Cell C increases subscriber base by 27%

[rpm]

http://mybroadband.co.za/news/Cellular/901.html

 

[Syndyre]

I wonder how many of those 27% are just using the free weekend mins?

 

[ldmelsa]

I wonder how many of those 27% are just using the free weekend mins?

When the 'free' minutes work, that is!

 

[Franna]

So their network is currently running at 127% capacity - because at the moment I can't get through to a particular CellC subscriber.

 

[Abe]

This can only have a good impact on the market. VC and MTN will have to follow suite and start offering free weekend calls otherwise Cell C is going to start stealing market quicker and quicker.

 

[rendan]

RPM either you guys have the wrong info or Fin24 is wrong cos they reported a 37% increase... Just though id let you know

heres the link http://www.fin24.co.za/articles/default/display_article.aspx?ArticleId=1518-24_2160515

 

[Tahir Ally]

This can only have a good impact on the market. VC and MTN will have to follow suite and start offering free weekend calls otherwise Cell C is going to start stealing market quicker and quicker.

Not true.Alot of frustrated Cell C and Virgin mobile customers are moving over to Vodacom and MTN because they cant make or receive calls or sms .
These customers are all business clients

 

[AirWolf]

RPM either you guys have the wrong info or Fin24 is wrong cos they reported a 37% increase... Just though id let you know

heres the link http://www.fin24.co.za/articles/default/display_article.aspx?ArticleId=1518-24_2160515

A 27% increase in subscriber base and 37% increase in EBITDA is specified in both articles

 

[Syndyre]

This can only have a good impact on the market. VC and MTN will have to follow suite and start offering free weekend calls otherwise Cell C is going to start stealing market quicker and quicker.

I don't see that as likely, I don't know anyone that's actually moved from Voda/MTN to Cell C, people might have bought a prepaid sim to use the free mins but they're still using MTN/Voda as their primary network.

This seems to be more what's happening:

Not true.Alot of frustrated Cell C and Virgin mobile customers are moving over to Vodacom and MTN because they cant make or receive calls or sms .
These customers are all business clients

 

[AirWolf]

I don't see that as likely, I don't know anyone that's actually moved from Voda/MTN to Cell C, people might have bought a prepaid sim to use the free mins but they're still using MTN/Voda as their primary network.

This seems to be more what's happening:

That might be true, but I still think that they will gain more customers than they loose --> people will have to use up the air time they purchased to activate the free weekend calls and this is what might have caused the current boost in users as well as financial data.

 

[Abe]

I don't see that as likely, I don't know anyone that's actually moved from Voda/MTN to Cell C, people might have bought a prepaid sim to use the free mins but they're still using MTN/Voda as their primary network.

The prepaid market is where they wilk gain a lot. Those guys aren't just going to chop and change sims. They will get a Cell C sim and recharge every friday. If Cell C start to pick up a number of prepaid clients who generally receive calls, they will start to even out the score with VC and MTN as that is presently where most of their calls terminate.

I agree, however, that they need to put some sort of limit on the free weekend calls. It is putting a tremendous load on their network. They will probably have to push the rate up to about R15/R20 per week to decrease the amount of callers.

Edit: I also think that this is why MTN and VC can't afford to let it go on too long unanswered.

 

[Syndyre]

The prepaid market is where they wilk gain a lot. Those guys aren't just going to chop and change sims. They will get a Cell C sim and recharge every friday. If Cell C start to pick up a number of prepaid clients who generally receive calls, they will start to even out the score with VC and MTN as that is presently where most of their calls terminate.

I agree, however, that they need to put some sort of limit on the free weekend calls. It is putting a tremendous load on their network. They will probably have to push the rate up to about R15/R20 per week to decrease the amount of callers.

Edit: I also think that this is why MTN and VC can't afford to let it go on too long unanswered.

True, Cell C are clearly aiming at a different market to Voda/MTN, as they've stated, so maybe they don't mind losing a few contract customers. The reality is Cell C are close to bankruptcy and willing to try anything I suppose.

 

[Abe]

The reality is Cell C are close to bankruptcy and willing to try anything I suppose.

I think we can blame poor management and cell termination rates for that. Can you imagine the response if they had done something like Woza Weekend when they first launched instead of just sitting back and expecting the doll to roll in.

 

[AirWolf]

I think we can blame poor management and cell termination rates for that. Can you imagine the response if they had done something like Woza Weekend when they first launched instead of just sitting back and expecting the doll to roll in.

They would not have had the resources to implement this offer in the beginning.

 

[TiredOfWaiting]

That might be true, but I still think that they will gain more customers than they loose --> people will have to use up the air time they purchased to activate the free weekend calls and this is what might have caused the current boost in users as well as financial data.

Replacing existing customers with a high ARPU and replacing them with el Cheapo's with virtually 0 ARPU doesn't exactly make good business sense.

 

[rendan]

A 27% increase in subscriber base and 37% increase in EBITDA is specified in both articles

o
Sorry abt that then...

 

[Syndyre]

I think we can blame poor management and cell termination rates for that. Can you imagine the response if they had done something like Woza Weekend when they first launched instead of just sitting back and expecting the doll to roll in.

I'm guessing they couldn't really implement something like this until the majority of their traffic was carried on their own network as opposed to Vodacom's. If they did it when they first launched they'd probably have been paying Vodacom for every "free" min used, not exactly profitable.

Replacing existing customers with a high ARPU and replacing them with el Cheapo's with virtually 0 ARPU doesn't exactly make good business sense.

Not at all, especially when the latter will be using a large amount of network resources over weekends at virtually zero cost.