Lower prices and higher profits

[jes]

Lower prices, higher profits

Research ICT Africa shows that MTN’s South African prices are much higher compared to other countries where MTN operates

 

[SweetFennyAdams]

That's because we South Africans are the subsidisers of poorer nations in Africa. 60c out of every Rand you spend on ridiculous expensive airtime and data with MTN gets syphoned off to build networks elsewhere in Africa and the middle east, and we keep paying happily.

It's the same thing with our banks, vehicle manufactures, petroleum producers and retail stores opening up all over Africa . We pay more, others get all the cheaper benefits. Our wallets are being raped in SA.

 

[cozinsky]

Is there anyone here still left with MTN? I have only 1 contract left which I will give up in October. (Down from 4 contracts).

 

[BGE]

Have never used a MTN product or service, and with their current pricing I never will!

 

[MKFrost]

That was a difficult read. Not very well written and confusing at times.

So where does the headline come in about 'Lower prices, higher profits' when the whole article is about the seemingly higher prices....

Sorry but you lost me, must probably the snow down here leading to brain freeze.....

 

[McCrazieGoalz]

That was a difficult read. Not very well written and confusing at times.

So where does the headline come in about 'Lower prices, higher profits' when the whole article is about the seemingly higher prices....

Sorry but you lost me, must probably the snow down here leading to brain freeze.....

I put it all down to the fact that it is a Friday afternoon, both you and the journo. I don't know who is more right or wrong.

But, I got the gist. i.e. the fact that MTN Ghana makes more profit from much lower prices than MTN SA. And MTN SA doesn't need to look outside of itself to see that it is ripping itself and the SA public off.

If the article's intention was to make me mad then it succeeded.

I am well and truly furious now.

I still have 14 months left on one of my 2 contracts with eMpTy-N. The other is expired and I'm waiting for a hero tab/phablet before I upgrade with it.

The sad part is, MTN SA is not much different from the alternatives - unless if I choose to stick it out with a really bad signal network.

 

[dominic]

pwned

 

[supersunbird]

Is there anyone here still left with MTN? I have only 1 contract left which I will give up in October. (Down from 4 contracts).

Yes, "financing" a phone through them in such a way its basically like a interest free loan with some airtime to phone with to boot.

Once that expires in Feb its unlikely they will ever see me again (and it was they first time they saw me lol)

And to boot their website is useless.

 

[Tomasz-London]

I put it all down to the fact that it is a Friday afternoon, both you and the journo. I don't know who is more right or wrong.

But, I got the gist. i.e. the fact that MTN Ghana makes more profit from much lower prices than MTN SA. And MTN SA doesn't need to look outside of itself to see that it is ripping itself and the SA public off.

If the article's intention was to make me mad then it succeeded.

I am well and truly furious now.

I still have 14 months left on one of my 2 contracts with eMpTy-N. The other is expired and I'm waiting for a hero tab/phablet before I upgrade with it.

The sad part is, MTN SA is not much different from the alternatives - unless if I choose to stick it out with a really bad signal network.

CellC is not as bad as you might think. Get a prepaid card and test it. I ported 4 contracts from MTN since the beginning of the year and am saving about 50% on cost.

 

[Bryn]

I put it all down to the fact that it is a Friday afternoon, both you and the journo. I don't know who is more right or wrong.

But, I got the gist. i.e. the fact that MTN Ghana makes more profit from much lower prices than MTN SA. And MTN SA doesn't need to look outside of itself to see that it is ripping itself and the SA public off.

If the article's intention was to make me mad then it succeeded.

I am well and truly furious now.

I still have 14 months left on one of my 2 contracts with eMpTy-N. The other is expired and I'm waiting for a hero tab/phablet before I upgrade with it.

The sad part is, MTN SA is not much different from the alternatives - unless if I choose to stick it out with a really bad signal network.

It's your job to test out each network in the areas that you will be needing them before taking out a contract. It costs very little to buy a few sim cards and do some speed tests. Most sim card purchases include a few rand airtime.

Thanks to this approach, I have a Straight Up contract on Cell C and a Cell C Giga200 prepaid mobile connection for the family beach house and both of these work brilliantly. My dad has an MTN home connection and gets over 10Mbps with excellent latency. All you have to do is try before you buy.

 

[Polymathic]

Why is there no table with comparative pricing or did you guys decided to post another article with the exact story (with the table) later?

 

[falcon786]

CellC is not as bad as you might think. Get a prepaid card and test it. I ported 4 contracts from MTN since the beginning of the year and am saving about 50% on cost.

Same here I ported my wife from Vodacom prepaid to a cell c contract and I ported myself from an mtn contract to a Cell C one because of savings,on average i now spend 30% more minutes on the phone and yet I save around 40% in total costs.

I did however test Cell C out in my areas I frequent before I ported especially since so many people were complaining,thankfully in my case the network is great and I have nothing to complain about.

 

[ToxicBunny]

That was a difficult read. Not very well written and confusing at times.

So where does the headline come in about 'Lower prices, higher profits' when the whole article is about the seemingly higher prices....

Sorry but you lost me, must probably the snow down here leading to brain freeze.....

“Also, the implied prices (ARPU / MOU) are much lower for MTN Ghana compared to MTN South Africa, while the EBITDA margin is higher,” said RIA.

MTN Ghana has a higher EBITDA than MTN SA, yet it charges lower prices.

 

[Yuu]

Only reason with MTN is due to AfriHost mobile and that too, it won't be permanent unless they can sustain R29/GB come February 2014.

Maybe this will turn things around for them

 

[siraman]

Yaaaaaawn...Nothing new here, did my own research in an earlier thread and my results below. Anyway did not bother to read the rest of the article about something that we all knew.

Well,well,well,what did we expect from a company that treats it's foreign customers in foreign markets better than where it originated ? Look, I might be comparing apples to oranges here but it seems they are doing better in foreign markets whilst give their customers the better deal. Exaggerating?Let's have a quick look at Ghana vs SA pay as you go and compare..

View attachment 65063

 

[Kgabogk]

This research is actually still conservative in terms of the actual mtn pricing, mtn gives 30/35% discounts on mtnzone during weekends, compare that to cell c 99cents, mtn is 100% more expensive

 

[krycor]

That's because we South Africans are the subsidisers of poorer nations in Africa. 60c out of every Rand you spend on ridiculous expensive airtime and data with MTN gets syphoned off to build networks elsewhere in Africa and the middle east, and we keep paying happily.

It's the same thing with our banks, vehicle manufactures, petroleum producers and retail stores opening up all over Africa . We pay more, others get all the cheaper benefits. Our wallets are being raped in SA.

This is what I've said for the last decade already. End of the day SA consumers get milked for low usage at a premium high cost because its the old school profitability model of the West. Go back many years and you will western countries where companies provide a service do this often.. that is till competition changed things with market liberalization which led to this model failing badly.

What we have in Sa is the same thing in every sector.. i.e fake market liberalization which incumbent leaders basically keeping things as is and i'm pretty sure they pay top dollar to the ruling party to keep the status quo.