By the way why cant mtn setup their own im service ?
Answer is they can and so can the others, but they wont because that's commercial suicide.
The great thing about mxit is that the data charges are rock bottom ! Now that's what i call great prices
Answer:
MXIT doesn't set the data charges, MTN does (then ICASA must approve them)
MXIT is nothing more than turning SMS into a "text" with a little application on the phone, then sending it over the GPRS data channel, which creates an arbitrage situation on GSM networks. Logic dictates that it wouldn't be the case if they were charging reasonable prices for SMS from the start. When SMS became popular "they" decided on a tariff that the market would "bear" (not what is reasonable) and charged it. Now there are other means of sending that same bit of data, they are not happy. Well that's understandable, they are a listed company and the profit margins they have enjoyed for so long on SMS, are required to keep the share price steady and the shareholders happy. MXIT grows every day, as did their SMS service when that was all the rage (and while there was no other way of doing it)
If rumours are true (hopefully MTN DATA DUDE will squash it) and "instant messaging" data gets punished the same way as VOIP data, ie R25 per meg, the Networks have killed their decline in profit, through the loss of SMS traffic. Essentially the networks have grown reliant on the profits from SMS, which was a mistake in that it was "not a sustainable model" based on IM and always on GPRS.
Data revenue and new data services like TV etc are supposed to bolster the declining growth in new "Voice customers". Most GSM networks across the globe have declared this fact. You can continue to dream up new Data apps (FOR THE MOMENT) for additional revenue growth, but most are running out of ideas to increase the habits of users and Voice usage. MXIT does not help this formulae does it? Essentially what the Networks cant afford to loose, is bread and butter data, what do replace that with??
The question is why should an SMS cost any more than a Text message sent over the Data channel, essentially its the same amount of Bytes???
Another question best answered by the MTN DATA DUDE.
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Hello, Mr MTN DATA Dude, when you get a minute we could do with your help to sort out the confusion Im starting)
BTW: Im no economic expert, and only in GRADE 7, but following a recent history lesson and understanding the basics of the new constitution, giving me the right to voice my opinion, I'm just trying to get an early start in life, as irritating as it may be, for more learned and experienced folk. As young as I am, I'm mentally prepared to deal with being wrong. Please help straighten out my deranged way of thinking.
