August 03, 2022
Expect To See Major Price Hikes In Rate Plans For Wireless & Home Internet Due To Chord Cutting
The next shoe to fall that is going to hit Telco and CableCo revenues hard is Cord Cutting.
How are these industries likely to respond?
Price increases on what they have left = Wireless Rate Plans and Home Internet Rate Plans.
We've already predicted these price hikes before the big Telcos announced them (https://lnkd.in/geK8CuYN) due to the fact that 5G is considerably more costly to deploy than the Telco's initially thought. Multiple Telecom operators have called out these operational (OPEX not CAPEX) costs as being problematic to their financials last year.
Due to the incredible financial pressure the vast majority of the world is under; where an incredibly large % of each country’s population is struggling to pay the bills each month : https://lnkd.in/gWwdgXTi
We anticipate a rapid increase in the rate of chord cutting.
You’ve already seen Charter lose 240,000 Video (TV) customers in Q2 : https://www.fiercevideo.com/video/charter-loses-240k-video-subs-q2
Comcast lost 521,000 Video (TV) customers in Q2 : https://www.fiercevideo.com/video/comcast-loses-521k-cable-video-subscribers-q2
The 1st thing that is going to get cut in a Telco service bundle is TV.
The only way that a Telco and CableCo can respond to this loss of revenue is by dramatic price hikes on their 2 other source of revenue : Wireline (Home Internet) and Wireless.
The content being offered on TV channel by traditional content providers is simply not worth the cost.
The potential saviour for Telco and CableCo is a dramatic price hikes by the OTT players like : Netflix, Disney+, HBO, Hulu, etc.
Please leave your comments on what you’ll be doing to try to reduce your personal monthly spend.
Expect to see continued price hikes on High Speed Internet and Wireless rate plans not just due to inflation, but also due to the above.
Our Mobile Cost Management (MCM) Solution :
- 70% More cost effective than a Stipend for Smartphone Reimbursement
- 75% More cost effective than a Company provided phone
- Keeps companies labour law and tax law compliant
- Protects companies against class action lawsuits by their employees for failure to reimburse or adequately reimburse
- Keeps employees reimbursed & happy in a tax efficient lower cost way than a stipend or company provided phone
- Aligns your smartphone reimbursement policy to your mileage reimbursement policy. Tax authorities globally have required a mileage book for years and now require a "mileage book for connectivity costs" denoting the business vs. personal usage & cost
30 Second Explainer Videos On How We Lower Costs For Employees/Gig Workers & Employers :
Tax Deduction Changes For US Gig Workers : https://lnkd.in/ggAfRWhc
Tax Deduction Changes For Canadian Gig Workers : https://lnkd.in/gHFXa5nC
Tax Deduction Changes For Australian Gig Workers : https://lnkd.in/geT95ZTM
Non-Canadian Employee & Gig Worker tax deduction : https://lnkd.in/gD5eEke
Smartphone global tax trends : https://lnkd.in/dbvArumkBack