Losing Revenue?

By | 2012/02/22

Have a look at this article on the BBC site.

There’s just so much wrong. The mobile telephony companies are toting up projections of profit from SMS and MMS messaging and seeing a shortfall as a “loss”.

“I think it’s a growing threat which is manageable through the right tariffs and the right costing,” Mr Barford added.

“People are still using the mobile networks to communicate – and they’re willing to pay for that.”

Yes, people are wiling to pay to communicate, but they are also going to look to find the best available methods. That evaluation is going to include cost. And the pricing telcos have artificially placed on SMS and MMS messaging simply is uncompetitive with other technologies now.

The buggy-whip manufacturers experienced a “loss of revenue” with the advent of the automobile. That doesn’t mean they deserved to continue getting it, no matter what “tariffs and right costing” they might have contemplated. The only difference here is that the buggy-whip manufacturers were not also the only people selling and servicing automobiles.

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