Wirelessnorth.ca with a great post that shows where your $75 monthly wireless bill goes (hint: lots of profit).
Where Your Wireless Bill Goes
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Wireless Gree..er..Profit.
I’ve always said Rogers could cut their rates in half, and no one would go hungry in that company, but their greed supersedes all else. It’s because of their unreasonable rates that I passed on the iPhone, even though it would be exactly what I need.
I\’m no fan of Rogers (or a subscriber) but this analysis is distorted. There are different ways of calculating gross margin and we don’t have enough info here to figure it out, but it doesn’t really matter as it’s the net that matters. The net looks very good but as the article points out, debt and investment fluctuate. Also, for years Rogers lost a ton of money as it built up its wireless operations and if you look at profit over 10 years, the picture isn’t as rosy.
rogers poor rogers
ya it is so bad fo rrogers he boought the blue jays baseball team….
LIke give me a break
here
i can go get a seedbox in europe (100MB)and pay about 30$-40$ for 3000 GB
thats 30 cents per GB
and what do i pay TSI for 200GB at 5 megabit speed
30$ so in europe i am getting FIFTEEN TIMES MORE VALUE.
and TSI is the only provider i know that does 200GB caps and unlimited( to get that you need two lines effectively making you ten megabit and would get you about 2 terabytes if ran out to the max) and would cost aorund 100$
in fact 10 years ago when rogers started up i was getting 700Kbytes down and 400Kbytes upload.
UNLIMITED for about 40$ a month
What do you get now?
600-650 down and maybe 45-100 UP
and it would cost from 55-75$ and have a 60 GB cap
16 times more then europe costs
This is just mindless corporation bashing. Companies maximize profit. They are legally obliged to do so (their boards would get sued by their shareholders, otherwise).
Also, claiming that 90% is a high gross margin for a *service* is ridiculous. Most services are high margin, with expenses all front-loaded in overhead capital costs.
If the problem is that 3 wireless carriers are not providing a sufficiently competitive environment, then we have to look to the CRTC and the Competition Bureau to ensure there is opportunity for new competition to arise. In the meantime, bashing the companies for making a lot of money is a lot like bashing pine beetles for eating too many trees.
Mindless corporation bashing
@PorkBellyFutures: Don\’t even get me started on pine beetles.
PorkBellyFutures,
Of course companies maximize profit. But in this case we are talking about virtual monopolies that are overcharging, and when complaints are made to the regulating body, they are told it is a free market. Free to plunder.