Alan Knott-Craig talks network quality and pricing

I wonder if "Cell C still loves Android" after this :P
 
Great, so CellC will just collude (even more) with the other 2 now. Any CEO that says price is not an effective competitive mechanism is setting himself up to collude over pricing with his competitors. When consumers ask how come everyone is so expensive and competition in the market is not driving down pricing, they reply with reasons like "value added", "quality of service" and an old favourite in the data price game : "unsustainable" (all of these are perception type criteria that are not really measurable). Vodacom's service is just as bad as CellC's, they just somehow have a reputation for "quality" over CellC, and the consumer therefore is willing to pay the stupid prices. But really there's no actual difference, it's just a perception.

It is possible to do good service AND good prices, just ask Richard Branson. Anyone like telling you differently is lying and just trying to justify their anti-competitive business model.

Bah! If only ICASA was a proper regulator like OFCOM in the UK. Then you'd see proper regulation and a competitive environment.
 
"The new Cell C CEO"... his future appointment has been announced. He is still months away from actually becoming the new CEO.
He ain't there yet! "Incoming CEO" may have been a better description.
 
MrG said:
I wonder if "Cell C still loves Android" after this :P
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Best thing they could do to compete is scrap the stupid pricing plans they have now and introduce 3 or 4 (max) plans in their place that include a smartphone (cheapest Android is around R800), a decent amount of data (you can even give uncapped, heck for a smartphone 300MB is pretty much uncapped if you limit tethering) and promote the hell out of them. Do the opposite of what they other 2 are doing (a lot of confusing pricing plans that make it very difficult for the consumer to decide which one is best for them) and try to solve the problems they are creating for consumers. By simplifying your price plans you can simplify your support, and therefore properly train your support personnel to give quality service. Then you only have to make sure your network is maintained properly and already you're ahead of the other 2 in terms of service and quality. There's a reason CellC couldn't get quality improvement right until now : it's too damn complicated and they're trying to do what the other 2 are doing. Do something completely different and consumers will flock to you.
 
rbarryza said:
Great, so CellC will just collude (even more) with the other 2 now. Any CEO that says price is not an effective competitive mechanism is setting himself up to collude over pricing with his competitors. When consumers ask how come everyone is so expensive and competition in the market is not driving down pricing, they reply with reasons like "value added", "quality of service" and an old favourite in the data price game : "unsustainable" (all of these are perception type criteria that are not really measurable). Vodacom's service is just as bad as CellC's, they just somehow have a reputation for "quality" over CellC, and the consumer therefore is willing to pay the stupid prices. But really there's no actual difference, it's just a perception.

It is possible to do good service AND good prices, just ask Richard Branson. Anyone like telling you differently is lying and just trying to justify their anti-competitive business model.

Bah! If only ICASA was a proper regulator like OFCOM in the UK. Then you'd see proper regulation and a competitive environment.
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+1
 
rbarryza said:
Great, so CellC will just collude (even more) with the other 2 now. Any CEO that says price is not an effective competitive mechanism is setting himself up to collude over pricing with his competitors. When consumers ask how come everyone is so expensive and competition in the market is not driving down pricing, they reply with reasons like "value added", "quality of service" and an old favourite in the data price game : "unsustainable" (all of these are perception type criteria that are not really measurable). Vodacom's service is just as bad as CellC's, they just somehow have a reputation for "quality" over CellC, and the consumer therefore is willing to pay the stupid prices. But really there's no actual difference, it's just a perception.
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AKC has never been a champion for consumers, so there's nothing new in this.
 
Allin said:
AKC has never been a champion for consumers, so there's nothing new in this.
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companies can't run off good will, surely?
they need to strike a balance between price point and qos for the consumer, and returns vs market share for the investor.
the only way they can pass on savings to the consumer is to function more efficiently and innovate more than the opposition.
it will take a while before they can do this in a reliable sustainable fashion. i'm not sure there will be a lot of short-term wins with the competition so entrenched in the market already...
 
Price counts for 90% for me. I have used all the providers and i was ok with all of them. Some days they are slow and some time they are great. So when upgrades come i vote for price.....Yes sir price. Think about that Craig
 
murraybiscuit said:
yeah, virgin mobile really ripped the za market apart :D
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Because they were hamstrung by having to work through a second rate network like CellC, and had to pay them their ridiculous base rates. They tried the simplifying move, but couldn't do the cheaper move.
 
Yeah, AKC has to familiarise him self with... What nonsense, surely he should have done that before taking on the job??? Utter nonsense!!!
 
rbarryza said:
Because they were hamstrung by having to work through a second rate network like CellC, and had to pay them their ridiculous base rates. They tried the simplifying move, but couldn't do the cheaper move.
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lol. i can see the revised title: losing my virginity - how i got raped in south africa!!!
sorry, ot.
 
“You cannot price yourself into the game,” said Knott-Craig.
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I was lucky to renew my two 5 gig sims last year before the price went up, and after reading this I hope that I will still be one when my sims expire. I really like me CellC connection.

Price is the ONLY reason I am a CellC customer.
 
ColdComfort said:
I was lucky to renew my two 5 gig sims last year before the price went up, and after reading this I hope that I will still be one when my sims expire. I really like me CellC connection.

Price is the ONLY reason I am a CellC customer.
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Agree.
 
while data is on top of consumers’ minds, voice revenue is what finances data
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In denial or still has duopoly tendencies,data is king and data will be king.Price and provision it in innovative ways and tidy revenues will be generated.This reminds me of Kodak who didn't embrace digital photography at first, now I've just read have filed for bankruptcy.
 
His statement that 'price is not an effective competitive mechanism' indicates the certain death knell of Cell C.

I'm afraid this statement indicates Knott-Craig has already torpedoed the ship before he even takes the helm.

With Cell C recently climbing into bed with the ANC by being their sole communications provider at Manaung and beyond, and the loss of most of their senior management team in the last few months, the future of the company looks pretty bleak to me.

Knott-Craig has never been a champion for the consumer, but rather a faithful servant of unscrupulous shareholders who are out to rob the poorest of the poor country. A leopard cant change it's spots, and I'm certain he wont do anything meaningful for us consumers.

Good bye Cell C.
 
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