Originally Posted by abc905
Well that and the fact that everything is charged as if you have a subsidized, contracted, device. How else can they get their fabulous 50% profit margins?
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Well most businesses try to double their money, which means 50% profit. That's just an easy way to ensure you stay in business. Of course they have to make big profits in some areas to cover other areas that have zero profitability. If you look at carriers' financial statements, their net profit never equates to 50% of net revenue. It all balances out in the end.
But seriously, look at a country like Australia. It's a "first world" country by even the most conservative definition. Go to Vodafone's or Telstra's website and look at their coverage maps. Those are two of Australia's biggest carriers. See what nationwide coverage means to them? Americans would never stand for coverage that spotty. We demand fast LTE coverage anywhere we go, and we pay the higher rates that accompany it. It's not complicated. There are cheaper alternatives for the more budget conscious.
In America, when it comes to wireless service, you get what you pay for. There is no other network anywhere in the world that can match AT&T or Verizon in terms of reliable coverage, fast data, percentage of population covered, and pure geographical coverage area. Simple as that. That type of wireless coverage doesn't come cheap, no matter what country you're in.
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