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echo: cellular
to: JEROME ZELINSKE
from: CHARLES HUNTER
date: 1997-05-24 17:34:00
subject: Free cellular phones

JZ>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.
Later in your response, you concede that the cost of buying equipment 
for new customers is a consideration.  Yet, here you deny my asssertion 
that the phone is NOT free on the basis that the so-called "free" phone 
is not part of the equation when the deposit is considered.  I think it
obvious that the cost of that phone is, GENERALLY, considered in 
determining deposits or the level of credit required to establish 
service.  If it was "free" you would give one to anyone who walked in
regardless of whether or not they asked for or qualified for credit.
JZ>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.
More like the cellular companies extorting money from potential 
customers with which to expand their systems at a low rate of interest.
JZ>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.
I think that corporate accounts are not as high because corporations 
are generally better shoppers than the individual and have more options 
available.
JZ>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.
The cellular companies are making so much money ripping off John Q. 
Public that the "bugged out on" contracts don't hurt them.  They may
hurt the reseller who gets nailed for the commission; but the cellular 
company comes out smelling like a rose.
Charles
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