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From: john@mojave.ati.com (John Higdon)
Newsgroups: comp.dcom.telecom
Subject: Re: Cellular Daily Roaming Surcharge $4.00 per Day?
Message-ID: <14442@accuvax.nwu.edu>
Date: 7 Nov 90 19:31:17 GMT
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X-Telecom-Digest: Volume 10, Issue 797, Message 2 of 10


Much has been said concerning various cellular operators and what
appear to be outrageous charges. Quite honestly, most cellular charges
are way out of line. However, what you are seeing is the marketplace
at work.

Demand for cellular service is greater than the wildest expectations
of the developers. Every trick in the book is used to handle the flood
of customers and the resultant traffic -- from multiplying the number
of cell sites to (and here's the nasty part) keeping the price high
enough to discourage casual use. A number of operators have requested
rate reductions from the appropriate regulatory agencies and have been
denied due to the heavy demand. Does this mean that McCaw, PacTel,
GTE, and the like are getting rich? You bet! If you have a product
that is mega-popular, you make money.

At the moment I am roaming in the much-maligned LA area PacTel system.
These are the slimes who charge for call attempts even if it's the
system's fault that the call bombs. They charge roamers $0.70/min
during the day. BUT, they have no per-day roaming charge. This means
that I can activate FMR daily without charge, and pay only if I get a
call. I find this preferable to the instant $2.00/day charge that is
tacked on to a single call in many systems.

But don't expect rates to come down any time soon. Those who find the
system convenient and helpful will use it; those who do not think the
charges are worth it will not. The providers are NOT hurting for
customers. When someone complains that the charges are outrageous,
he's right. And when he refuses to subscribe, that's natural selection
at work.


John Higdon <john@mojave.ati.com> (hiding out in the desert)