Comments on: Telecoms Spend Big To Snag Users http://gigaom.com/2006/07/18/telecom-spending-big-to-sang-users/ Trusted Insights and Conversations on the Next Wave of Technology Wed, 25 Nov 2009 12:24:41 +0000 http://wordpress.com/ hourly 1 By: Murali http://gigaom.com/2006/07/18/telecom-spending-big-to-sang-users/#comment-57768 Murali Tue, 25 Jul 2006 13:17:54 +0000 http://gigaom.wordpress.com/2006/07/18/telecom-spending-big-to-sang-users/#comment-57768 <p>A lot of this money must be spent on the upcoming data plans and Triple play bundles. And a significant portion on getting users switched from competitors, as the market for new users is 'almost' stagnated.</p> A lot of this money must be spent on the upcoming data plans and Triple play bundles. And a significant portion on getting users switched from competitors, as the market for new users is ‘almost’ stagnated.

]]> By: anon http://gigaom.com/2006/07/18/telecom-spending-big-to-sang-users/#comment-57766 anon Thu, 20 Jul 2006 03:21:00 +0000 http://gigaom.wordpress.com/2006/07/18/telecom-spending-big-to-sang-users/#comment-57766 <p>all these service providers have close to zero incremental costs to add users to existing networks/systems (excluding the big upgrade capex, which is best spread across more users). they have every incentive to gain incremental biz</p> all these service providers have close to zero incremental costs to add users to existing networks/systems (excluding the big upgrade capex, which is best spread across more users). they have every incentive to gain incremental biz

]]> By: Raindeer http://gigaom.com/2006/07/18/telecom-spending-big-to-sang-users/#comment-57765 Raindeer Tue, 18 Jul 2006 21:21:52 +0000 http://gigaom.wordpress.com/2006/07/18/telecom-spending-big-to-sang-users/#comment-57765 <p>I couldn't agree with you more. A law I formulated a couple of years ago says: Whatever you will save in production costs will be gobbled up by Marketing and Sales. In the Telco world this seems to be even worse. </p> <p>In the Netherlands a cableco called Casema with 1,3 million subscribers, €310 million revenue and €11.4 million profit was sold for €2.1 billion to Cinven/Warburg. That is €1600/subscriber Add the amounts they spent on advertising, add the introduction of digital tv, add the upgrading of networks for Docsis 2.0b etc. These guys spend well up to €2000 per customer and they actually hope to make a profit. </p> <p>However, in The Netherlands T-mobile announced today they will half the bonus per new subscriber they give to resellers like the Phone House. These bonuses could go up to €400/customer for a two year subscription. Now they hope all their competitors will too.</p> I couldn’t agree with you more. A law I formulated a couple of years ago says: Whatever you will save in production costs will be gobbled up by Marketing and Sales. In the Telco world this seems to be even worse.

In the Netherlands a cableco called Casema with 1,3 million subscribers, €310 million revenue and €11.4 million profit was sold for €2.1 billion to Cinven/Warburg. That is €1600/subscriber Add the amounts they spent on advertising, add the introduction of digital tv, add the upgrading of networks for Docsis 2.0b etc. These guys spend well up to €2000 per customer and they actually hope to make a profit.

However, in The Netherlands T-mobile announced today they will half the bonus per new subscriber they give to resellers like the Phone House. These bonuses could go up to €400/customer for a two year subscription. Now they hope all their competitors will too.

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