Hi George,
GE>The price only falls if the supply is expandable. High demand products
GE>are manufactured in larger quantity to increase supply relative to
GE>demand. Airtime minutes are a finite quanity. There are only so many of
GE>them in a day.
Sure, I understand, however if more people were encouraged to use the 
system because of lower rates, then there would be more profit. Read my 
reply to another person in this echo about the research which found that 
it would be much more profitable to have free calls all over this 
continent and charge a nominal rental, as the cost of itemised billing 
and metering is the greatest expense in modern-day telephony and would 
be better eliminated.
GE>ZM> The only reason for higher prices during the
GE>ZM> day for phones is because they can get away with it.
GE>
GE>Well of course, that's one way of expressing how capitalistic laws of
GE>supply and demand work. Any businessman with any degree of sense is
GE>going to charge what the market will bear. Phone companies are in
GE>business to make profits.
It's times like this where I wish I owned a phone company..... :-)
GE>Off-peak calls cost less because there isn't enough demand for off-peak
GE>airtime to justify a higher price. Raise the price any higher, and
GE>people would reduce their use of cell phones during off-peak times, and
GE>revenue would decrease. Anytime a business sets prices, it looks for the
GE>point on the supply/demand curve where total revenue will be the
GE>highest.
Of course, however old habits die hard. A lot of the phone company 
thinking is lagging a bit behind their technology.
GE>You need to do some more research into just what capitalism is all
GE>about. It is not about companies giving up profits just to be "nice
GE>guys". Leo Durocher summed up what happens to "nice guys" very
GE>succinctly.
GE>
GE>The simple fact is that if you want a cell phone that works, there has
GE>to be a profitable cellular phone company backing it up. Without
GE>profits, there would be no towers, no central switch, and no cellular
GE>service.
GE>
GE>There ain't no such thing as a free lunch!
I'm with you all the way there. I've always ben a devout capitalist 
myself, however the point I make here is that according to recent 
research done here, phone billing could produce higher profits and 
cheaper call rates - it's just that the companies won't implement the 
changes because of their conservatism.
An example. My cell provider has a flat call rate across the country. 
The other two have local and long-distance rates. This is pissing their 
customers off considerably. My provider is making oodles of money and is 
very profitable charging flat rates. The difference is in the mindset of 
the other two providers who will eventually have to change their system. 
When they do, they will discover that the loss they make on removing 
long-distance rates will be more than offset by the accounting and 
billing mechanisms which hav to keep track of the long distance calls.
Cheers - Ziggy
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