Absolutely pathetic, they should be punished and punished hard.Is the staff writer completely deluded? The cartel-like approach to MTN and Vodacom maintaining some of the highest data prices in the world necessitate an intervention like this. Cry me a river while I enjoy cheaper data, thanks.
yeah and its always GVT's fault isnt it?Did The Competition Commission examine the government’s inability to award extra spectrum? The government should have sorted out the spectrum issue years ago. If that had happened, prices may have been lower. The reason prices are so high is that cellular providers have to procure overly expensive technology to ensure that the needs of their subscribers are met.
The Competition Commission is deluded, as, yet again, another inept government commission fails to examine all the facts, and rather spews populist rhetoric
Ok bro you welcome to keep paying inflated prices for a service, that by the way is cheaper up north than it is here in the country they are based.You should start your own not for profit cellular provider. You can fix it all yourself bro
I understand that maybe you are correct in that this "duopoly" is price gouging but this can only happen if there is no competition or if a price fixing cartel has formed. Perhaps MTN and Vodacom do have a price fixing agreement but this doesn't stop the other mobile providers from doing their part in bringing prices down similar to the way the fiber providers have caused the priced of fixed line line data to plummet since they came to market.Ok bro you welcome to keep paying inflated prices for a service, that by the way is cheaper up north than it is here in the country they are based.
I never said no profit but if you like OOB and paying the highest prices for the shitty service and products we get then you go ahead, BRO
Yep, and they could make lower profit per mb and higher turnover with sufficient spectrum.Here is Vodacom financials. EBITDA (Earnings before interest, tax, depreciation and amortization) margin of 38.9% (page 8). R86.6bill revenue, EBITDA of R33.7bill.
Also can't really see how much is spent on marketing and other fluff instead of just providing a service. Doesn't seem like they are providing a lot of value with profits like that.
You can't... it's licensed spectrum.You should start your own not for profit cellular provider. You can fix it all yourself bro
Rain is new. How did they do it?You can't... it's licensed spectrum.
They've got it all tied up and agreements with RAIN and Cell-C/Telkom to tie up more and prevent competition.
So no. You can't start your own.
Cell-C's potential deal with Telkom was killed off by the MTN Roaming agreement.
For the question of whose fault is it for high data prices - i'd give it a 2 -1 win to Government:
+ 1 Government Digital TV problem and lack of progress allocated spectrum (too busy figuring out how to many money off it- e.g. WOAN)
+ 1 Government doesn't crack down on CLEAR duopoly pricing (and price gouging, contract breaking etc.) - consumer and competition protection is ZERO (this competition commisssion thing will take another 2 years before anything comes of it (like the OOB fiasco)
+ 1 MTN/Vodacom clearly are tying up spectrum and price matching like an Econ 10.2 class would show you ...
"Would you expect the kinked demand curve to be more extreme (like a right angle) or less extreme (like a normal demand curve) if each firm in the cartel produces a near-identical product like OPEC and petroleum? What if each firm produces a somewhat different product? Explain your reasoning. "
Quel surprise... MTN And Vodacom seem to charge almost IDENTICAL prices for data?!