Tuesday, October 28, 2008
Switching Costs
I’m always considering switching my cell phone coverage; not because I don’t get service everywhere or because I’m paying way too much, but I always think that I can do better. I’m currently with Centennial and have been for over three years. I’ve gone through four phones; one was just old, one was stolen (from me, not by me), and one was broken. They’ve always been able to offer me a new phone well below cost. The only stipulation would be a renewed 2-year contract. I’m also on a customized plan that fits me perfectly; I get free nights and weekends (when I use it most) free incoming texts, free long distance, and 300 anytime minutes not covered by the previous parts of the plan. This is why I can’t switch: the switching costs are too high and the benefit of switching isn’t all that great. I get service nearly everywhere I go, I don’t have a problem with dropped calls and I’m only paying for a thirty dollar plan. Any switch would force me to buy a new plan, which comes with an activation fee, and who’s to say the coverage will be any better. Essentially, Centennial could offer me much less than they do now, and I’d still prefer to stick with them rather than go to Verizon or other carriers.
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