Saturday, October 31, 2009

The $10 Phone Bill: The $116 billion business of selling cell phone calls in the U.S. faces a long, ugly decline.

"Commodity--as distasteful as that word might be, there's opportunity there," Linquist says, contemplating the coming apocalypse with a smile. "Our anchor is that as long as we have a substantial cost leadership position we know we're not just a survivor ... we will thrive."

The new gear is so powerful that he will be able to simultaneously increase the quality of cell phone calls while cutting the cost of providing each minute, from just under a penny today to closer to a tenth of a cent. Linquist charges 2.1 cents a minute, just under half of the industry's average revenue. He'll continue cutting, confident his singular focus on running the cheapest voice network will keep his costs well below those of the rest of the industry."

in reference to: The $10 Phone Bill - (view on Google Sidewiki)

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