<G*'s main problems are:
- high phone and accessory cost,
- slow roll out, and
- stealth marketing,
not its per minute pricing.
These three problems should be fixed first. Then, if demand does not kick in,
lower per minute prices. It's bad management to use lower minute prices first.>
Slow roll out is the big problem. The lack of roaming is a disgrace. I agree, the upfront equipment cost is a serious disincentive to a lot of people so the cost should be buried in the minute prices, or a monthly charge, to reduce the barrier to entry. I also agree the stealth marketing with ignorant salespeople and dodgy web site information on coverage etc is a big problem too.
When somebody goes into the place selling the phones and has to be determined to get the salespeople to admit they have phones for sale and then to have the sales people say they are too expensive, too big and generally not worth buying, we are not going to succeed.
Those problems should have been fixed first. But simultaneously, since they haven't been and time is running out, the minute price should be set at a market-clearing price which would stimulate demand and salesperson interest and learning and stir things up and make it happen faster.
Yes, it's been bad management. Bad market research too. There are NOT 40 million people lined up waiting for the Globalstar phones at $2 a minute and $1500 a handset with a $40 a month charge plus a connection fee, plus a big bundle for a car kit...
Mqurice |
