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Overhype

by Mike Masnick

Wed, Sep 1st 1999 1:56pm





Super Cheap Phone Calls

from the gotta-change-that-plan-again dept

Well, the phone call price wars seem to show no signs of slowing down. I just switched my plan so I get to make $0.05 calls nights and weekends, and now IDT comes out with a $0.05 all the time deal. Man, that's tempting. I wouldn't have to keep waking up people I call on the east coast, because I want to wait until the rates drop.

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    Todd, Sep 1st, 1999 @ 3:30pm

    Two years ago at a congressional hearing, a pricing analyst for the FCC said they anticipated that prices would continue to move toward "their true, variable cost [sic; a comment in a second] of 1-2 cents/minute". He explained that the variable cost was likely just the cost of the electricity on their part of the network (hundreds of a cent), but that by amortizing their servicing and marketing costs either by customer or by minute, the rates per-minute would be in that range. Now shall we take bets on who offers 2 cents first and when?

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