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Technology Stocks : Qualcomm Moderated Thread - please read rules before posting -- Ignore unavailable to you. Want to Upgrade?


To: Dexter Lives On who wrote (19505)2/24/2002 5:28:26 PM
From: slacker711  Read Replies (2) | Respond to of 196499
 
If there is a shortage of voice capacity, why are prices declining at an alarming rate. Economics 101 dictates that there must be an oversupply, or that demand is decreasing.

Hmmm....the price of DVD players is falling. Lack of demand? Oversupply? I say neither.

The dropping prices of wireless minutes (and DVD players) indicates that the capacity crisis is easing. It does not mean that there is an overcapacity.

The two scenarios are dramatically different. Wireless operators are still selling minutes far above their incremental cost to produce a mintute.

Slacker



To: Dexter Lives On who wrote (19505)2/24/2002 7:39:59 PM
From: arun gera  Read Replies (1) | Respond to of 196499
 
>If there is a shortage of voice capacity, why are prices declining at an alarming rate. Economics 101 dictates that there must be an oversupply, or that demand is decreasing.>

Prices in wireless are not really dropping all that much. Don't be fooled by the 4000 off-peak minutes that nobody uses. The plans are a sham. They make you gamble all the time. I have 500 anytime minutes. And in some months I use 200 and in others 400. I can't go down to the 300 minute plan because, they sock it to me when I go over my limit. So I end up paying $50 a month for about 250 minutes, costing me 20 cents a minute. Maybe I am being stupid.

Arun