Mobile broadband data prices: how low can it go?

[jannievanzyl]

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

I did?

Link, please?

 

[MickeyD]

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...

We're talking about network performance and Capital network upgrades/expansion and network coverage. Vodacom were to spend R6.8bn on its network this year (10/11).

On coverage, how widespread is Whoooosh available in SA?

 

[MickeyD]

Even 8ta spent more than Cell C on capital expansion...

http://www.iol.co.za/business/business-news/sa-s-new-capital-projects-lose-momentum-1.1039454

The telecoms sector was a major contributor to announced projects last year.

The biggest was Telkom’s R6bn mobile network rollout, followed by Cell C’s R5bn programme.

 

[MickeyD]

@Keeper: I agree that there is room for all networks to further reduce their retail pricing in all revenue streams (voice and data).

 

[Bobbin]

I have always wondered if some of these companies are in cahoots with their marketing schemes especially MTN and Vodacom.

 

[McCrazieGoalz]

Please explain

To put it simply.

This is Africa and in Africa things are difficult and people are just not used to getting good affordable goods and services. If people are to get good service and products in Africa, then it is the privilleged only who should. It is not a fact - it is a mind set that guides business strategies in South Africa. If we get poor service, we can whinge and moarn about it, but we are not alarmed by it because at least we are getting a service. After all this is Africa. This is why our problems are not properly addressed when we complain about them to those who would have provided the goods and/or services that we are not happy about.

The provision of service by South African companies does not follow the route of the positive ethos of competition. i.e. in a free market, people should get the best possible goods and services as a result of competition. This does not work in South Africa and indeed the rest of Africa where ground is broken by South African companies in terms of services offered and new technology uptake, because the approach of South African companies is an 20/80 approach.

We are so used to having inequality in this country that the culture of inequality pervades all that we do - albeit subconsciously in more cases than we realise. This manifests itself in how government is run and how people practice their business. From a B-BBEE strategy that benefits only a few in practice, to corruption leading to tax payers' monies being put in to government fat cats' pockets through fraudulent tender proceedures leading to a failure to provide basic services, to blatant fraud, to price fixing, to collusions, to failures to motivate the increased use of data (as in this case) in order to reach economies of scale through increased data use.

If SA companies do not evolve and continue to profit maximise by choosing the easier option, which is to simply charge more to the few who can afford it - they will die slow deaths because those few who can afford will become fewer and fewer and pretty soon there will be no one to charge those exhorbitant rates and prices to.

20% of South Africans buy 80% of the goods and services. With the way the pricing is continuing, I would not be surprised if this statistic has now moved to 10/90.