Data will be free: Vox Telecom chief executive

Now that I think about it Vox are already experimenting with the model when you look at the Samsung tv + 1000 gigs data promotion. As long as you don't pay more, getting extras for the same money benefits the consumer. Business likes it because it differentiates their products, and consumers like it because they get "free stuff".
 
I seems to me that you guys are not understanding what he means. He isn't saying access to data will be free, but rather that data itself will come free as part of a package. E.g. line rental + data or TV + data. For instance you might pay R500 for line rental, and then after that nothing for the actual gigs you use.

Yup, most ISP overseas work like this. You buy access to whatever speed you need, no extra data costs involved.

But it will take SA a long time to get rid of the way Telkom initially decided to sell data instead of just access speed.
 
Good old adage - 'no such thing as a free lunch'

The costs of the data are just embedded elsewhere - either advertising, conditional on other payments, included in the value of the content, or other innovative ways. It's as simple as that.

Also, if you extrapolate data costs on an annual percentage basis you tend towards zero but never hit zero. Meanwhile the costs of moving data and the volumes are going up exponentially - so that even with the radical grops, there are still a lot of people making a lot of money from data.
 
Jacques has a good point. Data should not be sold by the gigabyte..

ISP's pay per mbps for transit. It's not like petrol :)
 
I seems to me that you guys are not understanding what he means. He isn't saying access to data will be free, but rather that data itself will come free as part of a package. E.g. line rental + data or TV + data. For instance you might pay R500 for line rental, and then after that nothing for the actual gigs you use.

Once wholesale data prices drop low enough to provide the average user with net for a month ( say 100-200 gigs for R50), then it makes sense as a provider to throw that data in for free with other things you can charge more for. Perhaps fiber line rental, something like netflix, or 500 gigs of drive space in the cloud, etc.

+1.The way I understand it he makes perfect sense,you will pay for the medium of connection so your adsl line,Fiber line etc and data will simply be included since that is how they the ISP's get charged anyway they pay per Mb of stream not per Gb.

This makes perfect sense come to think about it.
 
Now that I think about it Vox are already experimenting with the model when you look at the Samsung tv + 1000 gigs data promotion. As long as you don't pay more, getting extras for the same money benefits the consumer. Business likes it because it differentiates their products, and consumers like it because they get "free stuff".

Pity is that us paying customers seem to be suffering as a result

Ever since that promotion the Vox network has been plagued by issues

(touch wood it's fine now, but....)
 
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