MTN pushes Edge

[ShaunSA]

http://www.itweb.co.za/sections/telecoms/2007/0706281044.asp?S=Cellular&A=CEL&O=FPTOP

 

[Skeptik]

MTN pushes Edge
BY DAMARIA SENNE AND CHRISTELLE DU TOIT

[ Johannesburg, 28 June 2007 ] - MTN plans to increase the promotion of its second-generation broadband (Edge) services, arguing the infrastructure is already in place to enable this move.

However, market commentators argue the mobile operator is probably focusing on Edge because of the low consumer uptake of its 3G/HSDPA offering.

Speaking in Johannesburg yesterday, MTN SA MD Tim Lowry said the company would use its existing infrastructure to offer Edge services.

Lowry said MTN has more than 2.5 million Edge-enabled devices in the market. Additionally, the entire MTN network is already Edge-enabled, allowing the company to provide Internet services outside the major metro areas, he said.

MTN has 47 876 3G data cards and modems and 57 112 HSDPA data cards in the market. It does not distinguish between cards used for handsets and PCs. By comparison, Vodacom says it has 139 000 broadband subscribers.

Offering Edge services in addition to high-speed broadband is also in line with practices by international operators, Lowry said.

MyADSL founder Rudolph Muller and World Wide Worx MD Arthur Goldstuck argue MTN is pushing Edge because of its low 3G/HSDPA uptake.

“I don't want to be cynical about MTN's Edge strategy, but the fact that they don't want to mention broadband numbers specifically raises the question of whether they are ashamed of them,” Muller says. He is referring to the fact that MTN's figure does not differentiate between broadband users and other types of data users.

Muller also argues there will be limited demand for Edge services, as Vodacom offers 3G/HSDPA coverage in all major towns throughout SA, at lower prices than other providers.

“So what portion of the population that is interested in Internet and can afford it will not be covered by Vodacom's HSDPA network? I'm willing to argue it's not such a large population,” he says.

Goldstuck says MTN's Edge product offering would have to be price-sensitive to succeed. The current ad hoc cost for data is R2 per megabyte. This needs to go down to 20c per megabyte to see real uptake, he says. “Edge can succeed – if the price is right.”

He believes MTN's 3G/HSDPA product is far superior to Vodacom's, “largely because it is not as heavily utilised”.

Vodacom has a massive user base, as it has been successful in marketing 3G/HSDPA, he says. This has unfortunately been degrading the network experience, he adds.

Goldstuck says while MTN's “under-whelming” uptake of 3G/HSDPA is a negative for the company, it is good news for consumers. It makes sense for MTN to push Edge technology rather than 3G/HSDPA, as it requires significant investment in infrastructure, while Edge simply requires a software upgrade.

Also, Edge can be used across the entire network, so it gives MTN an opportunity to match Vodacom in terms of coverage, he says.

...

 

[Skeptik]

He believes MTN's 3G/HSDPA product is far superior to Vodacom's, “largely because it is not as heavily utilised”.

I knew it - but I don't think that is the reason.

MTN has 47 876 3G data cards and modems and 57 112 HSDPA data cards in the market. It does not distinguish between cards used for handsets and PCs. By comparison, Vodacom says it has 139 000 broadband subscribers.

47,876 + 57,112 = 104,988
That's not far off Vodacom's 139000 (which seems far too rounded off a figure to be accurate anyway).

 

[diabolus]

Goldstuck says MTN's Edge product offering would have to be price-sensitive to succeed. The current ad hoc cost for data is R2 per megabyte. This needs to go down to 20c per megabyte to see real uptake, he says. “Edge can succeed – if the price is right.

And that is the point of it all. 20c p/MB won't cut it though UNLESS it's the "out-of-bundle" rate . Vodacom offer HSDPA for less than 20c p/MB already, so merely matching Vodacom's offer with slower tech isn't going to make a diff... EDGE is however sufficient for me mostly, and i would look at a CHEAPER offering [emphasis on CHEAPER] . So far MTN is loosing that war on all fronts though.

MTN is currently fumbling around with a confusing/lazy/uncommiting system of "indefinite and uncertain" promos. If they don't want to commit to a pricing system for 2 years, why should the customer?


EDIT: Also take into consideration "bad performing HSDPA" on Vodacom generally still beats EDGE !!!

 

[Pitbull]

And that is the point of it all. 20c p/MB won't cut it though UNLESS it's the "out-of-bundle" rate . Vodacom offer HSDPA for less than 20c p/MB already, so merely matching Vodacom's offer with slower tech isn't going to make a diff... EDGE is however sufficient for me mostly, and i would look at a CHEAPER offering [emphasis on CHEAPER] . So far MTN is loosing that war on all fronts though.

MTN is currently fumbling around with a confusing/lazy/uncommiting system of "indefinite and uncertain" promos. If they don't want to commit to a pricing system for 2 years, why should the customer?

Let me ask you this.

If you had a choice of buying a 1GB bundle with R 0.20 per MB inbundle rate
or just pay R 0.20 per MB which would you choose.

Also note that Edge is for the not so heavy users.

I personally would choose the second option. Insetad of being billed R 1.00 + out of bundle after my 1GB allocation.

Like metioned by someone before. Maybe stop complaining about the price and look at the bigger picture. Wireless internet is Mother expensive in the UK and the states.

France charges 6.00 euro per 1MB. Charged in increments of 10KB. Think about is for a sec.

 

[diabolus]

If you had a choice of buying a 1GB bundle with R 0.20 per MB inbundle rate
or just pay R 0.20 per MB which would you choose.

I'd go for the 20c out-of-bundle option.

Also don't confuse "complaining" with "constructive criticism". I was very happy with MTN when they made the initial move, i just think they dropped the ball when Vodacom responded in kind. I am now on Vodacom with very little hassles, so when i'm making pointing remarks about MTN i'm basically saying

"just do it and do it properly already, stop mumbling about the awesomeness of your network and how cool EDGE is and how much people in France are paying ... " I will gladly support MTN , i just hate it when companies look like confused cangaroos when the customer is adapting faster than them.


EDIT: As for overseas wireless prices, not a fair comparison. If we had R200 a month unlimited ADSL, i wouldn't have bothered with 3G . Instead 3G would be merely a "sit on the airport with nothing to do and read emails while waiting at a client" kind of thing. [in other words minimal usage]. I won't be surprised if that's what's happening overseas too, wireless being somewhat of a "niche" and not the norm .

 

[Skeptik]

Maybe stop complaining about the price and look at the bigger picture. Wireless internet is Mother expensive in the UK and the states.

France charges 6.00 euro per 1MB. Charged in increments of 10KB. Think about is for a sec.

What France is doing is not relevant. They have much cheaper fixed line prices for data. In this rip-off-SA crazy country, we are forced to go wireless for that reason. That is where the competition is (and where it is allowed). Besides, wireless speeds here are rediculously slow in comparison to what they should be.

 

[cyberarmy]

I wish vodacom will also push EDGE....

 

[Skeptik]

They need to sort out their speeds first. EDGE would probably be what GPRS should have been in the first place.