MTN slashed its broadband costs

MTN now have 20c per meg. And to the unbundled user its R2.00

Thats a huge mark-up, 900% if my calculations are correct.

So the majority of data users are getting ripped (nothing new) , how can MTN justify such a huge mark-up?

How can Vodacom justify such a huge mark-up? Virgin have given us 50c meg with users that you can count on one hand. Meanwhile we continued to get ripped these Voda, MTN and that freekin Meerkat.

I wish i could sell my products at a 900%+ markup.
 
Boodles said:
MTN now have 20c per meg. And to the unbundled user its R2.00

Thats a huge mark-up, 900% if my calculations are correct.

So the majority of data users are getting ripped (nothing new) , how can MTN justify such a huge mark-up?

How can Vodacom justify such a huge mark-up? Virgin have given us 50c meg with users that you can count on one hand. Meanwhile we continued to get ripped these Voda, MTN and that freekin Meerkat.

I wish i could sell my products at a 900%+ markup.
Click to expand...

It's called business.
 
Excellent.

Good to see somebody's grown a big pair then...

My next contract shall definitely be an MTN contract when I decide to renew it. Are you listening, Vodacom?
 
vodacom3g said:
Do you assume the mobile network should come for free? :)

Building and operating a mobile radio networks is substantially more complex, and much, much more expensive than a copper-based, terrestrial one.

Assuming your numbers, you are indicating that the mobile operator must give more than 25% of his topline income just for the international component. This leave 75% to build, maintain and operate the radio & local transmission network and relevant systems and services.
Click to expand...
If that were the case then we'd have another fixed line network in place by now. We do, however, have three mobile networks in place - I wonder why?
 
I see it like this.

The low end users subsidize the high end users.
So you can't really say the markup is 900%

Well R 2.00 per MB was approved by ICASA so I doubt that will change.
very soon. ;)
 
BobbyMac said:
If that were the case then we'd have another fixed line network in place by now. We do, however, have three mobile networks in place - I wonder why?
Click to expand...
Yeah afterall fixed line licenses are freely handed out by ICASA

/sarcasm
:p
 
Paul_S said:
No I don't expect it for free - I'm just highlighting the fact that MTN are making a nearly 300% markup.
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Just to reitterate v3g's point - markup is the difference between the cost and the selling price of a product.

Now the cost of international connectivity from Telskum is only one component in the cost of getting data to your phone or data card. Even if you ignore support infrastructure like the retail channels and call centres - there are still huge costs in maintaining just a core network. Once Telskum lands the data in SA - the cell networks then need to pay to get that data into their core networks via diginet and the like. They then have to pay again to get it distributed out to their base stations. They have rentals to pay on highsites and technicians... and I could go on....
Paul_S said:
I thought it was cheaper. Why is it more expensive when :
.............
I thought the whole point of wireless network was that it was much cheaper to connect and expand than a wired network.
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You are probably thinking of numerous comments by the likes of Neotel that have been either missquoted or misunderstood...
Wireless is definitely quicker to roll out and cheaper - but only in the short term. The initial rollout of a wireless network can take place in a matter of weeks and months but to provide the kind of coverage and reliability of a wired network takes much longer, a lot more expensive infrastructure and many more techicians that need to have a much higher level of skill and training.

Additionally the ROI of a wired network is much higher in the long run. Think of the telkom line into your house... do you remember when they planted the poles for your neighbourhood? There are parts of the wired network that have been around for easily 20 years and they are still bringing Telskum revenue even though they were probably paid for many years ago.
 
im sure if u read the fine print for these new tariffs ull notice that.

1. Tier based pricing structure for instant messaging (ie. mxit, jabber, Google chat etc) @ R25/mb

2. Tier based pricing structure for P2P (ie. torrents, gnutella, etc.) @ R25/mb

3. Tier based pricing structure for VOIP (ie. Skype, etc.) @ R25/pm

Can someone confirm these, i dont know if they still hold since i saw the price adjustments
 
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Paul_S said:
I thought it was cheaper. Why is it more expensive...
Click to expand...

I would stand to be corrected here, but when 3G came out, the company i work for got the contract to upgrade most of the vodacom antennae in the Cape Town area. (Those which were unreachable by a ladder or anything else) During this time, while working with the vodacom techies, i asked out of interest what the price of an antennae cost, he reckoned close to R30 000 each. Thats excluding all the extras you have to use. At the same time we were installing the new antennae, they were upgrading the equiptment in the "block house". One piece of equiptment which they lifted into place was priced around R1 mil.

Now you say is it cheaper? Not really but the thing about wireless is that it is virtually maintenance free which is why it is the preffered option but dont get confused about wireless installations and cellular installations, one is alot more complex than the other.


Boodles said:
MTN now have 20c per meg. And to the unbundled user its R2.00
Click to expand...

Well then the unbundled user should get bundles then if its such a problem. But genreally those who are the unbundled user dont exactly do alot of surfing which is why i assume its so expensive.

Lets just all look on the bright side of things, a change has been made.
 
2GB fo R400 for a truly mobile solution is a great offer at least in comparison to the previous prices. Its even looking like a viable alternative to Telkom and adsl which when al added up is close to R550 for 3GB.
Not only will this shake up the mobile prices I think there may even be some effect on Telkoms pricing.
 
Paul_S said:
No I don't expect it for free - I'm just highlighting the fact that MTN are making a nearly 300% markup.



I thought it was cheaper. Why is it more expensive when :
1. You don't have to dig trenches through all the suburbs to lay copper.
2. You don't have to build exchanges in every suburb or stick DSLAM boxes on every second block.
3. You have nearly no copper theft problems to worry about.
4. No maintenance costs of millions of pieces of copper scattered around the country side that get struck by lightning, eaten by rats, broken by wind and shorted out with rain.

I thought the whole point of wireless network was that it was much cheaper to connect and expand than a wired network.
Click to expand...

my friend.......from what I heard is that cellphone network is only wireless between your phone and the closest tower, and from tower it is wired again.....(maybe in some remote areas it's microwave or something).......So I think there is still wired network to maintain. Please correct me if I am wrong.
 
cyberarmy said:
my friend.......from what I heard is that cellphone network is only wireless between your phone and the closest tower, and from tower it is wired again.....(maybe in some remote areas it's microwave or something).......So I think there is still wired network to maintain. Please correct me if I am wrong.
Click to expand...
You're not wrong. And who do they have to pay for the wired link? If you mention the big T, he'll tell you that he's tired of people blaming Telkom. I still maintain that our mobile data rates are reasonably affordable compared to the rest of the world, and it's a little silly to see it as a competitor to fixed line. This unique case only applies to SA where it's (incorrectly) seen as a competitor. Also if I'm not mistaken, base stations cost more to install than an exchange.
 
Gladiator said:
im sure if u read the fine print for these new tariffs ull notice that.

1. Tier based pricing structure for instant messaging (ie. mxit, jabber, Google chat etc) @ R25/mb

2. Tier based pricing structure for P2P (ie. torrents, gnutella, etc.) @ R25/mb

3. Tier based pricing structure for VOIP (ie. Skype, etc.) @ R25/pm

Can someone confirm these, i dont know if they still hold since i saw the price adjustments
Click to expand...

Is this just for the 2GB promotion or across the board? And has it been approved by ICASA?
 
acidrain said:
dont get confused about wireless installations and cellular installations
Click to expand...
I think thats a good point.

It is my belief that because the GSM/3G industry evloved in an an evironment where it was the norm to cross subsidise data investment with massive voice revenues, equipment/technology price points have been artificially inflated by vendors in then knowledge that cellular operators could easily stomach them on the back of lucrative voice profits.

Other wireless technologies e.g. WiMAX have had to be economically viable & attractive 'on their own to feet' without being intertwined with other revenue streams. Together with the sheer number of vendors potentially playing in this space means that cost equipment/technology will be far more competivite than that in the GSM/3G industry. The technical simplicity of IP only in WiMAX is probably also a factor contributing to the the lower cost of technology in comparison to GSM/3G's mixed TDM/IP requirements.

So yes I would say one has to qualify which wireless technology one compares to fixed line in TCO comparisons.
 
Highflyer_GP said:
You're not wrong. And who do they have to pay for the wired link? If you mention the big T, he'll tell you that he's tired of people blaming Telkom.
Click to expand...
Make no mistake, the price payed by cellular operators for fixed backhaul links handsomely beats the best wholesale rate avaliable to the rest of the industry (e.g. ISPs).
 
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