Mobile broadband data prices: how low can it go?

[Fishzn]

This is the type of research I expect from MyBB. It used to be like this. MyBB used top be a consumer activism site. Now it seems to just be a site which publishes the industry press releases.

It seems like this happens with every organisation/movement that starts with change for the better in mind! Slowly they seem to lose what they're all about and become no better than the thing they're fighting against ala ANC.. MyBB ain't that bad as yet but they certainly aren't as good as they used to be!

and +100 for that addon RESEARCH to this article by TICK!! MyBB should possibly consider publishing that in another article as a response to the original article! It certainly goes a long way in putting things into perspective when these local SPs say that stuff is unsustainable! There is nothing as damning as hard facts especially those Kenyan rates!

 

[rdc]

How many decision makers reading this thread still decide to support VC/MTN/8ta's data services? The research done earlier is excellent and I will continue to support Cell C!

 

[Sodan]

How many decision makers reading this thread still decide to support VC/MTN/8ta's data services? The research done earlier is excellent and I will continue to support Cell C!

It's not that we support them, it's because Cell C doesn't cover our areas (yet).

 

[J0n0]

You mean Cell C's standard bundles, ranging between 50c to 13c/MB?

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?

Just because vodacrap con's the "uninformed" users of their data network into thinking that 500Mb data contracts is enough (then nails them with OOB and stupidly high contract rates), does not mean 500MB data bundles should be the only place where competition lies.

Browsing the VodacomDirect website, I see "Deals" that make me cringe.
You cannot defend a company that have been charging the consumers the same prices since 2007!! VC Price reduction.

You mr. or actually just jannie (I wont address you in a respectful way), are losing the respect of most, if not all the Mybb Vodacom users. It's going to take a lot more than a mere price reduction to make me do away with my Cell C sim and use Vodacrap again. You fail at providing anything valuable to keep your customers, roll on the new consumer act I say and sod your two year contracts and 4 year old data rates.

 

[pilks]

The cheaper data becomes the more income they lose. In the last few years we have shifted from SMSing people to using instant messaging on our phone. Skype in the UK can be used over the mobile data networks from your phone.

What this means is that the revenue companies were getting from phone calls and SMS are being eroded by data options that work out cheaper. This means we wont ever see an uncapped data option for a inexpensive amount. If a mobile country offered us uncapped mobile data charges at a price we would deem high of R500. R500 for a phone bill would be bliss for most of us. We could effectively kill off their other service's revenue by using data traffic for VOIP and instant messaging through BBM, whatsApp and other annoying IM applications
.
Data is eroding traditional sources of revenue for these companies. Shareholders demand earning increases year on year as they should in a capitalist society.

Morally the customer deserves the best service at the cheapest possible price but this is business and its all about the greenbacks.

*disclaimer having said this, I still want uncapped mobile for under R300 a month

 

[Electron1]

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.

Please explain

 

[jannievanzyl]

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 ...

Where did I say pricing is going to stay in the band of R300/MB??

I said all the operators are within 5 to 20%, or so, of each other and any pricing changes will be in that band. I.e. expect price drops along those percentages from the other players. And I'm quite happy to put my own money on that. I'm keen on a new SuperMotard, so shall we make it R150000?

There will always be downward pressure on pricing and it"ll come down over time. But it'll happen in small decrements. Just like Cell C undercut current pricing by 5 to 15%, so the next guy will do it to them at some point.

 

[J0n0]

I said all the operators are within 5 to 20%, or so, of each other and any pricing changes will be in that band. I.e. expect price drops along those percentages from the other players. And I'm quite happy to put my own money on that. I'm keen on a new SuperMotard, so shall we make it R150000?

There will always be downward pressure on pricing and it"ll come down over time. But it'll happen in small decrements. Just like Cell C undercut current pricing by 5 to 15%, so the next guy will do it to them at some point.

Just don't expect these things from Vodacon!

 

[pythagaros]

I hve been reading the comments on this site for some time now and have finally decided to join the chorus of discontent. As an ex mtn member I just want to say VIVA CELLC:

I could'nt help but notice how jannie(vc) was failing to comment on Tick's comparative table. Hiding something dear jannie?

 

[jannievanzyl]

I hve been reading the comments on this site for some time now and have finally decided to join the chorus of discontent. As an ex mtn member I just want to say VIVA CELLC:

I could'nt help but notice how jannie(vc) was failing to comment on Tick's comparative table. Hiding something dear jannie?

No, why would I? If those are the numbers, that's what they are.

I started going through the links, only done the first (US) one, and it's not as clearcut as the table above suggests.

For example, their pre-paid price for 1GB is $50, not $10. That's in the same bracket as SA pricing. Actually, substantially more than SA pricing.

I still need to check the other links though. Have you gone through the links in detail yet?

 

[MickeyD]

How many decision makers reading this thread still decide to support VC/MTN/8ta's data services? The research done earlier is excellent and I will continue to support Cell C!

Far more than you would think, as CellC cannot offer the same range of converged services as VC/MTN/8ta.

 

[pythagaros]

No, why would I? If those are the numbers, that's what they are.

I started going through the links, only done the first (US) one, and it's not as clearcut as the table above suggests.

For example, their pre-paid price for 1GB is $50, not $10. That's in the same bracket as SA pricing. Actually, substantially more than SA pricing.

I still need to check the other links though. Have you gone through the links in detail yet?

No but then again I am not screwing the SA consumer. U R.

________________________________________________________________________________________________________________

SARCASM WILL GET U NOWHERE

 

[zeyad 001]

it is unsustainable to keep doing unsustainble things in unsustainable ways.

 

[Antonf]

Where did I say pricing is going to stay in the band of R300/MB??

You said prices will stay the same for the "foreseeable future", didn't you?

 

[Aztech]

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.

The inanity of the rest of your post makes me suspect that the first two words are probably nonsense.

Cell C broadband is only cheap in the ridiculous South African market. Their offering wouldn't even get a second look in most comparable markets. But don't let that stop you calling it "next to nothing", it makes you sound like you know EXACTLY what you're talking about... ok, maybe not.

We're being royally screwed. And still the contempt these clowns have for the SA consumer is nothing short of breathtaking. Just how stupid do they think we are? (Obviously the answer to that is 'very'. And they must be right to some degree to get away with their blatant pillaging of the economy.)

Lazy, greedy, spineless, thieving, scumbags!

 

[Keeper]

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.

Uh, yeah, maybe for a network like vodacom with their old towers

CellC has invested quite a few "bucks" in their new network mate, and is still doing so.


This is the difference, CellC KEEP investing and expanding, vodacom have been sleeping.

It's just wireless signals people, your bluetooth does it, Radio and TV Signals are all over the place, and WUG too... it's not magic.

Trust me they make a lot of money from selling "Signals"

 

[MickeyD]

Uh, yeah, maybe for a network like vodacom with their old towers

CellC has invested quite a few "bucks" in their new network mate, and is still doing so.


This is the difference, CellC KEEP investing and expanding, vodacom have been sleeping.

It's just wireless signals people, your bluetooth does it, Radio and TV Signals are all over the place, and WUG too... it's not magic.

Trust me they make a lot of money from selling "Signals"

Not to take any sides (I have not vested interest) but both Vodacom and MTN have a far bigger, faster and more modernised network than Cell C. The towers might be old but the equipment is not!

Cell C have a very limited coverage of their high speed network when compared to Vodacom and MTN.

However Cell C is cheaper...

 

[Keeper]

Sure, of course they do... But Vodacom has hit the barrier, and don't upgrade...they are just raking it in. CellC are investing in infrastructure, and growing much faster.


If that wasn't the case, the Vodacom would be able to sustain 3c per MB Prices like CellC currently can....
...unfortunately, Vodacom can't even get below 10c even if they tried!

Vodacom can't handle that kind of load on their network, CellC are already doing it!

so sure, they have a bigger network, at the moment.... but how long has vodacom been in the game? Look at what CellC did in JUST 5 months!

 

[MickeyD]

Sure, of course they do... But Vodacom has hit the barrier, and don't upgrade...they are just raking it in. CellC are investing in infrastructure, and growing much faster.


If that wasn't the case, the Vodacom would be able to sustain 3c per MB Prices like CellC currently can....
...unfortunately, Vodacom can't even get below 10c even if they tried!

Vodacom can't handle that kind of load on their network, CellC are already doing it!

so sure, they have a bigger network, at the moment.... but how long has vodacom been in the game? Look at what CellC did in JUST 5 months!

Not true. Both Vodacom and MTN are still investing heavily in their networks. Not only that but they are also self-providing many of their own backhaul links to lessen their dependency on Telkom.

 

[Keeper]

Not true. Both Vodacom and MTN are still investing heavily in their networks. Not only that but they are also self-providing many of their own backhaul links to lessen their dependency on Telkom.

If they were investing heavily in their networks, why can't they even manage 10c/MB data prices? it's because their Network will crash!

Like I've said, CellC are ALREADY at 3c/MB...