this post was submitted on 13 Oct 2023
671 points (99.0% liked)
Technology
59390 readers
2617 users here now
This is a most excellent place for technology news and articles.
Our Rules
- Follow the lemmy.world rules.
- Only tech related content.
- Be excellent to each another!
- Mod approved content bots can post up to 10 articles per day.
- Threads asking for personal tech support may be deleted.
- Politics threads may be removed.
- No memes allowed as posts, OK to post as comments.
- Only approved bots from the list below, to ask if your bot can be added please contact us.
- Check for duplicates before posting, duplicates may be removed
Approved Bots
founded 1 year ago
MODERATORS
you are viewing a single comment's thread
view the rest of the comments
view the rest of the comments
The reason is retention. For a company that sells a service where they pay a single overhead (like maintaining a structure) it always makes more sense to lose a little money and retain a customer if prices are going down elsewhere.
That is to say if your internet plan is $80 and they have intel that a local competitor has started selling a similar plan for $60, it makes more sense to spend 3 minutes talking to an existing customer about lowering their bill to $60 rather than let that customer discover a cheaper plan and switch to someone else. If they let that customer switch they lose the whole $80 whereas if they just lower that customer's price they only lose $20.
They are the sole owner of the fiber around here, you aren't getting faster more stable internet for that price, no way.
I was paying about around $30 for gigabit, which is awesome here in the Czech republic. They dropped the price by $5 to $25.
I understand why companies would do it usually, but here, I honestly don't see why they would. They're offering great service for great prices