MTN cuts rates for 2005/06

[rpm]

http://mybroadband.co.za/nephp/?m=show&id=857

 

[Goobie]

2.4% reduction for contract customers. What a joke!

 

[duderoo]

Yeah....why would Icasa not approve it........0.9% for PAYG......wow MTN.

 

[nGAGEd55]

if mtn really wants to some day overtake Vodacom and become more competitive, they must seriously adjust their tariffs, last time I heard they made the largest profit or at least the largest amount of revenue last year when compared to Voda or CellC, im sure they can afford larger price cuts!!!

and why do they give those that can afford the ProCall 300 type contracts the largest cut???? They'll gain much more new costomers by lowering the PAYG tariffs.

 

[Clipse]

Because ... no cellphone provider wants pay as you go users, contract users = 2years of definitive income.

 

[nGAGEd55]

Because ... no cellphone provider wants pay as you go users, contract users = 2years of definitive income.

tru tru,

but still, about 90% of their customers are on PAYG, so surely they must get the majority of their income from those poor souls, so more PAYG subscribers would mean more cash. But then again if they make their Contracts a whole lot cheaper, more PAYG customers would switch over and be traped for those two years.

But their prices in general are still way too high IMO,

at least there are two alternatives to MTN, not that they're much cheaper.

 

[mc721221]

to little - to late

 

[qdada]

I am not an accountant but I wonder if reporting has anything to do withit ?

Perhaps prepaid customer revenue is reported differently to contract customer revenue in such a way that a sudden cut in prices for contract subscribers affects the bottom line drastically different a similar cut if extended for prepaid users ?

 

[Alkine]

The thing is, the market in south africa is very mature in the mobile department. Almost every south african has a cellphone (80% I think) and most of them are on prepaid. To lower prepaid costs makes no sense because you will not gain that much new customers to make up for that loss. But sure they should be able to cut those costs allot more than what we are seeing currently.