Jolt for the Big Guys

[rpm]

http://www.mybroadband.co.za/nephp/?m=show&id=5048

Do you think MXit, the instant messaging software for cellphones, is a disruptive technology? New software being developed by small, Pretoria-based company could transform cellular voice communication and revive fixed-line operators.

 

[dam]

Quote: "MTN has already threatened to impose penalties on anyone who uses its data network to make voice calls. The company has warned that it could even terminate customers’ contracts."

Nooooooo! Technology will always be slowed because the big guys want to make more money. The cost of living could be a fraction of what it is if we used technology for making living cheaper instead of letting big corporations block it to make themselves richer.
We should be allowed to use data networks for voice if we want, what is the argument against it? Consumers not getting ripped off enough? That should stand up well in court!

 

[Cara]

How would you defend this in court? Just wondering if the cellular guys can stop it but I think since it is their network consumers don't have a leg to stand on unless there is something unconstitutional about it all. Any lawyers out there who can give an informed opinion?

 

[kaspaas]

How would you defend this in court? Just wondering if the cellular guys can stop it but I think since it is their network consumers don't have a leg to stand on unless there is something unconstitutional about it all. Any lawyers out there who can give an informed opinion?

If MTN has a rate filed and approved at ICASA for VOIP via GPRS/3G or any other data carrier, the law is on their side.

 

[The_Unbeliever]

Just as I've thought - people will find ways and means on getting their message across at less money...

The telcos should get a Clue and lower their tariffs so as to lure more and more people to use their services - but these being so expensive people WILL find ways and means to save a penny...

Just thought yesterday -

For the sake of clarity, let's assume the price per call per minute is R10.00. Overhead costs such as salaries etc is not included.

Out of a possible 80 people, only 20 can afford it. That brings R200 per minute in for the operator.

Should the operator decide that R200 per minute is not enough, the operator can either raise or lower the price.

Raising it to R12.00 will give a profit of R240. Four people decide that they cant afford this and terminates their contracts, which leaves the operator with R12 x 16 = R192. So they have to jack up their price to make up for the loss... up to R15, which will gives them R240.

Another two customers bugger off, leaving them with R210.

So they have 14 customers, all grumbling about the high price and nowhere to go... only with R210 profit per minute. 4 customers decide to call it a day, and walks out - and that leaves them ultimately with R150. At the end of the day, the operator is poorer off and with less customers - and this is a prime recipe for any kind of corporation to go into liquidation.


BUT...

on the other hand...

Same operator, same 20 customers. Same boring old R200 per minute profit. The operator decides to take a gamble and cut their price from R10 to R8. They also loaned money from a bank to tide them over for a few months.

This brings them R160 in.

All of a sudden 6 people decide that they are able to afford the lower prices, and sign up - which lands the operator a profit of R208.

A further price reduction sees the price drops to R6... leaving them with a profit of R156 - but wait... because now 10 people decide that R6 is a lekker low price, and they sign up... giving a total of 36 people and a profit of R216.

The price remains at R6 for a while, and 10 people get a promotion - leading to 10 more customers and a profit of R276.

Operator having paid off their debt, now drops the price to an all-low of R4... and they get a profit of 46 people x R4 = R184.

20 other people, having heard of the low prices decide that things are not too bad with R4, and sign up... leading to a profit of 66 people x R4 = R264.

A while later the remaining 34 people sign up, giving the operator 100 people and R400 in profit, leading to a further price reduction... and so on and so on...

What's wrong with this picture?

 

[Tanarri]

No more fixed line calls and normal mobile calls. Sounds like heaven on earth.

*golfclaps Telkom, MTN, Vodacom, CellC, Virgin Mobile*

Charlie Delta out.

 

[jamesbond]

high rates

I agree with Lbrarian. I had a 1 year contract with 3 in the UK. I paid £5 (R100) for 500 anytime minutes ... R0.20 per minute ... Even when my minutes were finished I preferred to spend money with them, just because they were "nice" to me for giving low call rates. I had my other phone with the nice number, but used it just for incoming calls. The more they gave me, the more I gave back! If MTN is so scared they are going to take business from them, why not make it so cheap that people will not use 3rd party software. It will be easier just to make a normal call. But why should they, people pay the high prices, because, what else are you gone do ... Bring the software ! Perhaps the SP's will give better services and prices !

 

[_TrXtR_]

mtn knows they going to loose all their clients in the next 2 years because of mnp. So they allready given up the race.

Aw well, not all companies can be winners.

 

[BobJones]

This skirts the real issue - Why is the cost of the one thing the network does really well - full duplex voice - priced so expensively that people will do almost anything, including accepting crappy half duplex messaging and txt as a substitute.

Just imagine far into the future : Starship Enterprise closes with Klingon battleship.
Kirk: Hail that ship, tell them they're too close to entering the Neutral zone.
Uhuru: Sorry captain, I can't get the message thru
Kirk: What! What's the problem.
Uhuru: Vodacom says we don't have enough credit for a video call.
Kirk: but i just bought a top-up yesterday for 20Billion Galactic dollars, what happened to all of that.
Uhuru: Scotty made a long distance call to starfleet for those engine upgrades you wanted.
Kirk: Damn crappy warp drive! Well get the message thru anyway you can.
Uhuru: Captain, I think I can get an SMS to them.
Spock: Illogical, that will take hours, they'll cross into the neutral zone before the SMS gets thru.
Bones: Uhuru, try Mixit.
Kirk: Great idea Bones. Is the message getting thru, Uhuru?
Uhuru: No captain, the Klingons have blocked my messages, they say we're not on their trusted contact list.
Kirk: Damn blast Vodacom! Arm the photon torpedoes, we'll just have to send the message another way

 

[krycor]

ROFL.. nice star trek [-]episode[/-] story there(And finally the strike through makes an appearance ) but yah.. voip this way is cheap. dang seems these guys beat me to it.. oh well. Still I am trying to learn how to use java2 me but dreading the book.

 

[kilo39]

Just imagine far into the future : Starship Enterprise closes with Klingon battleship.

Ah thanks BobJones, that story brought a well needed laugh.

Ya, voice calls so expensive nobody (except business it seems) wants to make phone calls - I certainly don't.

Ya, but we wouldn't want people sitting on their phones 'cause that would clog our crappy network (or whatever).

What is this philosophy of paucity in SA while big business gets stinking rich generating profits between themselves and driving up the inflation rate.

And the same goes for government.

When is big business going to be separated from this neat little communist state where they reign supreme, and no matter the screaming hordes at the gates. Don't they realise Stalin got it wrong?

 

[Prometheus]

So I push the little button and who exactly gets the message?

How would you defend this in court? Just wondering if the cellular guys can stop it but I think since it is their network consumers don't have a leg to stand on unless there is something unconstitutional about it all. Any lawyers out there who can give an informed opinion?

Uncompetitive practice perhaps? Although we know that only costs you a couple million of your couple billion and it's business as usual.

 

[Debbie]

Just as I've thought - people will find ways and means on getting their message across at less money...

The telcos should get a Clue and lower their tariffs so as to lure more and more people to use their services - but these being so expensive people WILL find ways and means to save a penny...

Just thought yesterday -

For the sake of clarity, let's assume the price per call per minute is R10.00. Overhead costs such as salaries etc is not included.

Out of a possible 80 people, only 20 can afford it. That brings R200 per minute in for the operator.

Should the operator decide that R200 per minute is not enough, the operator can either raise or lower the price.

Raising it to R12.00 will give a profit of R240. Four people decide that they cant afford this and terminates their contracts, which leaves the operator with R12 x 16 = R192. So they have to jack up their price to make up for the loss... up to R15, which will gives them R240.

Another two customers bugger off, leaving them with R210.

So they have 14 customers, all grumbling about the high price and nowhere to go... only with R210 profit per minute. 4 customers decide to call it a day, and walks out - and that leaves them ultimately with R150. At the end of the day, the operator is poorer off and with less customers - and this is a prime recipe for any kind of corporation to go into liquidation.


BUT...

on the other hand...

Same operator, same 20 customers. Same boring old R200 per minute profit. The operator decides to take a gamble and cut their price from R10 to R8. They also loaned money from a bank to tide them over for a few months.

This brings them R160 in.

All of a sudden 6 people decide that they are able to afford the lower prices, and sign up - which lands the operator a profit of R208.

A further price reduction sees the price drops to R6... leaving them with a profit of R156 - but wait... because now 10 people decide that R6 is a lekker low price, and they sign up... giving a total of 36 people and a profit of R216.

The price remains at R6 for a while, and 10 people get a promotion - leading to 10 more customers and a profit of R276.

Operator having paid off their debt, now drops the price to an all-low of R4... and they get a profit of 46 people x R4 = R184.

20 other people, having heard of the low prices decide that things are not too bad with R4, and sign up... leading to a profit of 66 people x R4 = R264.

A while later the remaining 34 people sign up, giving the operator 100 people and R400 in profit, leading to a further price reduction... and so on and so on...

What's wrong with this picture?

Nicely spelled out example.

I have yet to come across a case anywhere in the world where telecoms liberalisation combined with a lowering of prices has resulted in a smaller telecoms pie. In every case I know of, just the opposite occurs- the overall amount of money people spend on telecoms services actually increases. The 'size of the pie' increases when more people can access services.

For a real world example, look at what happened in SA with the pre-paid cellular model.

SA needs to repeat these sort of things.

Anyway, nice post T_L.

 

[antowan]

Quote: "MTN has already threatened to impose penalties on anyone who uses its data network to make voice calls. The company has warned that it could even terminate customers’ contracts."

Nooooooo! Technology will always be slowed because the big guys want to make more money. The cost of living could be a fraction of what it is if we used technology for making living cheaper instead of letting big corporations block it to make themselves richer.
We should be allowed to use data networks for voice if we want, what is the argument against it? Consumers not getting ripped off enough? That should stand up well in court!

If big companies have a problem with people making voice calls cheaper using a different tech, then is just shows us that their innovation drive is lacking because there clearly are cheaper ways to talk...