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http://bobcaswell.com/2008/01/26/how-much-is-all-your-email-worth-answer-50/ -
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Anyway, $50 would not satisfy me. I guess the value of different people's e-mail is different, but I'd like to think mine is worth more than $50. That is why I pay for my own domain and hosting solution that has regular backups. I also download it to a local e-mail client in addition.
But I still think $50 is generous within the context of the nothing I'd generally expect in such cases (it has little to do with customer value and everything to do with the company's arbitrary decision).
And I don't see this as much different than Hotmail/Gmail in that customers would be charged (and are charged) exactly the same for the Internet service regardless of their usage of this "free" (by my standards) email.
It's also no different in terms of how and why each type of company would respond (Google/Microsoft or Charter). The reasoning for wanting to remedy the situation in any way is not really to compensate the consumer "fairly." Rather, the purpose is (or would be for Google/Microsoft) to minimize the PR damage while also minimizing the out-of-pocket expense.
You are right though, it isn't (directly) about compensating the customer really. It is about maximizing their return on the dollar for minimizing the bad PR. In that regard it is working. Notice this story is all about the $50, and not really that much about the fact that they deleted people's e-mail. That is what all of the headlines have been: $50. Genius.
Cunning PR can only go so far in handling a situation, of course, it's often better than nothing.
With that said, if thier contract truly does include a clause about the guarantee and liability of email falling on the end user, than I would say that really any compensation users receive is better than nothing. Sure it sucks that it's only $50, but as you guys are saying, most free email sites wouldn't even afford you that. These are the chances you take when signing up for something free. Still though, they should have a backup system...and maybe after this they'll implement one.
On a funny note, I don't know if anyone has noticed the latest batch of ads for this post that Google is targeting. They are for "The Charter Bundle" and an independent "Business Class. Professional. Reliable. Secure." e-mail company. Google's making sure they cover all their bases.