Tuesday, April 26, 2005

Economics of Telecommunication 

I am basically a technician who always gets told by the product managers of his incumbent that he has no idea about economics, markets and business cases. My cold comfort is they seem to hav e no idea either. Since I have a son Michael studying economics I even have sometimes the suspicion that I ...

Back to the story: my younger daughter Julia had a pre-paid SIM-Card where I have the control on re-charging, for very good reasons. For some period of time she used another SIM-card in her mobile phone and the old SIM got lost. This is nothing unusual in a 6-person household where much bigger things get lost: combs and glues just evaporate, mp3-players, power supplies, books, etc., sometimes even one of the kids gets lost.

Basically these things are not lost, they are just lurking somewhere. The easiest way to find them is to buy a replacement, because afterwards they are immediatly popping up. Ok, we do not replace kids, because they show up by themselves if they are hungry or need money, whatever happens first.

So I called the mobile service provider for another SIM-card:

The guy at the phone was very friendly:

No problem, that's just 29 Euro.
Pause
But if you get a Nokia whatever in addition, it is only 19 Euro.

?Huh?

Ok, since mobile phones also evaporate (except the old museum bricks), it is always nice to have a spare one.

Nice, but I definitely do not understand the economics of telecommunications. I leave this to the product managers.

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