Mobile tariffs may increase

It is true that telephony costs have dropped if inflation is taken into account.

But, the value of salaries and wages have been eroded by interest increases, fuel price hikes and fast running food prices.

The consumer won't be happy to accept higher telephony costs. Telephone usage in many respects is a discretionary cost, and usage is already competing with keeping the family fed.
 
We get the msg, the CEO needs a car and a bonus, who cares about the suckers using the service...

Vodacom / Telkom got fat on the back of consumers during the good times, isn't it time to give something back to those who supported you for so long?
 
Yeah, they have to raise prices to keep on making 5 billion instead of, lo and behold, suffering a reduced profit of only 4 billion...
 
This is like the bread scam...the prices are already artificially inflated. And now times are tougher, now they want to raise the prices again. That's bull!
 
rpm said:
Mobile tariffs may increase
Click to expand...

In the telecoms game, the cost of bandwidth and switching equipment eclipse everything else by orders of magnitude, with the possible exception of salaries. Generally, the next biggest cost is in staffing, where there have been real cost increases. On the other hand, cost inputs for bandwidth and switching equipment have dropped phenomenally since Vodacom and MTN went into business.
Despite increases in salaries, these should have been offset by economies of scale and higher productivity.
The mobile networks have not given any conclusive proof as to why they should increase their prices. If anything, there should be price decreases, not increases.
The kinds gross profit margins that are talked about for mobile operators are in the order of 60%, compared to under 10% for many IT systems integrators! Mobile operators will go on about things like marketing costs requiring high gross margins, on the other hand, they don't need to advertise nearly as much as they do - people would still buy their products.
 
ajax said:
Yeah, they have to raise prices to keep on making 5 billion instead of, lo and behold, suffering a reduced profit of only 4 billion...
Click to expand...

That "little" drop in revenue hits any company very hard, shareholders complain, corporates and employees complain.
The pursuit of profits, if they need to raise it, they will raise it.
 
well, the can kiss my contract good bye. back to 10 years ago for me when we had no cell phones. We did fine then and we can survive now. Burn in hell Vodacom.
 
wait a sec, i thought they made several BILLIONS in profit in the last year. How are they under pressure. I love it how it took 5 years to come down but a few seconds to back up to where it was.
 
I dont want to defend them but the interest rates do take a toll on all sectors in the economy. So does electricity issues. Then buying of phones with the current exchange rate doesnt help either. Phone prices go up, tarrifs might increase to.

I doubt all the tariffs will increase, Weekender packages might remain on R135. Bussiness packages could increase. Data............. hmmmm I dunno.
 
I doubt they'd increase data prices, that market's too competitive IMO, especially with Neotel entering. Their costs are also likely to start declining there too.
 
They can increase this : .!..

Personally, I think this is a bad move. Ppl are already struggling, yet the providers are making huge profits.

I would understand it if they're running into the red on a regular basis, but they're in the black all the way, so surely they can take the incentive and decrease their tariffs?

Agreed with Dominic on this one. Utter bullc**p.

:mad:
 
Last edited:
You must log in or register to reply here.
Back
Top
Sign up to the MyBroadband newsletter
X