Dish may diss Boost's pre-paid customers in T-Mobile-Sprint push
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Dish plans to drop millions of Boost Customers
- Thread starter Juan
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Sounds to me like Adderton is butt hurt Dish maybe isn't going to include him in their plans and so now he's going to try and sink the ship. He hasn't been in on meetings at Dish so how would he know what they are doing and planning.
What an ass!
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It makes since to maximize profits and get rid of unprofitable customers
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Yes and No.
There is a fine line between dumping customers who don't pay bills and ones that give you a reliable if small profit. See the Welcome Pack, Sling, Existing Customer Offers, etc. while the competition stops negotiating on price and shills inferior products for more money. Dish/Sling is gaining customers (overall) and losing satellite customers at a much slower rate than AT&T. The thing with prepaid is, it isn't like people can get away with not paying their bills. If they do, the service turns off right away. I honestly can't imagine what Adderton is referring to exactly, except maybe closing stores, so some number of people wouldn't be able to pay in person?
The Boost CEO is worried he may lose under the deal, he could care less about the customers.
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He is not their CEO...just the founder who wanted to buy it back
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How are prepaid customers unprofitable? Are you suggesting Dish will get rid of Prepaid and move their customers on Postpaid? I thought bringing cash into the company on a daily basis was better then waiting for customers electronic or paper payments. I guess we will see how this plays out.
I read the article..but yes if charge a customer less than it costs YOU to provide service prepaid can be unprofitable
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Apparently Verizon sees profits in low cost prepaid subscribers. Have you looked at their relatively new "Visible" branded service? $40/mo for unlimited talk, text, and data, including hotspot data. And that price can drop to $25/mo with their new "Party Pay" incentive. There are some limitations with the service to be sure, but you can bet they wouldn't have put it out there if they didn't expect to make money on it
Visible is a new business model with no brick and mortar presence and some other efficiencies that Boost doesn't currently have. I am sure margins are not high, but the prepaid market is big enough to make it worth Verizon's while. Of course, given how mercilessly Verizon deprioritizes MVNOs, I am not sure why anyone would use a prepaid service on Verizon's network.
Visible is completly online and outsourced customer service to the cheapest vendor...I never said prepaid was unprofitable...I said if boost had unprofitable plans ..dish would discontinue them
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If boost was a huge profit center they would not be selling it at a discount to dish...charlie likes to maximize profits so some plans with slender margins will get cut
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There are probably no prepaids that are huge profit centers. I can see them changing the available plans, but that is not the same thing as dumping customers.
Just wait and see if the premise in the article is correct
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