Quote:
Originally Posted by OldDutch
So here is a question. If you could get a plan for $12.50/month why on earth would you pay $50-$80 month?
I think a combo:
1. 3 year contracts lock in consumers.
2. The AWS technology and home model these guys use.
3. No iPhone.
I'm pretty sure those were the downfalls. Mobilicity are large volume to make money models and that does not work when either you can't switch for their first 3 years of operation, and you can't get the most popular handset.
|
Yep, those were all major issues that plagued Mobilicity.
I would also add a:
4. No subsidies on handsets
Funny thing about Canadians is they bitch about the contracts, but the majority of the average consumers bitch even MORE about paying $500+ for a decent phone. Virgin Mobile realized this fact too a couple years into operations and launched their own post-paid service (before Bell bought out Branson's share).
Mobilicity really lost customers looking for a decent handset when they realized that instead of getting a "free" or "$150" superphone, they would have to shell out $500 or more.
This really limited Mobilicity to the low-income, low usage customers. Buy a cheap $50 phone, get the $12.50 plan and you're set - unfortunately for Mobilicity having say, 200,000 users with 70% of them paying $12.50 (numbers pulled out of my ass) you are not going to generate the income needed to increase your network coverage, which leads to the whole issue Caramon alludes to RE: poor coverage/service in and out of home zones.
Just a downward spiral for them.