Commodity Prices

24 April 2004

Telecommunications companies simply don’t get it. There is so little differentiation between their services that any price gap between two providers will immediately make customers move to the cheaper service.

Memphis is a city that is so concerned about ”image” that only the cheapest provider gets business. You don’t want to be seen or heard at the country club if you’ve somehow managed to miss this week’s low-cost provider of anything. Cell phone service is this way. Long distance service is this way. ISP service is thought of in the same way.

Techdirt Wireless provides a glimpse of how it works in arena for high-speed wireless data.

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