TIP: Click on subject to list as thread! ANSI
echo: aust_ads
to: Peter Pilbeam
from: Bill Grimsley
date: 1995-06-07 15:48:12
subject: Discount Calls

Peter, at 11:25 on Jun 05 1995, you wrote to Bill Grimsley...

PP> union that I'm in is offering a 25% discount on your phone bill. 

BG> Interesting.  The highest discount I currently know of is only 15%.

PP> Interesting after writing this message I re-read the information
PP> on the discount scheme and it says that at the present time the 
PP> discount stands at 21% and when there are more people using the 
PP> system then the discount will be 25%

Yeah, it's a real dog's breakfast at the moment, and after reading between
the lines during Frank Blount's interview, I'm not sure that things are
going to stabilise any time soon either.

BG> Given that a 1 cent (i.e. 4%) reduction per 25 cent call fee 
BG> results in a loss of revenue to Telstra of $12 million (source: 
BG> Frank Blount, ABC-TV), a 25% overall discount equates to a loss in 
BG> the order of $75 million, not at all what I'd call a trivial amount. 

(I transcribed the wrong info initially, and having since corrected it
above, the right figures are even more amazing).

PP> What show was that on? The ABC seem to have a knack of getting
PP> some informative information out. 

The Press Club luncheon which was televised in part by the ABC last week.

PP> Telstra must feel that a system like this will give them the edge 
PP> against Optus.

They seem to think so.  I have long-term doubts myself though.

BG> actually, I pay on the freecall number via credit card,
PP>                                            ^^^^^^^^^^^
PP> Now that can cost!

If used correctly, they can generally _save_ you money.  :)

BG> the point, which is that paying monthly instead of quarterly MUST 
BG> cost more in the end. 

PP> That would depend on how they would charge for the rental on your
PP> phone etc. If it is just caculated over the year to be the same 
PP> then you shouldn't have to pay any more.

You're missing the point, Pete.  Sure, rental is paid in advance, so the
shorter the period, the cheaper it is in real terms (assuming a directly
proportional rate), but accrued call charges will cost less if you can pay
three months in arrears, rather than just one month.  It's fairly academic,
given the minute savings invloved, but it is still cheaper nonetheless.

Regards, Bill
@EOT:

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