2005-02-09: MTN's Broadband Plans

rpm said:
Hi guys

What amazes me is that not one of these companies tries to build up a massive user base with a very low offering. If MTN, for example, brings out an offering for around R 200-00 people will migrate to them in their thousands. While they might make a short term loss, their only aim after building up this large user base should be to remain competitive. People will not leave them as long as they remain competitive, and in the long term they will certainly show larger profits than their competitors. It is further likely that clients will purchase other services (like mobile contracts) from the same company as they support for other services… I wish we could have a forward thinking company entering the market! They will shake things up quickly!

Regards,

RPM
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The thing is I'm not sure whether it's possible for a company to offer a R200 service and still make a profit with Telkom's control on international bandwidth. It may just be too expensive. The other problem is cellphone infrastucture as I understand it cannot support a large amount of data users, apparently the contention is a killer (correct me if I wrong). At the moment there is probably very little incentive for a company like MTN to lower their prices, the risk may just be too great to them.
 
martin said:
...
At the moment there is probably very little incentive for a company like MTN to lower their prices, the risk may just be too great to them.
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You know the old saying "Don't make your problems my problems", well this is the message the consumers of SA need to give to MTN CellC Vodacom WBS Sentech, you name it! If the big boys made a big enough stink (which they could do easily both in & out of court & parliament), then they could pressure government into squashing the Big Bug from Men in Black, that is Telkomonopoly. However these companies don't do a thing bcos they are profiteering right alongside Telkomonopoly.
 
ic said:
You know the old saying "Don't make your problems my problems", well this is the message the consumers of SA need to give to MTN CellC Vodacom WBS Sentech, you name it! If the big boys made a big enough stink (which they could do easily both in & out of court & parliament), then they could pressure government into squashing the Big Bug from Men in Black, that is Telkomonopoly. However these companies don't do a thing bcos they are profiteering right alongside Telkomonopoly.
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Exactly! As long as they're coining it there's really very little reason for them to spring into action.
 
Surely this has to be a mistake:
Quote:
He acknowledges that at R10 per megabyte per second, MTN's download rates are quite expensive, but prices should drop as data usage picks up.
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He probably meant that for the first second after you signed up [24 month contract?] you only pay R10 p/mb, then after that you pay the "real" prices (which if i translate that horrible table correctly = R50 p/mb):

http://www.mtn.co.za/?pid=11468

Am i missing something? When a company actually sells a "GPRS 2MB" package, you know you're going to be sucked dry.

So lets see, R50 p/mb or R2 p/mb ...hmmm. "Conservative Approach" = "Telkom Approach" ? I mean come on what sort of company sits on their behinds with prices like that? Geez
 
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If we moaning old hags (:D) had anything at all to do with Vodacom dropping the GPRS prices, then it goes to show you, do the same & MTN will take such flack they will follow suit - this is what I meant when I said consumers initiate price wars, not the service providers. So moan & complain until MTN have the savvy to give the forum a dedicated support person & drop their prices. What have we to lose?
 
What MTN actually told the media:

Vodacom caught us with our pants on our ankles when they announced their R2/MB data rates.

We know our loyal clients are expecting us to follow, and we see them running to Vodacom in droves. Please clients, stay with us a little longer, and just maybe, we will take care of you!

Right now it is impossible for us, MTN, to match our rival's pricing, nevermind undercutting it. But we promise, that we will roll out the best service available. Obviously there will be a premium for such excellent service, but you won't mind the extra cost.

At MTN we need the extra cash you, our loyal clients, so graciously provide us every month to finance the dividends our shareholders demand. And anyway, you are tied up in a 24 month contract!

'Bye till the next financial year!
 
diabolus said:
He probably meant that for the first second after you signed up [24 month contract?] you only pay R10 p/mb, then after that you pay the "real" prices (which if i translate that horrible table correctly = R50 p/mb):

http://www.mtn.co.za/?pid=11468

Am i missing something? When a company actually sells a "GPRS 2MB" package, you know you're going to be sucked dry.

So lets see, R50 p/mb or R2 p/mb ...hmmm. "Conservative Approach" = "Telkom Approach" ? I mean come on what sort of company sits on their behinds with prices like that? Geez
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Yeah, the whole time while reading this thread I was thinking to myself, "Im sure its R47 a meg"

Anyways MTN is useless, Vodacom has killed them at this point, they will need to make changes soon If they want to keep their existing data customers,

Oh wait what am I saying Cellular providers lock you into 2 year contracts, no risk of that :rolleyes:
 
has there been any word from the mobile co's on how they are going to drop prices now that they can self-provide and do not have to use telkom to connect up their base stations?...i have heard that they have been looking at wifi solutions which will save them immense amounts

pass it on please
 
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