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To: Maurice Winn who wrote (19965)12/18/1998 4:42:00 PM
From: Joe NYC  Read Replies (2) | Respond to of 152472
 
Maurice,

HK$80 = about US$9 for 150 minutes per month. That's 900 cents for 150 minutes = US6cents per minute. When they stop goofing around with silly monthly minute limits and get seriously competitive, prices will be much lower still.

The monthly limits are a great marketing tool. To a consumer, the rates look low. For example, Sprint offers 1000 minutes for $100 or 10 cents per minute, or 500 for $50 or 1500 for $150.

But you as a consumer have to take a gamble and estimate how many minutes you will use. Of course you will miss every month. Suppose you picked 1000 minutes for $100 but use only 500 minutes. So your effective rate ends up $100 / 500 = 20 cents per minute.

If you use 1500 minutes, they charge you 25 cents for minutes over the limit, or $100 + 500 minutes x .25 = $100 + $125 = 225, or 225 / 1500 = 15 cents per minute.

Joe