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Lack of 'value-add' options is why telecoms companies are loathe to sell broadband

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  • 30-10-2002 2:27pm
    #1
    Registered Users Posts: 344 ✭✭


    It seems to me that the nature of broadband (and FRIACO also) is that its a flat fee only. Thats it, pay your monthly fee, surf all you like, thank you very much. Beyond that flat fee there is not much they can gain.

    Take mobile phones for example. Telcos can screw you left right and centre. Cost for calls, cost for WAP access, additional 'services' like your horoscope, football results, lotto results, etc. So called 'value add' services. More like rip-off services!
    They can get a slice of everything even when thrid parties get involved with providing SMS services.

    Now with always on broadband, no 'value add' services for the telcos. Why? Cause you can go anywhere in the world for your services (usually free) - not bound by national mobile or phone networks. Free as a bird....

    Lack of incentive to sell broadband therefore. Once broadband reaches saturation point (will we ever see the day!!!), thats it. They can only keep increasing the bandwidth while keeping the price the same. They can compete with other telcos to steal customers, but thats all.

    Can anyone see any 'value add' services telcos can sell to their broadband customers?


Comments

  • Closed Accounts Posts: 6,718 ✭✭✭SkepticOne


    Are you talking about telcos generally or just in Ireland?


  • Registered Users Posts: 344 ✭✭DC


    Everywhere..... We are not alone

    They keep ramming things down people's throats. 'Bolt-ons' is the latest thing in the British TV ads. They sell you things that sound like great value, but really just help them empty your pockets a bit more.
    Mobile phone access has nearly reached saturation point, so the telcos have to try and sell 'add ons'.

    My point is I can't see that working with broadband. What can they sell us extra? Where is the incentive for them?


  • Closed Accounts Posts: 6,718 ✭✭✭SkepticOne


    I'd be happy with just plain affordable broadband. Telcos seem to be able to do this in other countries.


  • Registered Users Posts: 344 ✭✭DC


    I'm looking too far into the future. Its not like broadband will reach saturation point anytime soon!


  • Moderators, Business & Finance Moderators Posts: 3,816 Mod ✭✭✭✭LFCFan


    there is one plain and simple reason why we don't have affordable broadband in this country.

    €ircon are making a fortune from Dial Up access!


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  • Closed Accounts Posts: 6,718 ✭✭✭SkepticOne


    Originally posted by DC
    I'm looking too far into the future. Its not like broadband will reach saturation point anytime soon!
    Not in Ireland at any rate!


  • Registered Users Posts: 2,157 ✭✭✭Serbian


    You have to remember that generally, Broadband internet access is not the only thing that these companies offer. Companies like ESAT and Eircom have a whole range of services that will help them rake in the euros.

    One route they could go is by introducing reasonable caps on the service, which could be included as a value-add option. A 10GB cap would be fine for me, but many businesses would probably exceed this cap, thus giving the companies 3c a Megabyte or whatever they charge.

    I would consider it highly unlikely that the lack of value-add options is the reason telecoms companies are 'loathe to sell broadband'.

    Serb


  • Registered Users Posts: 344 ✭✭DC


    I think I'm still getting used to the idea that I can go online for a flat fee and the baxtards can't sell anything else to me - not bundled minutes, add-ons, or anything else. I'm free to surf as I please forever!

    Even at €90 per month...... :(


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