(keitai-l) flat rate vs. metered (was Question for the group)

From: M. David <davidm1_at_hotmail.com>
Date: 12/05/00
Message-ID: <LAW2-F82w4NBMmCa1kt0000a378@hotmail.com>
DoCoMo has said that they will initially keep 3G data charges expensive to 
restrict the number of people subscribing. So they are definitely aware 
that metered charging restricts use.

Packet charges are not really understood by the general public, does anyone 
outside the computer industry understand how much .1 yen per packet really 
is? I'm still having trouble figuring it out.
However, voice and monthly phone subscription charges are clearly stated, 
and seem to be the determining factor when getting a new phone.

Flat rate pricing is definetely as popular in Japan as anywhere else, All 
you can eat (tabehoudai) all you can drink (nomihoudai), flat rate calling 
(telehoudai) are all very popular.

If a provider swithed to unlimited local keitai to keitai calling, eg, AU 
to AU, this would really do well. - at least as far as market penetration.

> > >Flat rates are the simplest form of pricing.  Although they have
> > >generally been regarded as irrational, and economically and
> > >socially undesirable, they have serious advantages.  Consumers
> > >like them, and are willing to pay extra for them.  Further, flat
> > >rates are extremely effective in stimulating usage, which is of
> > >advantage in a rapidly growing service like the Internet.

I dont make anything from the packet charges paid to DoCoMo :<
The only way independent content providers are making money right now is 
from subscription fees or banner ads.

> > personally, i am a fan of metered pricing since it gives content
> > providers a way to make money without having to resort to banner ads.
>


David M.

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Received on Tue Dec 5 05:19:14 2000