Quote:
Originally Posted by jfman
You’re assuming that their pricing is absolutely stripped to the bone, all of their costs absolutely minimised for fear of losing out to their competitors.
While markets in perfect competition work in this manner that isn’t true where there’s a small number of suppliers offering like for like products. While there are MVNOs there’s fundamentally four UK suppliers of mobile connectivity. They have no incentive to aggressively reduce their costs and every incentive to push their prices gradually upwards to maximise profits in the absence of adequate regulation.
None can make substantial inroads into the others market share in a short period, in which the other would respond anyway.
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How on earth can they reduce the costs created by
other companies, in
other countries?
Eg Movistar mobile network in Spain would charge the EE for a call placed by an UK EE customer in Spain to somebody in the UK. How else could Movistar be expected to fund the service in Spain?
EE would have no control over that cost.