Market demand is most often created by wants, so to me, this argument as to whether something is a necessity or luxury in this context is pointless.
...
If people want something, will they pay a high price if no alternatives are available? Yes. But it is also true that as soon as someone in the market begins to provide a cheaper alternative, consumers will vote with their dollars by moving (cord-cutting, etc.).
What is pointless is arguing tautologies. Of course people will pay less if they have the opportunity. The point I'm arguing is the "they're charging too much" assertion. In whose opinion?
My point is simple: In a (more-or-less) free market, sellers will generally attempt to maximize profits. If they can do so by charging more, they'll charge more. Arguing "they're charging too much," when people will obviously pay for it, is silly.
And it became obsolete because of the ubiquity of cell phones which began to offer nationwide long distance as well as companies like Vonage that offered VoIP services at the fraction of the cost of traditional long distance.
Again: You're countering a point I did not make. I was writing about the
companies that used to provide those services, and that were at the top of their food chain. These were companies that
should have dominated the newer technologies.
Particularly AT&T. They ended-up failing for a variety of reasons,
not the least of which was they essentially ended-up selling what had been their major product
at a loss.
I don't like to get in flame wars on the interwebs but....
People like you **** me off. You tell other people that the way they are spending money is stupid. You have no place criticizing the way I spend money and putting down my argument that cell companies are overcharging as if I was a spoiled brat. I wasn't complaining. I was stating that cell companies overcharge. Period.
I hated the prices I was being charged but as I wanted a smartphone I didn't have a choice.
You can be annoyed all you want. You can complain wireless and other providers are overcharging,
in your opinion, all that you want. None of that changes two facts: 1. You paid it, therefor they were successful at charging what the market would bear. 2. By your own admission: You
wanted it. You did not
need it. Here is the difference between "want" and "need": People in the U.S. north that have been paying 50% more for propane gas, and are facing prices
three times what they were paying:
Those people
need that propane gas. Otherwise they freeze.
Lastly: I did not call you "stupid." I said the prices you were paying for wireless services were stupidly high. There is a difference. If I had written, instead, that the prices were "ridiculously high," would you have assumed I was calling you ridiculous? "Insanely high," to mean you were insane?