Friday, September 01, 2006

Deathmatch: Verizon Wireless vs. Swisscom



How expensive is it to own a cellphone (mobile to UK readers and handy to you Germans) in Switzerland? Our investigative team aims to find out. We will pit American provider Verizon Wireless against Swiss competitor Swisscom. Both are powerhouse telecom fixtures in their respective countries, owning fixed lines as well as telecomm services. Let's see how they fare head-to-head. So let's get it on!

Assumptions:
  • Our callers will place 500 minutes worth of calls a month over the course of 100 individual calls
  • We will evaluate the most cost efficient subscription, as of September 1, 2006
  • Zip codes selected for evaluation will be 20006 in Washington D.C. and Geneva, Switzerland.
  • 50% of calls during night and weekends, 50% during daytime
  • No roaming calls
  • Costs will be estimated over 1 year (12 months)

Verizon Wireless:
  • 450 anytime minutes = $39.99 USD
  • Activation fee = $35.00 USD
  • Additional minutes are .45 = (50% of 50 minutes) = $11.25 USD
  • SIM card included
  • Total 1-year TCO: $526.13 USD

Swisscom:
  • NATEL Liberty monthly subscription = 25.00 CHF
  • SIM card (initial) = 40.00 CHF
  • .50 CHF /call up to a max. of 60 minutes; then CHF 0.50 for each further 60 minutes (7x24h)hour = 50 CHF (100 calls x .50 CHF)
  • Total 1-year TCO: 940 CHF = $764 USD
Verdict:

Verizon. Apparently, Swisscom's profit model depends on people making short calls of less than 60 minutes. Unless you're a 14-year old girl in a new relationship with the dreamy guy at the front of the class, who is talking hours at a time? Especially if your'e Swiss?


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