'Mobile data prices will fall further'

[Prometheus]

Why the hell did ICASA give them permission to lay their own fibre networks.

Why? So they could self-provide and slash their costs dramatically. Havent you noticed the massive across the board savings?

I guess I was sleeping that day. Go figure.

 

[The_Unbeliever]

Good for Vodacom... at least somebody's got some balls to start a price war...

 

[BandwidthAddict]

Trying to answer the question: Why not lower prices so that more people will subscribe and then they can make so much more money (sic)?

I recently read that with the information age, the terms underdeveloped, developing and developed are being supplanted with smart, smarter and smartest (or since socialism has a toehold on the average psyche: retarded, stupid and barely functional) . You see, the information age is about knowledge and implementation. Say what you want about capitalism, but if you want to get laid, you watch what you eat, hit the gym and network. There is no "fair" when it comes to sex and there is no "quota" for the "disadvantaged". You either work to get some, or you self-satisfy. For economies, the equivalent is knowledge investment (non-propoganda based schooling, research and lots of geeks) and invention (business practices, products etc). This leads to commerce and fiscal health; kinda like what happens to blood during intercourse - it flows.

So what does this have to do with the question? My opinion is that we do not have the market. Money talks. If the market was there, Telkom would be tripping over themselves to exploit it but the vast majority of South Africans do not have disposable cash lying around and that situation will not change for the foreseeable future. So what would you do, expend huge amounts of effort to "service" these poor bastards or rape the ones that can "afford" it? Since Telkom is owned by the government, the lazy, stupid (non-innovative), rule, and thus the situation. Same for most areas of our economy except that the government do not own all but it certainly likes to fiddle and dip the finger every so often. Only a mostly deregulated environment will enable some random genius a means to include the "masses" in the economy. Such is by no means guaranteed, but I can bet you millions of rands that the current, regulated environment offers NO chance. Septa quem orbis.

Peace.

 

[Gooku]

Bravo ........
We have a better chance of finding affordability in wireless technology than fixed line legacies......

 

[Prometheus]

So what does this have to do with the question? My opinion is that we do not have the market. Money talks. If the market was there, Telkom would be tripping over themselves to exploit it but the vast majority of South Africans do not have disposable cash lying around and that situation will not change for the foreseeable future.

I disagree. From everything I have heard so far we do have the market. The problem is that most people can't afford it because it is too expensive, not the other way around. Telkom might want the rest of the world to think that there is only a small market for ADSL, but in reality, if they were to drop the prices then everyone with a fixed line would be able to afford ADSL and a lot of people would get a fixed line to get access. If they charged the same price in the UK then it would be the same there, the so called small market excuse.

The fact is that no one in this country seem to know the basic principles of economics. If you charge too much for something then no one would be able to afford it, but if you lower your prices then your market suddenly becomes bigger and you can make more money out of it in the long run if you are willing to do the investing now. The problem we have in this country is greed. All these companies like Telkom, Vodacom, MTN, Cell-C, I-Burst and Sentech want to extort loads of profit first from a few people before they start implementing the infrastructure. This takes a long time with such high prices which means that it will take a very long time to recover those costs before prices finally start dropping.

When two way satellite internet first appeared in the rest of the world everyone provided unlimited access for about R299 because if they didn't then everyone would have opted for ADSL instead. Their actual expenses were more than R299 per subscriber so a number of companies fell flat on their faces with only the surviving ones raising their prices. Now almost no one wants satellite because ADSL is cheaper. Why don't we have these kinds of companies here. Why don't we have innovative people who look at the business opportunities first and the margins second.

South Africa really sucks. We have so much potential, but because we are constantly being portrayed as "third world" to the rest of the world everyone seem to fall into the "second grade" mindset, thereby killing any potential that is left. The longer this continues the longer we will sit in the slum.

 

[Skip]

When Telkom dropped prices before ADSL uptake increased, why shouldn't uptake increase even more if prices drop again?

 

[JohnnyG]

...no one in this country seem to know the basic principles of economics. If you charge too much for something then no one would be able to afford it, but if you lower your prices then your market suddenly becomes bigger and you can make more money out of it in the long run if you are willing to do the investing now. The problem we have in this country is greed!

Yes, bravo!

Also, consider that most of these "home users", just use the internet for email, and a bit of browsing. Thats it! So there is a big hole in the market for a 200mb per month plan, for around R100 per month (total).


At this moment, the options for a 200mb per month (average) user are:

1. Dial-up. With R7 plan (thingie )
cost: R75 + R50 + R100 (for calls) = R225
Data used: 200mb
use: email, some browsing. (no downloading big files)


2. GPRS using phone + Bluetooth / cable. -no bundle
cost: 200mb x R2 per mb = R400 (if out of bundles)
data used 200mb
use: email, some browsing. (no downloading big files)


3. GPRS using phone + Bluetooth / cable. with 1gb bundle
cost: R499 (get 1gb)
data used: 200mb
WASTED UNUSED DATA: 800mb !!!
use: email, some browsing. (no downloading big files)


4. ADSL
cost R75 + R190 + R100 = R265 (get upto 1gb)
data used: 200mb
WASTED UNUSED DATA: 800mb !!!
use: email, some browsing. (no downloading big files)



So... where is the sense in that? The BIGGEST market in SA is the small home user, who just wants to check his mail, and browse a little. 200mb per month. Nothing more!


Sollution:
Vodacom (or someone) come out with a plan for R100 per month for 200mb. Out of bundle is R2 per 1mb still. Hell, even R150 per month is worth it!

 

[The_Unbeliever]

...as long as you don't go over 200Mb... then it'll be expensive.

I'd rather go for iBurst as they also have an 200Mb plan, and you won't incur hefty fees should you go over your cap limit.

And yet... telkom still is dragging the rest of us down to their level... *sigh*

 

[ajax]

Been on holiday? http://www.mybroadband.co.za/vb/showthread.php?t=42490 T-mobile UK - £8.50 uncapped.

While I couldn't find this exact offer on their site, I found some other T&C's that seem quite restrictive:
"T-Mobile defines fair use as total UK data use (both sent and received) of up to 2GB per month. T-Mobile may contact customers who exceed this volume of data in two (or more) consecutive months in any six month period to ask them to reduce their usage. If usage is not reduced, notice may be given, after which network protection controls may be applied which will result in a reduced speed of transmission. Use of Voice over Internet Protocol and Messaging over Internet Protocol is prohibited by T-Mobile. If use of either or both of these services is detected T-Mobile may terminate all contracts with the customer and disconnect any SIM cards and/or web ‘n’ walk cards from the T-Mobile network."

On another page I see:
"To ensure a high quality of service for all our customers, they are not to be used for other activities such as (but not limited to): modem access for computers, internet based video/audio streaming services, peer to peer file sharing, internet based video download and internet based telephony. If such use is detected, notice may be given, after which network protection controls may be applied which will result in a reduced speed of transmission."

Not so "uncapped" it seems

 

[JohnnyG]

...as long as you don't go over 200Mb... then it'll be expensive.

Yes, true, but like I say, thousands of ppl just check their emails, adn thats all. Besides, they are on dial-up now (most of them), and if they leave their connection on all day, it will also be expensive.

Please! obviously if you do something u not sposed to, you must PAY !

I'd rather go for iBurst as they also have an 200Mb plan, and you won't incur hefty fees should you go over your cap limit.

Please understand, that is NOT a viable option for anywhere in the country other than GP / CT and Durban. The rest of us can't get signal.

 

[JimM]

Tesco (a supermarket chain in the UK) have been offering 512Mb with a 3Gb cap for 12 GBP per month (circa R130) but they are now offering all 512Mb customers 1024Mb upgrade for free. (www.tesco.net)

In general 1024Mb seems to be the defacto 'minimum entry speed' in the UK. In fact a friend of mine has 8Gb speed uncapped for 29 GBP (circa R320) per month. Now that's what I call value.

I don't have ADSL here, its not available! A new wireless service is available but the prices are just as pathetic as Telkon (the n is intentional) so I choose to use Vodacom 3G which at R2 per 1Mb on a monthly basis seems a lot more cost effective!

 

[JohnnyG]

..I don't have ADSL here, its not available! ...so I choose to use Vodacom 3G which at R2 per 1Mb on a monthly basis seems a lot more cost effective!

Same here! I currently use about 200mb to 300mb over my phone on, wait for it... GPRS ! Serrious!

But, my 200mb costs me R400 per month !

That said, is the cheepest available internet connection option I have. (no 3G or ADSL in my area)

Besides, like I said, if I only "need" 200mb per month, getting ADSL or 3G at R500 per month is just a waste. Yes, I can get 1gb of data 'free', but I dont need it. All I 'need' is 200mb per month!

 

[JohnnyG]

..my 200mb costs me R400 per month !

Oh! So, this new price of R399 per month for 3G is great for me. I will most likely take that, but... I still dont have 3G in my area... so it will be at gprs speeds !!

Vodacom !! When you gonna upgrade my tower?
The tower name is Umtentweni-3 ! ...