Will 8ta's 10GB worth R200 a month continue indefinitely?

[Sly21C]

My 10GB contract with 8ta's 10GB offering is about a year old now and I can't stop wondering if 8ta will still offer such a low priced offer after 24 months? Which will be in 2013.

I read an article or two about Telkom's poor performance on the stock market, and about Telkom's earnings results. I remember reading that Telkom was about R1 billion in the red because of 8ta. So this begs the question if 8ta's 10B offering is sustainable? Especially when Vodacom and MTN don't offer anything remotely close to what 8ta is offering. A 10GB data bundle would cost more than R1200 a month from Vodacom and MTN, this is both for month to month and a 24 month contract. This makes me wonder even more, what's the catch? Why is 8ta's 10GB so cheap? Maybe I missed something in the terms and conditions. Maybe I'll end up paying R5000 at the end of 24 months, just like paying R30 000 after 72 months on a car while paying a very affordable monthly installment on a residual offering .

[nicroets]

With 8ta, there is a lot of startup costs. Lots of towers and equipment that has to be depreciated according to accounting rules. Lots of advertising and employee training that is expensed.

Poaching customers from the other operators takes a lot of effort. Just think about one or two members of your family who has been with Vodacom or MTN for 10 years and not very keen to move to one of the other operators. (Would South Africa be so much better if we all responded faster to new competitors, like 8ta and Capitec ? Prices would fall and service would improve)

So you missed nothing in the T&C.

At some point 8ta will try to raise their prices, by cancelling the discount. But when CellC did it, they came back with even lower prices after few months.

[Sly21C]

With 8ta, there is a lot of startup costs. Lots of towers and equipment that has to be depreciated according to accounting rules. Lots of advertising and employee training that is expensed.

Poaching customers from the other operators takes a lot of effort. Just think about one or two members of your family who has been with Vodacom or MTN for 10 years and not very keen to move to one of the other operators. (Would South Africa be so much better if we all responded faster to new competitors, like 8ta and Capitec ? Prices would fall and service would improve)

So you missed nothing in the T&C.

At some point 8ta will try to raise their prices, by cancelling the discount. But when CellC did it, they came back with even lower prices after few months.

Well said nicroets! Indeed, South Africa would be better off if consumers responded faster to new competition. Consumers are too comfortable where they are now even though they don't get value for money.

[kingrob]

I think I read somewhere that 8.ta will be offering the Internet Promo 5 (10GB for R199) at least until December, but the 8.ta rep can correct me if I'm wrong.

My existing 8.ta contract is now also one year old & definitely getting another one before the end of the year. Cheap as chips.

[Chevron]

The 8ta 10gigs special is a promotion because they are new in the market. Cant believe you guys can't see something so obvious. It's definitely not sustainable.

[ginggs]

...It's definitely not sustainable.

Jannie, is that you?

[kingrob]

Jannie, is that you?

[Beri]

Emds in march 2013

[McGuywer]

@ Beri,

Source?

[Christiaan]

Source - 8ta Rep on this forum

Told me all the promotions will end at the end of March 2013. They extended it once as well. Who knows, they might extend it again.

[Chevron]

My 10GB contract with 8ta's 10GB offering is about a year old now and I can't stop wondering if 8ta will still offer such a low priced offer after 24 months? Which will be in 2013.

I read an article or two about Telkom's poor performance on the stock market, and about Telkom's earnings results. I remember reading that Telkom was about R1 billion in the red because of 8ta. So this begs the question if 8ta's 10B offering is sustainable? Especially when Vodacom and MTN don't offer anything remotely close to what 8ta is offering. A 10GB data bundle would cost more than R1200 a month from Vodacom and MTN, this is both for month to month and a 24 month contract. This makes me wonder even more, what's the catch? Why is 8ta's 10GB so cheap? Maybe I missed something in the terms and conditions. Maybe I'll end up paying R5000 at the end of 24 months, just like paying R30 000 after 72 months on a car while paying a very affordable monthly installment on a residual offering .

The 10gig deal is sold at below cost to gain market share. No doubt about it. They are new with empty networks. Might as well get some cheap users on than not have any.

[Stochos]

Cost is hard to determine. I doubt the meme that 8ta's offer is 'unsustainable'. That is old SA monopoly thinking.
It is far better to have gleaming new equipment being used at capacity than sitting at low utilisation rates. Half a loaf is better than none.

We can all agree that competition is a marvellous thing!

[surfs-up]

My first 10GB 8ta deal is also one year old. I needed more that 10 GB data, so just last week I bought a second 10GB per month from 8ta. I tried the 10GB night owl data but cancelled that - I could never stay awake, or rise early enough to use night owl. So I decided to just get a second regular 10GB deal.

Very happy with 8ta, they are the fastest data network in my suburb. If something happens to them...i seriously doubt it will....but if they do, like you worry over, then we have a contract with them. Think consumer protection act - you won't lose out.

[NN123]

this is both for month to month and a 24 month contract.

I dont think so

[Ghost02]

I also got the 8ta 10gb deal, got it in November, is it a 12 or 24 month contract?

edit: I saw the posts about 24 months but was pretty sure that it was 12?