Vodacom, MTN aim to prove to Icasa their prices are fair

NETWORK operators MTN and Vodacom are preparing to mount a fierce defence at an inquiry into the high cost of cellphone calls by drawing up statistics to show that the fees have not risen in real terms for a decade.

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In a bid to prevent Icasa from forcing their prices down, Vodacom and MTN are compiling research to show why they should be left alone.

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Vodacom’s research shows that its prepaid tariffs are generally cheaper than those in 10 other countries in Europe, Africa and Asia.

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http://www.businessday.co.za/articles/topstories.aspx?ID=BD4A74668

What does an average minute call cost? About R2,75 or something like that. How on earth can they justify R2.75 per minute fair? Unbelievable.

Vodacom, MTN aim to prove to Icasa that the moon is made of cheese.

Looks like it`s time for a certain forum to weave it`s magic again

<Q>Vodacom’s research shows that its prepaid tariffs are generally cheaper than those in 10 other countries in Europe, Africa and Asia.</Q>

ERM - Every other country in the Freaking World offers CONTRACTS that are actually there for CUSTOMER LOYALTY and these CONTRACTS offer cheap and attractive call rates.

In other countries, PREPAID is a non-customer-sential service provided for tourists, not actual CUSTOMERS, and is OVERPRICED and not the CORE SERVICE.

Here the CORE SERVICE is PREPAID because the CONTRACTS are complete and utter RIPOFF's and we're not completely stupid - we can see that the contracts are ripoffs, so we take prepaid.

So - stick your argument about PREPAID PRICING up your a$$, cos you are SUPPOSED to have very few prepaid customers, not MOSTLY prepaid customers.

Oh when will these peasants learn that you can't fool us....

there's no way they can justisfy their prices.. 51% penetration is massive.
i'm probably wrong, but i thought that supply and demand was still a workable business model. more punters there are the less a service should cost.. in theory.
plus the fact that in a decade they've paid off the intial cost of infrastructure and investors are getting favourable returns!