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 * Quote from CHARLES HUNTER to JEROME ZELINSKE dated 05-22-97.
JZ>Yes the phone is free.  I does not matter if someone comes in with a phone
  >of his own already, the carrier does the credit check, the deposit (and 
ot
  >everyone needs one) is for the airtime not the phone price.
CH> Understand what you are saying; but the phone is not "free".  I don't 
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CH> buy that the fact that they are handing over a cellular phone worth
CH> hundreds of dollars without taking that cost into consideration 
CH> somewhere in the deposit formula.
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Yes the phone is free.  The rates and deposit are the same wheather
you get their phone or you inheireted the phone when your great-uncle
died.  I think the key word is 'deposit'.  You get it back after 6 mo
of paying your bills on time.
Do I think the deposits are on the high side?  Yes.  Why, because
even honest well-meaning customers can loose track/controll of the
amount of time used, and not be able to pay the bill in a timely
fashion.
Do I think the fees for the air-time are on the high side.  Yes.
Because of a)the people who duck out on their bills and b)the general
cost of doing business, including buying the phones for new customers
and c)luxury items have always been pricey.
The rates for corperate accounts are nowhere near as high.  Business
use is closely assesed as to cost effectiveness by the user(business).
If they payed the same as John Q Public, it would not be profitable.
The cell companys may not have a big profit margin in the 'real'
rates charged to businesses, but the businesses can then make cost
effective use of the system and remain loyal, steady costomers,
ensuring an income base for the cell carriers.
Whereas the casual (yes luxury) use by individuals can be rate hiked
to whatever the traffic will bear.
It has long been my contention, that the phone should be purchased
directly, and then the service is priced on its own.  Individual rates
will still probably be higher because the cost of the shorter, 'some-
times bugged out on', frequently not renewed contracts.
 -- SPEED 2.00 #2782:
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