 01-09-2008, 01:47 PM
Todd Allcock
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Default Re: Contracts. Why?

At 09 Jan 2008 05:52:47 -0600 clifto wrote:

> > T-Mo offers 1000 minutes for $40- a more attractive plan for heavy

users- a
> > 700 min./month postpaid user, for example, pays $40/month instead of

$70 on
> > prepaid.

>
> The problem with that is that the user can't depend on the 700 minutes.
> After he hits the limit, the plan has a price more like $280 per month
> ($0.40 per minute).


Right- that's why I used 700 as my example- the plan actually includes
1000, but it's unrealistic to assume anyone would use all of their minutes
each month. My hypothetical customer leaves 300 minutes "on the table"
every month.

> So he's going to waste some finite number of minutes
> every month to avoid hitting the limit. I suppose it's a matter of skill
> or luck as to how few minutes get wasted.



Maybe- the point was that as long as his average minute cost is _less_ than
$0.10, it's a better deal (for him) than prepaid. That happens when he
hits 400 minutes on the $40 for 1000 minute plan.




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