New Cell C iPhone contract - why no love for Android?

[Vulk]

In the past, I have criticised Cell C's "straight up" contracts on this forum. Eg:

http://mybroadband.co.za/vb/showthr...ntracts-quot?p=8391701&viewfull=1#post8391701
http://mybroadband.co.za/vb/showthr...or-Galaxy-S3?p=8447419&viewfull=1#post8447419

To sum up, my basic argument is that they give you too much voice & sms, too little data, and too little subsidy towards a new a phone. They are therefore not good value for money for smartphone users, because smartphones are data-centric rather than voice-centric.

Apparently Cell C agrees with me! Because, well, check out their new iPhone contract:

- iPhone 4 8gb
- 50 SMSs pm
- 50 minutes pm
- 350mb data pm!
- R279 pm (you can also trade up to the 4S for R329 if you prefer)

A couple of points here.

First, thank goodness Cell C is abandoning their rigid formula of minutes = sms = data. This was always a stupid formula, designed for slogans rather than actual usage.

But second, why is this deal is exclusive to iPhone owners? What is stopping them from offering the exact same deal with, say, a Galaxy instead of an iPhone? I thought that Cell C is supposed to be the network that hearts Android, so why are they leaving us out?

Look at their comparable deal: the Galaxy SII on Straight Up 50:

- Samsung Galaxy S2
- 50 SMSs pm
- 50 minutes pm
- 50 data pm
- R249

What the hell, Cell C? Do Android users not need data too?

 

[iAmThePope]

Lets start a war. Its coz Cell C knows iPhone is x500000000000 better than Android.
War on

 

[Chevron]

You can add as much data as you need with Cellc.

 

[Vulk]

Lets start a war. Its coz Cell C knows iPhone is x500000000000 better than Android.
War on

I'm not interested in having that war, or debating the merits of Android vs iOS as platforms. The fact is, they're both good products, with some fairly minor (in the greater scheme of things) differences that cause people to prefer one or the other. Nevertheless:

1. They are both data-centric devices
2. They both cost about the same (I assume) for the networks to buy

Why then do iPhone users get 350mb, and Android users get 50mb?

You can add as much data as you need with Cellc.

Yeah, but surely you have to pay to add additional data to your contract? Where as iPhone users get it for free.

 

[ZAFluffyBunny]

I suspect it is because the iPhone is extremely desirable and traditionally it was only available on very expensive contracts. This is a good way to attract business.

For some reason Android is just not that popular in SA. Most people in my office who upgraded in the last 12 months opted for BlackBerry and Symbian and they laugh at me for going the Android route... Go figure

 

[iAmThePope]

I'm not interested in having that war, or debating the merits of Android vs iOS as platforms. The fact is, they're both good products, with some fairly minor (in the greater scheme of things) differences that cause people to prefer one or the other. Nevertheless:

1. They are both data-centric devices
2. They both cost about the same (I assume) for the networks to buy

Why then do iPhone users get 350mb, and Android users get 50mb?



Yeah, but you have to pay to add additional data to your contract? Where as iPhone users get it for free.

Ahhh man why did you have to come and talk sense? Have you seen how these people go at each other anyway I'm sorry I'm bored

 

[Vulk]

I suspect it is because the iPhone is extremely desirable and traditionally it was only available on very expensive contracts. This is a good way to attract business.

For some reason Android is just not that popular in SA. Most people in my office who upgraded in the last 12 months opted for BlackBerry and Symbian and they laugh at me for going the Android route... Go figure

To a large extent, this makes sense. (Also, the capacity for self-delusion in BB and Symbian fans knows no bounds.) That said, a couple of counter-points:

1. Android is the fastest-growing smartphone platform on Vodacom, by a ridiculously huge margin. Admittedly it's growing from a small baseline, so in real terms its market penetration is nowhere near Blackberry, but still worth considering.

2. "Android" might not be a popular or recognised brand in SA (the majority of South Africans have no idea what "Android" even is), but that doesn't mean they're not buying it. In general, South Africans just think that buying an Android means you're buying a "Galaxy". When people ask me type of phone my Nexus is, I just tell them it's a Galaxy (which is technically true) and they generally understand and are impressed. Their reaction suggests that this is a known and desirable brand.

3. Even if the iPhone is more desirable, there are at least a some people who would prefer to have a Galaxy. By blatantly shortchanging them, Cell C is effectively encouraging those customers to go to other networks, eg. Vodacom where they can at least get 250mb of data per month, which is much better than the lame 50mb offered by Cell C. It is not in Cell C's interest to chase these customers away.

 

[Vulk]

Sorry, another point I wanted to add:

Does anyone else get the feeling that Cell C is deliberately trying to kill RBM?

In terms of pricing and the amount of data you get, the RBM contracts are still ridiculously competitive. In fact, so competitive that they put Cell C's own "straight up" contracts to shame. The only problem with RBM is that their small selection of obsolete phones. When RBM 200 was first introduced, phones like the Motorola Defy were just one level below the cutting edge. Now they're like, four or five levels below. The more times goes by, the more obsolete they become, and the less competitive RBM is. Yet for some reason, Cell C seems to have no interest in updating their selection of phones.

I suspect that Cell C intends to keep this contract going only until Motorola and LG have sold off their entire stock of Defys and Optimus Blacks, then shut down the RBM contracts, and push new customers towards the "straight up" contracts instead.

In my view, this is the complete opposite of what they should be doing, which is to sell all their smartphone contracts on the same terms as RBM, but allow customers to pay in extra if they want a better phone. If they did this, they would have the best smartphone contracts in SA by a mile, and they would pretty much kill Vodacom. I find it very sad that they don't want to do this.

 

[ZAFluffyBunny]

To a large extent, this makes sense. (Also, the capacity for self-delusion in BB and Symbian fans knows no bounds.) That said, a couple of counter-points:

1. Android is the fastest-growing smartphone platform on Vodacom, by a ridiculously huge margin. Admittedly it's growing from a small baseline, so in real terms its market penetration is nowhere near Blackberry, but still worth considering.

2. "Android" might not be a popular or recognised brand in SA (the majority of South Africans have no idea what "Android" even is), but that doesn't mean they're not buying it. In general, South Africans just think that buying an Android means you're buying a "Galaxy". When people ask me type of phone my Nexus is, I just tell them it's a Galaxy (which is technically true) and they generally understand and are impressed. Their reaction suggests that this is a known and desirable brand.

3. Even if the iPhone is more desirable, there are at least a some people who would prefer to have a Galaxy. By blatantly shortchanging them, Cell C is effectively encouraging those customers to go to other networks, eg. Vodacom where they can at least get 250mb of data per month, which is much better than the lame 50mb offered by Cell C. It is not in Cell C's interest to chase these customers away.

Is point 1 a fact? Theoretically I have access to this information, but I suspect I would be in trouble for digging there

 

[Vulk]

Someone on MyBB calculated it by comparing the last two Vodacom press releases on smartphone distribution on their network. I can't remember which thread this was, unfortunately.

 

[MartyMarts]

Yeah, my cellC contract is up for renew and eish... I'm sadly disappointed by their Andorid phones on offer. I'm not really interested in free minutes and sms' either. I'm also in the same boat with my MTN contract...

 

[MartyMarts]

...
When people ask me type of phone my Nexus is, I just tell them it's a Galaxy (which is technically true) and they generally understand and are impressed.

 

[scuzzy]

Sorry, another point I wanted to add:

Does anyone else get the feeling that Cell C is deliberately trying to kill RBM?

In terms of pricing and the amount of data you get, the RBM contracts are still ridiculously competitive. In fact, so competitive that they put Cell C's own "straight up" contracts to shame. The only problem with RBM is that their small selection of obsolete phones. When RBM 200 was first introduced, phones like the Motorola Defy were just one level below the cutting edge. Now they're like, four or five levels below. The more times goes by, the more obsolete they become, and the less competitive RBM is. Yet for some reason, Cell C seems to have no interest in updating their selection of phones.

I suspect that Cell C intends to keep this contract going only until Motorola and LG have sold off their entire stock of Defys and Optimus Blacks, then shut down the RBM contracts, and push new customers towards the "straight up" contracts instead.

In my view, this is the complete opposite of what they should be doing, which is to sell all their smartphone contracts on the same terms as RBM, but allow customers to pay in extra if they want a better phone. If they did this, they would have the best smartphone contracts in SA by a mile, and they would pretty much kill Vodacom. I find it very sad that they don't want to do this.

+1
It's a real pity. Both my and my wife's contracts with Vodacom are now past expiry and I could just port them to Cell C, and have been meaning to - was looking forward to it. Unfortunately, their sudden divorce from Android have made me question my moving to them. Probably sticking with Vodacom since they at least offer more data as you mentioned.

Wish the Cell C rep could comment.

 

[Vulk]

Wish the Cell C rep could comment.

I'd also like to hear the Cell C rep's perspective.

 

[MartyMarts]

...maybe he ran out of data?

 

[craigfza]

...maybe he ran out of data?