- cross-posted to:
- technews@radiation.party
- hackernews@derp.foo
- cross-posted to:
- technews@radiation.party
- hackernews@derp.foo
T-Mobile switches users to pricier plans and tells them it’s not a price hike::T-Mobile: “We are not raising the price… we are moving you to a newer plan.”
The reason is retention. For a company that sells a service where they pay a single overhead (like maintaining a structure) it always makes more sense to lose a little money and retain a customer if prices are going down elsewhere.
That is to say if your internet plan is $80 and they have intel that a local competitor has started selling a similar plan for $60, it makes more sense to spend 3 minutes talking to an existing customer about lowering their bill to $60 rather than let that customer discover a cheaper plan and switch to someone else. If they let that customer switch they lose the whole $80 whereas if they just lower that customer’s price they only lose $20.
They are the sole owner of the fiber around here, you aren’t getting faster more stable internet for that price, no way.
I was paying about around $30 for gigabit, which is awesome here in the Czech republic. They dropped the price by $5 to $25.
I understand why companies would do it usually, but here, I honestly don’t see why they would. They’re offering great service for great prices