Explain this to me

[marine1]

You go into Vodacom for example and sign up with a 24 month contract, say a Talk 500.
On this contract you are entitled to certain phones for free.

Now the question.
I go into Vodacom and sign up with them but on a month to month therefore not asking for 24 month and not asking for free phone.
Surely the cost of the Talk 500 should be less?
You are not getting anything for free so why is it not cheaper?

 

[jargon7]

Haha you are dealing with one of the 'super powers' in the mobile industry.

 

[murraybiscuit]

well then, how on earth would they rape you?
seriously though, cell-c has valuechat.
no hardware, no monthly minimum, just a contract, month-to-month, with credit, billed in arrears.
strangely enough, none of their people seem to push it too much. but it's there on their website.

 

[marine1]

well then, how on earth would they rape you?
seriously though, cell-c has valuechat.
no hardware, no monthly minimum, just a contract, month-to-month, with credit, billed in arrears.
strangely enough, none of their people seem to push it too much. but it's there on their website.

I hear you but based on my previous dealing with all 3, Vodascum seems to be the least problematic out of all 3.
Surely this needs further investigating?

 

[davemc]

The aim is to flood the market with as many handsets as possible.

The more handsets out there, the more people will end up using them, and the more the industry will grow around supporting and maintaining them.
It's quite convenient to let the customer pay for the handset population growth.

 

[HapticSimian]

As a long-term prospect, locking you into a 2-year contract is likely to be far more profitable for them. With a month-to-month deal the SP has no assurance of your continued patronage, so why attempt to lure you with a lower subscription amount?

Sucks...

 

[Creag]

The aim is to flood the market with as many handsets as possible.

The more handsets out there, the more people will end up using them, and the more the industry will grow around supporting and maintaining them.
It's quite convenient to let the customer pay for the handset population growth.

Handsets become a cheap yet valuable commodity. Cheap - there's an excessive amount of them (how many of us have spares). Valuable - the excess will generate greater revenue, particularly in the prepaid market.

Even when they are reported stolen, I get the impression that they are not truly blacklisted. Many of these handsets, which should be blacklisted, go on to perpetuate or are used to commit further crime.

 

[Ockie]

Should u not require a phone and want reduced subs, then u may sign up for a no phone 24 month contract and get reduced subs.

 

[marine1]

Should u not require a phone and want reduced subs, then u may sign up for a no phone 24 month contract and get reduced subs.

Ahh but you still locked in for 24 months

 

[Ockie]

Correct, as the sp can then be assured of a revenue stream from u for 24 months. Therefore they have a incentive to offer u a discounted sub instead of a phone should u so desire.

 

[Park@82]

What happened to short term contracts: http://mybroadband.co.za/vb/showthread.php/130233-Important-information-about-cell-phone-contracts?