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The pretenders to mighty MXit’s throne
- Thread starter rpm
- Start date
Geriatrix
Executive Member
Why did MTN and Voda think they can make their IM better than Mxit by making it network exclusive? I mean really...
Juice
Expert Member
Yeah, was just about to post the same thing. This:
"At a retail price of R2 per MB, this means revenue of over R750 000 per day (this is still part of that rough calculation)."
does not go to MXit. It goes to the cellular host. MXit makes its money from selling MXit Moola and, I would imagine, advertising. You can't get into a chat-room without the Moola, and there's no mention in the article of how many of the 40gb in data is sent using the Moola.
Also, another thing: Mxit now uses an uncompressed version of the Jabber protocol which allows you to add Mxit users to your Gmail contacts and probably enhances the inter-operability of their service. You can't connect to any Jabber service from MXit though, because the protocol is customised to be uncompressed and many PC-based implementations use the open-source compressed standard.
To be honest, I'm mystified why the cellular operators want their own services. Band-wagon? Maybe they hope to generate income from the subscriptions or advertising, though I can't imagine why anyone would switch. Unless they are planning to try and force MXit out of the market by increasing the data-rates and offering their own crappy products as 'free' alternatives. I would not put that past them, since us poor South Africans are still bleeding from the whole interconnect conspiracy...
"At a retail price of R2 per MB, this means revenue of over R750 000 per day (this is still part of that rough calculation)."
does not go to MXit. It goes to the cellular host. MXit makes its money from selling MXit Moola and, I would imagine, advertising. You can't get into a chat-room without the Moola, and there's no mention in the article of how many of the 40gb in data is sent using the Moola.
Also, another thing: Mxit now uses an uncompressed version of the Jabber protocol which allows you to add Mxit users to your Gmail contacts and probably enhances the inter-operability of their service. You can't connect to any Jabber service from MXit though, because the protocol is customised to be uncompressed and many PC-based implementations use the open-source compressed standard.
To be honest, I'm mystified why the cellular operators want their own services. Band-wagon? Maybe they hope to generate income from the subscriptions or advertising, though I can't imagine why anyone would switch. Unless they are planning to try and force MXit out of the market by increasing the data-rates and offering their own crappy products as 'free' alternatives. I would not put that past them, since us poor South Africans are still bleeding from the whole interconnect conspiracy...
I'll volunteer this explanation:
These products from the networks lack an understanding of the dynamics in this space. It is typical of the "me-too with mighty marketing muscle" approach usually taken by them - but is unlikely to succeed in their current forms.
Now remember that these messages would have been sent as sms without IM existing - a technology that has been around for very long but never launched by the networks for fear of cannibalising huge sms profits. Rough calculation .... 200m messages might have been 40m sms instead at about 50c per message. R20,000,000 per day instead of the paltry R750,000 on data. That's about 27x more per day.
Now as a defensive strike (too little too late) they are trying to build a substantial alternative. If they could create huge communities themselves, then they would have a locked in base and begin raising the price per message or per Meg. The bigger their installed base, the higher they would charge.
Now as for advertising revenues etc. This would be welcome too and give them both training in the content monetisation space and the new media space.
Unlikely.
These products from the networks lack an understanding of the dynamics in this space. It is typical of the "me-too with mighty marketing muscle" approach usually taken by them - but is unlikely to succeed in their current forms.
Now remember that these messages would have been sent as sms without IM existing - a technology that has been around for very long but never launched by the networks for fear of cannibalising huge sms profits. Rough calculation .... 200m messages might have been 40m sms instead at about 50c per message. R20,000,000 per day instead of the paltry R750,000 on data. That's about 27x more per day.
Now as a defensive strike (too little too late) they are trying to build a substantial alternative. If they could create huge communities themselves, then they would have a locked in base and begin raising the price per message or per Meg. The bigger their installed base, the higher they would charge.
Now as for advertising revenues etc. This would be welcome too and give them both training in the content monetisation space and the new media space.
Unlikely.
Who needs who to work?
I find incredibly strang how no other comapny took on Mxit, they were just allowed to get away with being the only mobile IM minus Migg.
TBH I like Migg, better than Mxit, The IM markets open you can start your own if you want, charge what you want.
Theres a market for a Premium Mxit... Charge more, have more afluent proffesional users.
I find incredibly strang how no other comapny took on Mxit, they were just allowed to get away with being the only mobile IM minus Migg.
TBH I like Migg, better than Mxit, The IM markets open you can start your own if you want, charge what you want.
Theres a market for a Premium Mxit... Charge more, have more afluent proffesional users.
Flint
Well-Known Member
What amazes me is that the open framework for text messaging developed ages ago-and with working clients on devices from various manufacturers-hasn't been picked up instead. How much more potential is there for a system that does not require a separate client to be installed on the device, works in a way familiar to users that already understand SMS, and holds the potential at server level to be a gateway to all the other major text messaging services. Stupid.
kronoSX
Honorary Master
very interesting article,From reading this i will see how mig33 handles to fring..For me its about what is really easy and cheaper to use on a htc
There are just a couple of things I need to understand:
1. Why does the author imply MXIT makes money from data. They don't AFAIK, they make money from Moola which people use to access chatrooms.
2. Now if the Vodacom client can send messages without charging people for their data usage that is anti-competitive business practices. They could be taken to court and pay very dearly for this.
1. Why does the author imply MXIT makes money from data. They don't AFAIK, they make money from Moola which people use to access chatrooms.
2. Now if the Vodacom client can send messages without charging people for their data usage that is anti-competitive business practices. They could be taken to court and pay very dearly for this.
Corrections
A message on MXit is at least 55 bytes (meaning the average size is even more). Then there are also lots of other data being sent, for example contacts lists, presence changes, and of course files like images and sounds in the newer MXit versions (which are very big compared to the messages).
If MXit didn't exist and these messages were sent as sms, I'll assume that most of these smses would have been sent during off-peak times, or using sms bundles, resulting in costs of 35c or less per sms (including peak smses, it average might be more).
This would change the estimates of sms revenues to at most 5 times more than the data from MXit (I didn't recalculate, only changed the other estimates). But even this means a big loss for the network operators.
I wouldn't call it anti-competitive business practices from Vodacom... I doubt that many people will change to their services simply because they're paying a few cents less for data (maybe some people are desperate?).
A message on MXit is at least 55 bytes (meaning the average size is even more). Then there are also lots of other data being sent, for example contacts lists, presence changes, and of course files like images and sounds in the newer MXit versions (which are very big compared to the messages).
If MXit didn't exist and these messages were sent as sms, I'll assume that most of these smses would have been sent during off-peak times, or using sms bundles, resulting in costs of 35c or less per sms (including peak smses, it average might be more).
This would change the estimates of sms revenues to at most 5 times more than the data from MXit (I didn't recalculate, only changed the other estimates). But even this means a big loss for the network operators.
I wouldn't call it anti-competitive business practices from Vodacom... I doubt that many people will change to their services simply because they're paying a few cents less for data (maybe some people are desperate?).
YelloFever
MTN Company Representative
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Corrections
noknok has had interworking with Vodacom's Meep since December 2007.
What makes noknok different to MxIT is that it has phonebook integration with your handset phonebook , SMS & MMS integration, and SMS wakeup services (use silent SMS to wake up the client) which significantly improves battery life. It is fully standards compliant and has the ability to easily integrate into other IM environments. It is also fully PC integrated and can be run from any Windows PC.
Sign up and give it a try to see for yourselves why noknok is a better service. Dial *123*14# to download the client to your handset. Also visit www.noknok.co.za.
noknok has had interworking with Vodacom's Meep since December 2007.
What makes noknok different to MxIT is that it has phonebook integration with your handset phonebook , SMS & MMS integration, and SMS wakeup services (use silent SMS to wake up the client) which significantly improves battery life. It is fully standards compliant and has the ability to easily integrate into other IM environments. It is also fully PC integrated and can be run from any Windows PC.
Sign up and give it a try to see for yourselves why noknok is a better service. Dial *123*14# to download the client to your handset. Also visit www.noknok.co.za.
falcrum - the sms rate you estimate and the size of message are one dimension. Then apply that thinking to the data rate Hilton used - R2/meg. This is also much lower based on best rates. So data would be bringing less revenue.
Also if users were sending these messages as off peak sms (takes away the big benefit) and they're not sensitive to a few cents, then there would be closer to the 200m IM sent via sms.
Both these elements combined, exaggerate the opportunity costs for the network.
Your very last statement is what we marketers rely on - that being if we hook you into a service, we can gradually push up the pricing. And while a few cents in the hand of the user may not be glaringly noticeable, at the supply level multiplied by millions of users, it pays a lot of bonuses.
Also if users were sending these messages as off peak sms (takes away the big benefit) and they're not sensitive to a few cents, then there would be closer to the 200m IM sent via sms.
Both these elements combined, exaggerate the opportunity costs for the network.
Your very last statement is what we marketers rely on - that being if we hook you into a service, we can gradually push up the pricing. And while a few cents in the hand of the user may not be glaringly noticeable, at the supply level multiplied by millions of users, it pays a lot of bonuses.
noknok can do all that... if your phone is supported. The download site only lists 9 supported Nokia phones, and the Sony Ericson W810i. This will need to change if noknok wants to get market share, but I guess with the older phones being phased out slowly, this wouldn't be much of a problem in the future.
Mxits mighty throne?
Interesting post to say the least.
However looking a little deeper it may be interesting to note that The GRID is not an IM application, so once again we are here comparing apples with pears.
The GRID is as you later stated a social networking application similar to say facebook or myspace. Its like saying Skype is trying to topple facebook.
Instead of welcoming the new players to the market it seems to me we are criticizing their applications as if this is some evil way of trying to topple some mystical throne.
Mxit is HUGE in South Africa, i wont argue with that, but on the global front they are but a drop in the bucket. IM applications like QQ from China, which btw is also now available in South Africa through a partnership with Mweb have more than 250 million users world wide. Now thats a throne if ever there was one. Is Mweb also maybe trying to topple the Mxit thrown? No they are simply providing an alternative service thus boosting competition in the industry and as we know this can only be good for the end users. Competition is a good thing, we don't want to go the route of Telkom again do we, one company ruling the roost and controlling the price as they want? Any competition in the industry should be welcomed with open arms. I do agree that playing dirty should not be allowed, say for instance if Vodacom or MTN where to provide free IM, then I would say hey, thats not fair, they are trying to kill Mxit. (The whole Mango airways things comes to mind again)
Great new mobile applications are popping up all over the earth, as a country we should be happy to see that our mobile networks are looking at ways put South Africa on the map with great new apps. Think of the "old days" when Apps like Skype where banned by government and Telkom. Everyone should be happy to see that the days of monopolies are over and that the networks don't ban programs like Mxit just because they loose revenue to these new technologies. At least they play fair and let competition grow and even go as far as introducing their own cool mobile app's.
Anyway thanks again for the interesting post, enjoyed reading it. Please don't take my criticism the wrong way.
Interesting post to say the least.
However looking a little deeper it may be interesting to note that The GRID is not an IM application, so once again we are here comparing apples with pears.
The GRID is as you later stated a social networking application similar to say facebook or myspace. Its like saying Skype is trying to topple facebook.
Instead of welcoming the new players to the market it seems to me we are criticizing their applications as if this is some evil way of trying to topple some mystical throne.
Mxit is HUGE in South Africa, i wont argue with that, but on the global front they are but a drop in the bucket. IM applications like QQ from China, which btw is also now available in South Africa through a partnership with Mweb have more than 250 million users world wide. Now thats a throne if ever there was one. Is Mweb also maybe trying to topple the Mxit thrown? No they are simply providing an alternative service thus boosting competition in the industry and as we know this can only be good for the end users. Competition is a good thing, we don't want to go the route of Telkom again do we, one company ruling the roost and controlling the price as they want? Any competition in the industry should be welcomed with open arms. I do agree that playing dirty should not be allowed, say for instance if Vodacom or MTN where to provide free IM, then I would say hey, thats not fair, they are trying to kill Mxit. (The whole Mango airways things comes to mind again)
Great new mobile applications are popping up all over the earth, as a country we should be happy to see that our mobile networks are looking at ways put South Africa on the map with great new apps. Think of the "old days" when Apps like Skype where banned by government and Telkom. Everyone should be happy to see that the days of monopolies are over and that the networks don't ban programs like Mxit just because they loose revenue to these new technologies. At least they play fair and let competition grow and even go as far as introducing their own cool mobile app's.
Anyway thanks again for the interesting post, enjoyed reading it. Please don't take my criticism the wrong way.