Mobile pricing hearings begin tomorrow

[Peter7]

[Johannesburg, 17 May 2006] - The Independent Communications Authority of SA (ICASA) is holding public hearings on mobile prices on 18 and 19 May.

The hearings are part of the regulator's investigation to establish whether the high costs of mobile services are justifiable and if there is a need for more rigorous regulatory oversight of mobile tariffs, ICASA says. The investigation came about as a result of a complaint by the Communications Users Association of SA (CUASA).

In their written submissions, CUASA, the Competition Commission and the South African Contact Centre Community say the high mobile prices in SA indicate there is insufficient competition in the mobile market.

“What we have in SA is the façade of competition in the form of firms contesting vigorously through advertising, marketing and distribution outlets,” the commission says.

How do you like this one from MTN? They say ICASA should only intervene if there is a potential market failure... how absurd!!

MTN says the regulator must first conduct an economic analysis to determine if there is enduring market failure before deciding to intervene.

Suggested solutions in the submissions include the awarding of a licence to a fourth mobile operator, introducing mobile virtual network operators, and a dramatic and immediate reduction of interconnect tariffs for all calls.

Scrap issuing 4th, 5th, 6th etc licences and just open the market pleeeeeaaasseeee!

http://www.itweb.co.za/sections/tel...A=MAW&S=Mobile and Wireless Technology&O=FPIN

 

[bwana]

Do your job ICASA and the nation will thank you.

 

[krycor]

they never learn..

 

[Highflyer_GP]

Vodacom adds that the high take-up rate of mobile services indicates the overall combination of service quality, coverage and price are attractive to consumers.

What utter kak! The take up rate is so high because there's no other means for people to communicate. Nobody has access to a fixed line, even if they do the rates are ridiculous. The only alternative to keep in contact with people is to go mobile. And according to who do they claim that their price is attractive to consumers? Do they have proof? Is Vodacom making false claims yet again??

 

[Skip]

I agree with Highflyer. The uptake in cell use has more to do with people not having access to fixed line communications either because Telkom has no service in the area, or because fixed line rental is not worth it (why pay R960 in line rental charges a year when you can get a cheap cell phone and starter pack for a once off cost of R600). And cell companies are always loathe to admit that 90% of their users are pre-paid users who hardly use their phones for more than SMS'ing.

 

[kaspaas]

What utter kak! The take up rate is so high because there's no other means for people to communicate. Nobody has access to a fixed line, even if they do the rates are ridiculous. The only alternative to keep in contact with people is to go mobile. And according to who do they claim that their price is attractive to consumers? Do they have proof? Is Vodacom making false claims yet again??

Basic Telkom telephone: At least R100 pm

Similar telephone access on prepaid: R10 per month??

The choice for cash strapped people is obvious - go cellphone!

Why pay Telkom a monthly fortune for receiving calls, if you can have it for almost free using a cellphone?

 

[bwana]

Declare them a major operator and axe their interconnect charges. They've got many times more subscribers than telkom.

 

[bekdik]

Basic Telkom telephone: At least R100 pm

Similar telephone access on prepaid: R10 per month??

The choice for cash strapped people is obvious - go cellphone!

Why pay Telkom a monthly fortune for receiving calls, if you can have it for almost free using a cellphone?

That's assuming that phone lines are even available!

 

[Skip]

Another thing. If cell companies were affordable their ARPU (Average Revenue Per Unit - basically the amount a customer spends a month) would remain steady or even rise, except the ARPU for Voda and MTN have been dropping.

 

[Cara]

What utter kak! The take up rate is so high because there's no other means for people to communicate. Nobody has access to a fixed line, even if they do the rates are ridiculous. The only alternative to keep in contact with people is to go mobile. And according to who do they claim that their price is attractive to consumers? Do they have proof? Is Vodacom making false claims yet again??

Highflyer ... how could you have predicted what they would argue today ?

Just returned from the Icasa hearings and the high mobile penetration rate was a big hit with the mobile providers. They all have these really fancy graphs showing us how stupid we are to be unhappy with the prices because they are clearly affordable (if you just look at the graph showing high penetration rates).

Icasa asked a few interesting questions, hope they stand firm and implement that economies of scale because SA has clearly exceeded market expectations. They (cellular providers) were working on 500 000 and now have 34 million (I think Vodacom said).

 

[Highflyer_GP]

Telkom, Vodacom, they are one and the same. Where Telkom fails, they can rest assured that Vodacom will act as a profitable backup. As for MTN they are just riding the gravy train. Penetration rates mean nothing when there is a lack of affordable alternatives. The ARPU is a more accurate measure of how many people can actually afford their service.

This goes to show that people do want technology in their lives, but by looking at the ARPU also goes to show that they can't afford to use it. What I would like to know from them is why have rates continued to increase despite the fact that they have so many millions of new subscribers? What ever happened to economies of scale? Why does a 2 minute call cost as much as a load of bread? I hope ICASA sticks to their guns for once.

 

[kilo39]

Somehow companies in this country seem to have missed out on 10 or 20 years of capitalism, ie, the competitive part. Increasing services and decreasing price. Its called 'productivity'. Instead they point at fancy graphs and how many simcards. Question - do the installed users show a healthy rate of usage: not. They are blinded by their business use profits - which the consumer pays for yet again. Any company posting billions in profit - on the backs of a 40+% unemployment rate is obviously profiteering off the few. Lower the call charges! What is wrong with these people!!! I suggest they all go back to school.

 

[icyrus]

Its pointless arguing back and forward with these companies. They will only ever be interested in profit.

Open the market to whoever wants to play and let the market teach them what is affordable.

 

[kilo39]

Or slap them with a wet fish - end of story. Pleeaaze ICASA.