Monthly Archives: July 2009

Cell phone fees are too expensive, here’s why…

I watched a Verizon TV commercial today. They were saying something about 80 million Verizon customers.

(1) The guy hits a pinata and thousands of candies tumble to the ground illustrating how many Verizon customers there really are..

(2) Another variation of the commercial is when he is in an ice cream shop and dumps a whole jar of sprinkles on the counter

STOP – LET’S REALLY UNDERSTAND WHAT 80 MILLION CELLULAR PHONE CUSTOMERS– Really means..

Consider what your cell phone bill costs.

The average cell phone plan is around $20 a month in my guestimate. That’s without bells & whistles and extended airtime. 80,000,000 cellular customers paying their $20 a month cell phone bill is $1,600,000,000.00 a month in cellular phone revenue.

That’s 1.6 billion dollars in service fees a month! By Verizon alone!  How many other cellular networks are in business?

Here’s my question:

What ever happened to supply and demand?  If there is that many of us using these networks, shouldn’t the cost go down once the demand is so high like this? Why isn’t there more competitors undercutting each other?

Why I can I buy a 99 cent cheeseburger, but I can’t get a $5.00 monthly cell phone plan?

The cellular towers are already erected. The connection to the regular telephone networks is already in place. Does it really cost 1.6 billion dollars each month to keep the system running?

Of course not.

I am reading this 2008 financial report correctly, they took in $97 billion dollars of consolidated revenues in one year.

I mean, that’s fine — a company should make a profit.

But at some point, when is profit becoming a little excessive?

While the economy is hurting, how many of these large organizations are still well off? I know many of us are running around trying to keep our bills paid and watch our spending.

Why can’t some of these larger corporations lower their prices temporarily until the economy picks back up again?

I guess I am expecting too much.

But $1,600,000,000.00 in sales each month!

WOW!  If only I could run a business that sold $1.6 billion a month in services.

For now, I’m going to try and pay my cell phone bill.

 

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Disclaimer: I don’t want to attract Goliath here. These numbers are estimates and forecasts, done by an uneducated consumer that doesn’t know better. Please enjoy this blog entry as a form of entertainment. Do not take my statements as being actual fact of anything. Feel free to research and investigate what you want on your own. Or better yet, leave a comment.