drifter136
Newbie
I was using your statistics:
Vodafone = $72 billion in revenue and 347 million subscribers
Rogers Wireless = $4 billion in revenue and about 6 million subscribers
Some simple math shows:
Vodafone makes $207 in revenue per subscriber
Rogers Wireless makes $666 in revenue per subscriber
Thats over 3X more revenue per subscriber. Not too shabby. If I wanted to start my own cellular company guess where I'd rather setup shop?
Okay, it's clear you have ZERO understanding of economic principles. Here's the part you're not understanding:
Revenue = income. NOT profit. Revenue is raw income. It is not money made, it's money coming in. There's a BIG difference there. For revenue to become profit, you have to remove all the costs involved in bringing that revenue back. IE your hardware including upkeep, towers, staffing, etc.
Example:
You spend $5 on a toy at the toy store.
The toy store's REVENUE is $5.
The toy store paid the supplier $2 for the toy.
Of all the toys in the store, approximately $1 in the sale of each covers advertising.
$5 revenue - $2 cost of toy - $1 advertising = $2 profit.
What this means is that Vodaphone, covering roughly the same geographical area as Rogers, has 58 times as many subscribers to spread those costs over. Rogers still needs all the same equipment and just as many towers, and the same maintenance staff to maintain all that equipment and towers as Vodaphone does.
This is what sconnelly and I are trying to explain. Vodaphone is making FAR more money per subscriber than Rogers is, despite the fact that the plans may be cheaper. This is why Vodaphone has their name all over Formula 1 racing cars (a sport renowned for throwing money around), while Rogers sponsors 2nd rate pro tennis tournaments.