I think Cell C's offering will end as soon as they have the right amount of users on the network. They will raise their prices because you dont want to have a network with too much traffic due to low data prices. i.e - too many users paying next to nothing for data = network collapse lol.
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Question of the Day: How do you normally pay for purchases in stores?
Mobile broadband data prices: how low can it go?
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ShaunSA
Derailment Squad
Hamish McPanji
Honorary Master
Van Zyl is a plonk. South African mobile users are being taken to the cleaners with this.
ICASA needs to act to ensure that there is cost based pricing.Failing that they should allow more real mobile providers (virgin mobile is just a reseller in reality). But that would be wishful thinking
Kudos to Cell C. I have had no problems with their mobile data since i bought a package in January....so bye bye to Vodacom and MTN for me!!!
ICASA needs to act to ensure that there is cost based pricing.Failing that they should allow more real mobile providers (virgin mobile is just a reseller in reality). But that would be wishful thinking
Kudos to Cell C. I have had no problems with their mobile data since i bought a package in January....so bye bye to Vodacom and MTN for me!!!
SaiyanZ
Executive Member
The thing about SA is that the population is so widely spread out of the major cities. We're all subsidising towers out in the bundus so that some farmer can connect via 3G and have a tower to himself.
Prices should be cheaper in the cities and more expensive out in the bundus. I'm tired of subsidising. If we were susidising maybe 20% of their cost then it's ok. At the moment though our prices are 4-5 times higher than it should be due to subsidising.
Prices should be cheaper in the cities and more expensive out in the bundus. I'm tired of subsidising. If we were susidising maybe 20% of their cost then it's ok. At the moment though our prices are 4-5 times higher than it should be due to subsidising.
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encrypted
Senior Member
You mean 'vodacon data revenue'
---> Showing results for vodacom. Search instead for vodacon
Any way you type it you get the same thing
purejimcn
Well-Known Member
I certainly hope thats not the case. Correct me if im wrong but isn't the cost of setting up this mobile network relatively fixed? i.e doesn't matter if you have 100k, 1m or 1.5m subscribers the infrastructure will still need to be there and that cost remains almost the same. I would assume if the subscriber numbers and hence data requirements suddenly jump (to say like 5 or 10m users) then there would be upgrades that would be needed in terms of towers and backhaul capacity? but then would the significant amount of extra revenue not cover for the extra costs?
I also dont see the costs as being too much as most of the big infrastructure should be in place and the only change might be a few extra towers in congested areas and more backhaul capacity. other costs such as maintenance and marketing etc will not change much with change in subscriber numbers since they are pretty much fixed and even if there are changes it will be small.
another trick cell c is using is the 12months up front method, that helps them a lot in terms of cashflow and also reduces credit risk and would likely help decrease their external financing costs. so overall this deal seems genuinely sustainable and profitable to me. now we just need 10gb bundles for say 2999 for 12 months or even 3499 would be good
Go Cell C! I'm starting to get less interested in what My Broadband has to report as I'm starting to see a trend where "don't report negative otherwise they won't advertise with us". Come on MyBroadband, we're tech guys. Go for the jugular - don't accept this 'unsustainable' terminology. I want to know, how come when you ask VC a question they always redirect saying 'what Cell C is doing is unsustainable', instead of answering the question about why VC CANNOT do it.
murraybiscuit
Executive Member
they're being lulled into a false sense of security, as said earlier.
which isn't necessarily a bad thing. unless you're dependent on mobile data from vc or mtn.
in which case i can't help you.
Sodan
Expert Member
I guess I'm not the only one who's noticed that the quality of MBB articles have taken a serious dip lately. They basically now just regurgitate what others are saying, without putting any thought into it. Sad. Very sad.
jannievanzyl
Telecoms expert
You mean Cell C's standard bundles, ranging between 50c to 13c/MB?On prices and sustainability:
There Jannie, I corrected it for you. (You failed to mention whether you think this standard data bundle pricing is sustainable)
Yes, I think it's sustainable. Surely Cell C won't increase that price. As we well know, in this industry, it's suicide to increase pricing. So, it clearly has to be sustained.
You'll see the current mobile offers all sit in the same band. For example, Cell C's 1.2GB bundle @ R250 is 13.5% less than Vodacom's R289.
If you take a 500MB bracket, Cell C sits on R150 and VC R189 for 600MB. Normalize to 600MB for Cell C and the price difference is 4.7%.
Clearly this is the band where normal competitive activity should, and will take place.
As Lars, confirmed yesterday, their 5c/MB is a promotion and will run for a limited period. After which the normal pricing would apply, I assume.
Why are the other operators not running similar specials?, you might well ask.
Specials, or promotions, are designed to achieve a specific goal, typically at some expense. You might run a special to move dead stock or penetrate a specific segment. Standard marketing/ sales stuff, you'll agree.
What do you do when you launch a service into a market that already has a number of players and you need to create awareness and pick up customers?
One good way, maybe the only way, is to launch with a very aggressive discount for early adopters.
Something like 80% discount, on your own, normal pricing would work, don't you think?
ADDED: "Foreseeable future"? Has to be sooner, rather than later, you would agree?
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Plaasjapie
Well-Known Member
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I fully agree with you !
Plaasjapie
Well-Known Member
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How much money are you willing to bet on this statement ?
jannievanzyl
Telecoms expert
IMHO nothing will change MTN / VC will continue to operate closely... they use each other for market protection(read income protection). They are clever enough to hide the behind-the-scenes negotiations from the CompCommission... or the CC has been bought... VC couldn't give two hoots what CellC does!
I'm moving my pre-paid cellphone account to CellC as well! Telkom get no bucks directly from me, now VC won't neither!
I'm moving my pre-paid cellphone account to CellC as well! Telkom get no bucks directly from me, now VC won't neither!
How much have you got?
Typical VC stance!
McCrazieGoalz
Expert Member
How sustainable this pricing is depends largely on how well they facilitate data consumption.
As far as VC and MTN are concerned, they are effectively controling how much data people consume with their pricing. In my opinion, I think they are doing things in a reverse fashion. Instead of letting people consume more, they are reducing/limiting consumption.
In the America's, Europe and east Asia, they have moved on to speeds of 40mbps already and have average data consumption hundreds of percentages more than us and yet (or perhaps because) their pricing allows consumption.
For as long as pricing remains prohibitively high, consumption will remain low.
I am not surprised that this is the trend because it has always been the culture of South Africa to have the "haves and have nots".
To the CEOs, it would be abnormal for the guy on the street to have a connection that is as fast as his and to be able to consume as much data as him. It is just not normal to them.
So in effect we are dealing with a way of thinking and not economics here.
As far as VC and MTN are concerned, they are effectively controling how much data people consume with their pricing. In my opinion, I think they are doing things in a reverse fashion. Instead of letting people consume more, they are reducing/limiting consumption.
In the America's, Europe and east Asia, they have moved on to speeds of 40mbps already and have average data consumption hundreds of percentages more than us and yet (or perhaps because) their pricing allows consumption.
For as long as pricing remains prohibitively high, consumption will remain low.
I am not surprised that this is the trend because it has always been the culture of South Africa to have the "haves and have nots".
To the CEOs, it would be abnormal for the guy on the street to have a connection that is as fast as his and to be able to consume as much data as him. It is just not normal to them.
So in effect we are dealing with a way of thinking and not economics here.
Cost Conscious
Senior Member
Come October time, if Cell C has not withdrawn the bulk-buy option, I will be renewing my wedding vows with them (for another year) and Vodacom/MTN/8ta/Telkom will all be left crying at the "Church of Greed".
Cell C is finally delivering (for me) a very fast (ca. 9mbs DL) internet connection that completely negates the need for a Telkom ADSL line.
Cell C is finally delivering (for me) a very fast (ca. 9mbs DL) internet connection that completely negates the need for a Telkom ADSL line.
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Plaasjapie
Well-Known Member
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How much have you got?
Don't answer my question with another question.
Put your balls on the line (your personal ones, and not vodacom's
) and state how strongly you feel about the price for mobile data to stay in the band of R300/GB.Then anyone can decide if they want to take you on. Otherwise your words are just marketing flutter.
Ps. I've got enough to make you pause ...
Bobbin
Honorary Master
Give that man a Bells!
I would love to know their direct response to something like this.