Thought you guys might want to know:
https://docs.google.com/spreadsheet/pub?key...d=0&output=html
Edit: I added a new item New subscription per month after less proceeds, accidentaly removed it prior.
Edit2: Added a new note, how much you will pay depends on your existing plan
Edit3: Corrected inherited bug in Telco with cheapest contract due to previous edits.
Edit4: Anyone in the field of micro-economics can model this further to explain Consumer Equilibrium to maximize and maintain their Marginal Utility.
Edit5: Corrected an error spotted by randyhow, changed 24 months to 12 months for 12 months contract.
Edit6: Added numberings to segregate between selling the phone to subsidize the plan and knowing the actual cost of phone when subscribing.
TL;DR section
- Maxis is neither most expensive nor the cheapest, they probably got it right
- Digi contract gives you the cheapest cost of phone at the end of the contract
- Celcom could be the most expensive but they provide you with a shorter contract period
- The savings between all of these plans range from between RM100 all the way to RM400, which is just a savings of RM5 - RM20 per month (sell phone take plan)
- All in all, it really depends on your existing plan
How this spreadsheet works:
- This spreadsheet is trying to calculate what you are paying extra when you sign up a plan
- Current plan - New plan = Extra you pay every month
- Extra you pay every month + telco's subsidized phone cost = Actual phone cost
QUOTE
When consumers make choices about the quantity of goods and services to consume, it is presumed that their objective is to maximize total utility. In maximizing total utility, the consumer faces a number of constraints, the most important of which are the consumer's income and the prices of the goods and services that the consumer wishes to consume. The consumer's effort to maximize total utility, subject to these constraints, is referred to as the consumer's problem. The solution to the consumer's problem, which entails decisions about how much the consumer will consume of a number of goods and services, is referred to as consumer equilibrium.
Source: http://www.cliffsnotes.com/study_guide/Con...cleId-9753.html
Source: http://www.cliffsnotes.com/study_guide/Con...cleId-9753.html
Summary
From here we can actually deduce that Maxis actually structured their plans directly comparable to Digi by giving the options of 24 & 12 months contract and to Celcom by giving the 18 months option. Vice versa you can say both Digi and Celcom are doing the opposite. This argument also hold true regardless of whoever came out with the contract first.
We can also see that Celcom's contract does not provide the benefits of economies of scale to users who subscribe to their longer 18 months plan comapred to their 12 months plan. As you can see, actual cost of phone actually becomes more expensive for 18 months 3GB plan vs 12 months 3GB plan and no change in terms of device cost when contract ends for the 18 months 1GB plan vs 12 months 1GB plan. So if you want out asap and not to be tied down, choosing a 12 month contract with Celcom seems to be the better option. As for Celcom, this means that contract structured this way actually makes jumping ship easier to their subscribers which is not the actual intention of tying up subscribers with contracts at all.
The opposite can be said for Digi where they provide the lowest for subscribers who choose to sign up with their highest data plan with longest 2 years tenure subscription.
What was interesting though is that Maxis never seem to appear anywhere as cheapest for all contract type be it 24, 18 or 12 months. They just seem to be in between of everything. I actually regard this to Celcom's plan that turn out to be expensive base on the assumed current plan. Had Celcom structured their plans to be more competitive, Maxis could have appeared at least once along one of those 3 type of contracts. Nevertheless, I think Maxis have positioned themselves well in this market (they know their strength and the value people are willing to pay for wider coverage - statement debatable) but the same must be said to Digi since in my opinion Digi is the one with the least popular when compare with the top three telco of Malaysia. Thus, coming out with an unbeatable contract to entice more subscribers to join them is the right strategy.
Then again, I think they are the most creative to make up for being the least popular due to coverage issue. Digiman ftw! Follow follow.....
From the post below on our saturated telco industry, it makes sense for telco to come out with plans to entice user to stay with them as long as possible. I am not sure what to say for those otherwise. Nevertheless, it is telco like Celcom providing contracts that is shorter for subscribers seems to give the best value albeit being the most expensive one out there. I suppose Celcom's strategy has weight too. In short, pay more and you end the contract fast. You can call this the quick exit strategy. Opting for short term revenue exit rather than a long term..... whatever it might be.
This post has been edited by j45on: Jun 2 2012, 01:18 PM
Jun 1 2012, 02:47 AM, updated 14y ago
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