Friday, October 26, 2007

Like Britney said, "Gimme more"

I was reading an article today on DRAM price fixing between 1999-2002. That's computer memory for non-nerds. It got me thinking about some things I think we need to discuss.

A number of years ago (I don't remember how many exactly), the AT&T monopoly over phone service was broken up in order to let more companies into the market, bring prices down, increase competition...the usual knee-jerk answers from people interested in deregulation. And to an extent, I agree. Why be at the mercy of one phone company when you can heel to five or six? Just rotating between them chasing the lowest price, but getting the same poor service from each. More to the point- has anyone looked at their phone bill lately? AT&T seems to be making a comeback. They've been given a monopoly on the iPhone market (which is funny since Apple is always pissed off about Microsoft's hold on the OS market). They're sucking up smaller companies like a hooker on balls. And now they're not just offering phone calls, but internet and cable as well. I guess we decided they were punished enough and are allowing them to resume their ways. I can't prove they're a monopoly, but its awful suspicious. Also-change your stupid name. We don't use telegraphs anymore.

Consider this: cell phones used to be hundreds of bills and were only for the tragically trendy. And the service to keep them working was just as heavy on the wallet. Skip ahead 10 years. Everyone has a cell phone (except me). Cell phones are cheaper than 12 oz. Mouse animation. Companies are giving them away. But the service prices? Not much less than they were. Net gain for the phone company. They don't have to sell phones. That's obvious by the sales pitch: they'll give you an expensive phone for cheap or give you a "free" phone for signing long-term contracts. They're making their money on the services. What services? Mostly shit that's free for land lines. They say they're not charging you for it, but the phone bill says otherwise. They may say "it's more expensive to set up cell phone services." That's only partially true. Satellites are expensive. But each one can process millions of calls that used to require banks and banks of expensive automated relay systems. Cost per phone goes down, the cost of services should too. But it hasn't.

Another good example: TVs. The LCD panels used on these are being dumped off a factory line faster than American produce on third world markets (if you get the economics joke there, good for you). Have prices come down in the past 10 years? Yes. That's to be expected. Are we still paying a premium even though the technology is 20 years old? Yes. That's where the problem is. You can pick up a 27" analog TV for $150-$200 dollars depending on where you buy and what you want. A 26" LCD will set you back 3-4 times as much. These TVs are more expensive to produce than analog TVs, but not by 3-4 times. They're much cheaper to package and ship. Loser in this equation: consumer. They get the same size tv with the same features for much more money.

It all boils down to greed. People are greedy bastards. It's something our society promotes and something we treat as a laudable goal. Get more. Get more expensive. Show those other guys what a terrific person you are because of all the things you have. When you die, dip your bones in gold so everyone knows how great you were. As for me, I'll take a land line, my eye-cancer producing TV, and internet porn. Also Jack in the Box. I'm a simple person. Those are pretty much all I need to get by.

1 comment:

Mommy Dearest said...

I agree with you that it all boils down to greed. Look at the price of a bag of potato chips then look at the size of that bag.....costs more, weighs less. Big business has convinced us that less is better even if we pay more for it! I'm so sick of the greed.