throws the lid of the pandoras box open

S

Snowolf

Well-Known Member
Joined
Mar 7, 2005
Messages
270
Reaction score
0
Location
Mpumalanga
This seems like the question that is on every ones lips.
When are the other SP coming to the party on the reduced costs per meg.
Sure VM are having problems @ the moment, but if memory serves me so did MTN and Vodacom.
VM will sort out the problems (eventually) at 50c a Meg they will have my vote.
VM is still making a profit @ 50c a Meg so at R2 a Meg who is slaughtering who?
 
Snowolf said:
This seems like the question that is on every ones lips.
When are the other SP coming to the party on the reduced costs per meg.
Sure VM are having problems @ the moment, but if memory serves me so did MTN and Vodacom.
VM will sort out the problems (eventually) at 50c a Meg they will have my vote.
VM is still making a profit @ 50c a Meg so at R2 a Meg who is slaughtering who?
Click to expand...


Good day,

We'll be hopefully launching our new bundles and tariff’s in Jan, Feb that's all I can say

But to be honest it’s not going to be as good as 50 cents a Meg

MTNDD
 
Snowolf said:
VM is still making a profit @ 50c a Meg so at R2 a Meg who is slaughtering who?
Click to expand...

I can't honestly say if they are making a profit or if this is offset by other benefits such as the voice calls that the data subscriber makes.

I've seen the breakdown of the pure cost in delivering a Meg of data to a mobile user and it is far higher than generally believed.

Can't give figures but the various components include:
- data cost as charged by tier 1 ISP
- core network equipment (GPRS nodes, routers, switches, DNS, firewalls, spam detection, authentication servers, gateway servers) - hardware cost, support and licensing; software (functionality) cost, implementation, support and licensing
- access network - hardware upgrades, support
- transmission network - capacity upgrades, Telkom backhaul
- handset and datacard subsidies
- VAT
- regulatory fees and funds
- commission to service providers and retail agents
- management systems to look after data delivery (OSS, performance management)
- specialised staff in network planning, support, operations, customer care, sales channels
- advertising and marketing costs
- distribution costs
- billing, rating and prepaid charging mechanisms
- etc...
 
Bugger the components. Those are mostly fixed charges which the networks have to pay anyway.

The logic is very simple.

If Vodacom can offer bundles at 40c a meg, then believe me, 40c a meg is a profitable level for the operators.

The only reason out of bundle charges are so high is to encourage users to purchase bundles. ie to buy data in bulk.

If VM had 3G and HSDPA, then MTN and Vodacom would be forced to match the 50c/Meg model.

Until that time comes (if it ever comes) MTN and Vodacom clients who are married to 3G/HSDPA will continue to get ripped off by out-of-bundle rates.
 
How does the local GPRS/3G/HSDPA rates compare to the rest of the world?

I've heard several claims that SA rates are quite low - inspite of Telkom charging an arm and a leg for backhaul and international bandwidth.
 
MobileOne in Singapore: http://m1.com.sg/broadband/m1bb.htm

For unlimited data:

3G (384K) = SG$22pm = R100pm
HSDPA (1.8M) = SG$38pm = R173pm
HSDPA (3.6M) = SG$68pm = R310pm

Similar usage in SA will cost you tens of thousands of rands.

So I don't think we should be getting all sentimental about the hardships our poor cellular operators face in bringing us such "low" prices.

They just don't compare at all well to international prices. It is a myth.
 
Last edited:
I don't think comparing local prices and international prices will give us a good refection of what it "should cost"
Firstly labour in SA is MUCH cheaper in SA and people can be bough for a very low price.
I do understand the concept of "cost per meg" but fail to see why Joe Soap should have to pay to subsidize Mr. Nokia N90's handset.
I must admit Virgin has thrown a BIG spanner in the other SP’s works, I know that their connection is not as stable as it could/should be but given time it will be sorted out.

the end fact is that data in South Africa is still expensive and a take it or leave it situation.


And then there is the issue of data roll over...... not a use it or loose it situation.
 
Last edited:
Gatecrasher said:
MobileOne in Singapore: http://m1.com.sg/broadband/m1bb.htm

For unlimited data:

3G (384K) = SG$22pm = R100pm
HSDPA (1.8M) = SG$38pm = R173pm
HSDPA (3.6M) = SG$68pm = R310pm

Similar usage in SA will cost you tens of thousands of rands.

So I don't think we should be getting all sentimental about the hardships our poor cellular operators face in bringing us such "low" prices.

They just don't compare at all well to international prices. It is a myth.
Click to expand...

Loooking at their T&Cs:

Data included in your bundle is for use in Singapore only and subject to M1's Fair Use Policy as follows:
14.1 Your usage should not be:
(a) Excessive (downloading or uploading more than 2 GB each month inclusive of video streaming, video calls, email access, VOIP calls, downloading and uploading of any content); or .
Click to expand...

So I agree R173 is still a good price for 2 GB per month.
SA comparitive prices are not tens of thousands but rather R1000 (currently).

Some other factors:
Singapore coverage area = 640 sq km
SA coverage area = 640 000 sq km +

Singapore population = 4.5 million
SA population = 45 million +

Viable (over 15, regular income, educated, IP aware) customer per sq km:
Singapore: 5000
SA: 8



Unfortunately our demographics make a big difference in delivering the same service and price.
 
Insider said:
Loooking at their T&Cs:



So I agree R173 is still a good price for 2 GB per month.
SA comparitive prices are not tens of thousands but rather R1000 (currently).

Some other factors:
Singapore coverage area = 640 sq km
SA coverage area = 640 000 sq km +

Singapore population = 4.5 million
SA population = 45 million +

Viable (over 15, regular income, educated, IP aware) customer per sq km:
Singapore: 5000
SA: 8



Unfortunately our demographics make a big difference in delivering the same service and price.
Click to expand...

MTNDD adds this thread to his general knowledge data base

MTNDD
 
Just to clarify:

Snowolf said:
Firstly labour in SA is MUCH cheaper in SA and people can be bough for a very low price.
Click to expand...
Labour is not the same as skilled, qualified support engineers and technicians.
E.g. One additional Cisco professional to supervise and plan the packet data environment will cost R500k to R900k in SA. That requires 450 GB (100 average data subscribers) of out-of-bundle usage to pay one salary for the year.

Snowolf said:
I do understand the concept of "cost per meg" but fail to see why Joe Soap should have to pay to subsidize Mr. Nokia N90's handset.
Click to expand...
The principle is that Mr. Nokia N90 subsidises his own data usage by making a lot of voice calls in addition to data usage. It is not reliant on cross-subsidisation by other voice-only users.
 
You must log in or register to reply here.
Back
Top
Sign up to the MyBroadband newsletter
X