How MTN lost the lucrative Rain deal to Vodacom

[Jamie McKane]

How MTN lost the lucrative Rain deal to Vodacom

In November 2016, WBS (now known as Rain) announced that it had signed a facilities leasing and roaming agreement with Vodacom.

This multi-billion-rand deal is helping Rain to accelerate its LTE-A network rollout and gives Vodacom access to additional spectrum to serve the growing demand for data on its network.

 

[Joseph matane]

Dam you MTN i could be having Rain Fixed LTE and Rain Mobile coverage by now because MTN tower is less than 1KM from my home and Vodacom tower is 2km away from my home now i don't have even rain mobile coverage yet

 

[deweyzeph]

Anyone find it crazy that Vodacom and MTN, both massive behemoths, are approaching small minnows to roam on their networks? I would have thought it would be the other way around.

 

[WaxLyrical]

Anyone find it crazy that Vodacom and MTN, both massive behemoths, are approaching small minnows to roam on their networks? I would have thought it would be the other way around.

Borrow existing infrastructure instead of building new.
More cost effective.

 

[DXL]

Anyone find it crazy that Vodacom and MTN, both massive behemoths, are approaching small minnows to roam on their networks? I would have thought it would be the other way around.

I would like to rent your new Bakkie for R150 a day ? You agree and we have a deal.

I rent the Bakkie out at R500 a day and make a R350 profit with my prices.

Do you get the picture ? There is so much data to sell that there is not enough capacity.

You buy full access from Rain and Liquid at R200 000 per month per Base station where you need capacity.
Then Resell at R149 a Gig for the month you sell a 2000 Gigabytes = 2 Terabytes

R149 x 2000 = R298 000 - R200 000 ( Cost ) = R98 000 Free Money

What is good about this is that it allows the new operators to Build capacity everywhere which is good for consumers in the long run.