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Unlimited Flat Rate International Calling Arrives for Just $5 A Month – Why Do We Need to Drop Flat Rate Internet Again?

Phillip Dampier June 25, 2009 Internet Overcharging, MetroPCS 4 Comments

One of the arguments used by those who want to engage in Internet Overcharging is that people already “pay for what they use” for gas and electric service, so why shouldn’t they adopt the same attitude towards Internet service.

metropcsHistorically, people did used to pay for their usage of online services, before there was a World Wide Web.  CompuServe, QuantumLink, PeopleLink, Delphi, GEnie, AOL, among many others used to provide access to dial-up users for a fee which varied depending on the amount of time spent accessing the service.  Rates during business hours were outrageous (CompuServe charged upwards of $12-16 per hour in the 1980s), but more reasonable during the evenings.

But as costs to provide the service declined, providers rapidly abandoned that type of pricing for flat rate, unlimited access for one monthly price.  Internet Service Providers worked the same way, with customers first using dial-up modems to connect for one monthly price.  Nobody worried about watching the clock or meters.  It has worked that way ever since, with highly profitable results for broadband providers.

MetroPCS Coverage Map (click to enlarge)

MetroPCS Coverage Map (click to enlarge)

Now, some of these companies hunger for more of your dollars, and they are attempting to convince you their pricing should be similar to utilities like gas, electricity, and water (while conveniently not allowing themselves to be regulated like those providers).  They scrupulously avoid comparing their service with telephone companies, which are really the closest cousins to broadband service.

Now we know why.  While some broadband providers want to move away from flat rate pricing, telephone companies are moving toward flat rate pricing.

In addition to unlimited local, statewide, and nationwide flat rate long distance plans, MetroPCS, a regional prepaid mobile telephone provider, has announced a new unlimited international flat rate calling plan for just $5 per month.

To be eligible for $5 Unlimited International Calling,  customers must choose an unlimited calling plan starting at $40 per month.  For an additional $5, customers get unlimited calling to 100 countries.

MetroPCS sees this new international flat rate plan as a “game changer” in the industry, drawing large numbers of new subscribers who love to call overseas.  The company may even attract tourists who sign up with a “throwaway” basic mobile phone just for the duration of their visit.  The costs for the service are dramatically lower than roaming rates, especially for international calls, even with the price of the phone.

The only downside?  MetroPCS operates in only a limited number of cities, although they maintain roaming agreements with Leap Wireless (Cricket) to extend their coverage.  Once one company offers flat rate international calling, others will certainly follow, potentially establishing a new paradigm for truly unlimited mobile phone calling, regardless of where you call.

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  • Rasputin1357: Why can't we bring back tar and feathering? This jackass looks to be the perfect candidate for that treatment!...
  • Terry: This makes it look as if you don't understand business. The content producer sets their asking price. The delivery provider negotiates the price to wh...
  • Dave Hancock: Phillip, one thing that you said peaked my interest: "Subscribers on Time Warner Cable’s blog keep coming up with an innovative idea to solve thes...
  • Jason!: Am I surprised? No, I am not surprised....
  • jr: CEOs need to make 8 figures...
  • DM: I hate hearing statements like this because this has been the cable industry’s exact attitude for the past five years. Regarding internet services,...
  • Jeremy: That's their whole plan so they can justify ripping off consumers with lousy bandwidth and caps....
  • Uncle Ken: Just great/ If what Kent says is true we will drop to the bottom of the rest of the earth and be back on dial up all in the name of stock holders. M...
  • Earl Cooley III: They should pay the various channels whatever fees they want, and finance it by dramatically slashing executive compensation, using the extra money le...
  • Phillip Dampier: In other words, some automated test procedure is being run on a periodic basis that resets your line speeds lower (how many have ever gotten faster sp...
  • Zaii: I've been having this issue for months now. I had 1792 d/l for years rock solid connection then I got "optimized" to 1504. Contacted Verizon direc...
  • Phillip Dampier: In Australia or New Zealand, where flat rate broadband was around only very briefly back when "online streaming" meant a low bitrate Real Audio stream...

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