OOB Data : Vodacom cheaper Virgin mobile ?

[Rouxenator]

Has anyone ever wondered by the biggest and most advanced mobile data network in SA, Vodacom, is unable to offer OOB data rates below 60c/MB ?
Afterall, the smallest mobile network in SA, Virgin Mobile, has been doing this for years now. Why is this ?

What hurdles are standing in Vodacoms path that Virgin Mobile already overcame ?

 

[SUPERMAN89]

Well Virgin Mobile just brand Cell C as its own. They don't have to worry about towers etc. If you think about it their only product they sell are mobile handsets and special deals.Besides that they just use the special access given to them by the Cell c network.Its like you going to Trade Center buying bulk ( already cheaper ) and selling it in the truck shop at your own special price

Other hand, Vodacom has much more clients than Virgin . So from my side only MTN and Cell c serve as any threat. ( look at Telkom )

 

[ajax]

Virgin probably just buys 1 TB of data from Cell C at 15c/MB and then sells it to us at 60c/MB

 

[vodacom3g]

What speed do you get on Virgin?

GPRS / EDGE / 3G / DPA?

 

[Rouxenator]

Virgin probably just buys 1 TB of data from Cell C at 15c/MB and then sells it to us at 60c/MB

I wonder why Vodacom does not do that as well.

What speed do you get on Virgin?

GPRS / EDGE / 3G / DPA?

They go up to 25kb/s when you download since they have EDGE. Perhaps Vodacom can have do the same ? You know, make a 2.75G-only rate that matches or beats Virgin Mobiles rate.

 

[J0n0]

What speed do you get on Virgin?

GPRS / EDGE / 3G / DPA?

I was thinking that as well. They just don't provide the service vodacom does namely speed and availability.

 

[duran777]

VSP 3G

Hi,

It's another story to put up and maintain your own towers and not to talk about fiber links.

The other Peggy bag from Telkom

Just a thought!

Enjoy a great long weekend and don't forget the meaning

 

[Rouxenator]

I was thinking that as well. They just don't provide the service vodacom does namely speed and availability.

Some people might sacrifice those for lower cost of data. Perhaps Vodacom should think about it. They'll make a killing with their 2.75 BB-R (Broadband Retarded) offering.

Hi,

It's another story to put up and maintain your own towers and not to talk about fiber links.

The other Peggy bag from Telkom

Just a thought!

Indeed - just the kind of thought Vodacom needs to think about.

 

[DapperDanMan]

Well, on some of the new Vodacom offerings (Broadband Advanced) you could pay OOB rates of under 60c/MB.

Even 24c/MB, correct?

 

[Rouxenator]

Well, on some of the new Vodacom offerings (Broadband Advanced) you could pay OOB rates of under 60c/MB.

Even 24c/MB, correct?

Virgin Mobiles normal data rate is 60c/MB - no bundles or badges or tutti-frutti bolt-ons.

 

[vodacom3g]

I wonder why Vodacom does not do that as well.

They go up to 25kb/s when you download since they have EDGE. Perhaps Vodacom can have do the same ? You know, make a 2.75G-only rate that matches or beats Virgin Mobiles rate.

I like the way you're thinking.

But please remember this thread and post. You guys come up with requests such as this and then if we actually launch a product, we get blown out of the water.

So let's say we launch a lower speed / lower price product. Then everyone is going to complain about it. Including the people who asked for it in the first place....

But to get back to your question why VC data is not the same as Virgin.

You agree the cost to run a network includes the cost of the equipment and the cost of the national and international links to interconnect them? There are many other costs but lets ignore them for simplicity's sake.

So Vodacom has MANY more towers than Virgin (who actually have none) or Cell-C. These are all latest technology HSDPA, 7.2 enabled, compared to GPRS or EDGE on Cell-C.

So you'll agree the capital cost to put this network down is MUCH more than the Cell-C network?

Furthermore, we are aiming to have speeds on all towers exceeding 7Mb/s, but let's say on most of them today you'll be able to get speeds of up to 2.5Mb/s. This bandwidth is bought every month from Telkom who charges per Mb/s.

So you'll agree that it costs MUCH more to run the VC data network every month than the Virgin network?

So, with VC you have a network that's much bigger, giving speeds many times faster than Virgin. And as above there is near linear relationship between opex and capex and speed.

But funnily, VC data is NOT 50 or 100 times more expensive than Virgin. As a matter of fact WORST case is 3 times more (R2/MB). So you're 33 times better off with Vodacom than Virgin.

But even then, you're actually still wrong. Virgin's rate of 60c/MB is still way more expensive than the OOB rates you can get with Vodacom, as low as 21c/MB.

Even the 500MB bundle beats Virgin's rate.

So, to answer your question:

Vodacom gives you MUCH better coverage, at MUCH higher speeds, for LESS money than Virgin.

So, what was the question again?

 

[Rouxenator]

Oh what a tangled web we weave....

But let's focus on some of the differences you mentioned.

You agree the cost to run a network includes the cost of the equipment and the cost of the national and international links to interconnect them?

Yes - but somehow it seems Virgin Mobile does a better job of managing these costs if one looks at their end user prices.

So Vodacom has MANY more towers than Virgin (who actually have none) or Cell-C. These are all latest technology HSDPA, 7.2 enabled, compared to GPRS or EDGE on Cell-C.

You can have millions, but an end user will only use one and does not care about the rest or the cost of running them. For many cost is a much bigger concern than speed. So what if the towers belong to someone else, the price is right.

So you'll agree that it costs MUCH more to run the VC data network every month than the Virgin network?

Yes - so maybe you should take some pointers from them as they seem to do the same for much less.

So, with VC you have a network that's much bigger, giving speeds many times faster than Virgin. And as above there is near linear relationship between opex and capex and speed.

Erm - NO. I do not have a network - it is Vodacom that has the network. I just have the need to access the internet at a low cost. 200kbps will do.

But funnily, VC data is NOT 50 or 100 times more expensive than Virgin. As a matter of fact WORST case is 3 times more (R2/MB). So you're 33 times better off with Vodacom than Virgin.

We are not talking bundles or other hocus pocus here - we are talking normal data rates. Without making any sort of commitments to the network you find that Vodacom offers you a deal that is 4 times more expensive than Virgin Mobile.

But even then, you're actually still wrong. Virgin's rate of 60c/MB is still way more expensive than the OOB rates you can get with Vodacom, as low as 21c/MB.

Again - what part of we are not talking bundles here did you not get ?

Vodacom gives you MUCH better coverage, at MUCH higher speeds, for LESS money than Virgin.

1) Virgin has the same coverage as Vodacom.
2) The speeds they have are OK enough.
3) You need to make considerable commitments to Vodacom before they are cheaper.

So, what was the question again?

Why, out of the box, is Vodacom 4x times more expensive than Virgin Mobile if you take into account things like the size of the networks and their bargaining power ?

Glad you actually asked that to conclude with because all I got was a whole bunch of wool and no answers.

 

[wheunis]

Its a sad day when people manage to lower my opinion of humanity on the whole, especially in such large bounds as you just did Rouxenator.

Its more expensive, because its better.

A Porsche costs more than a Toyota... dont go argue that Porsche should sell their cars cheaper just coz you will never drive at it's capable speed.

 

[Rouxenator]

Its a sad day when people manage to lower my opinion of humanity on the whole, especially in such large bounds as you just did Rouxenator.

I am to please

It is a sad day when humanity stops questioning things. Especially when they are a lot less complex than is lead to believe.

 

[SUPERMAN89]

So Vodacom3g asked "What speed do you get on Virgin? "

http://mybroadband.co.za/vb/showthread.php?t=157132

I started that post when I was using the service and for most South Africans that cannot pull up a 300 bucks to buy a DB virgin offers an Internet connection that you can use facebook, cheak your e-mails on...but you can download stuff ( if you willing to wait)

I wudnt fight or back the side of any ISP for now...I had my fair share of problems like everyone theses days


but as you can see by my signature iv upgraded from edge - 3G to HSDPA GLORY!



"So let's say we launch a lower speed / lower price product. Then everyone is going to complain about it. Including the people who asked for it in the first place...."

I forsee 3G dc to edge/gprs and people saying why they still getting billed the same price lmao....Design a system in which on "mobile internet" is at a special price. Something like what you guys did with the blackberry uncapped wap.

Than that would be a whole diffent ball game ( and people wouldnt question the R2/MB because they would have a choice in which to be billed)

 

[d0b33]

I got my aunt a virgin sim years ago for the data rate and to this day she will not switch to Vodacom PPDBs she prefers the fixed rate from Virgin even if it's not 3G.

 

[morkhans]

If Virgin charged R2/m do you think anyone would bother with their EDGE network? 60c/m is the price you pay if coverage and speed is not what you are looking for.

That being said I am disappointed in how Vodacom have implemented better OOB rates. I was happy with the VAS rate for higher speeds. They could very easily have just given people who buy bundles better OOB rates without forcing you to pay more for the privilege.

 

[vodacom3g]

Virgin charges 60c/MB flat rate for GPRS/EDGE.

Again, just as a comparison, if you buy a Vodacom:

- 500MB bundle, you pay 56c/MB flat rate (or 38c/MB on BB-S)
- 1024MB bundle, you pay 38c/MB flat rate (or 28c/MB on BB-S)

- and you have 60 days in which to use it, and if you run out you still pay the same flat rate rate.

- and you get a 7200/1400 profile.

- and a device, if you're on contract.

So I still maintain that the above provides better value for money than paying 60c/MB for GPRS.

But I'm personally also for a lower cost / lower speed offering to cater for those not in 3G coverage.
. Which means, if we do do it, we will beat the Virgin pricing even more than we do already.

 

[psc]

- 500MB bundle, you pay 56c/MB flat rate (or 38c/MB on BB-S)
- 1024MB bundle, you pay 38c/MB flat rate (or 28c/MB on BB-S)

- and you have 60 days in which to use it, and if you run out you still pay the same flat rate rate.

- and you get a 7200/1400 profile.

- and a device, if you're on contract.

Surely you mean BB-A (advanced) ? as you included 7200/1400

 

[SUPERMAN89]

Virgin charges 60c/MB flat rate for GPRS/EDGE.

Again, just as a comparison, if you buy a Vodacom:

- 500MB bundle, you pay 56c/MB flat rate (or 38c/MB on BB-S)
- 1024MB bundle, you pay 38c/MB flat rate (or 28c/MB on BB-S)

- and you have 60 days in which to use it, and if you run out you still pay the same flat rate rate.

- and you get a 7200/1400 profile.

- and a device, if you're on contract.

So I still maintain that the above provides better value for money than paying 60c/MB for GPRS.

But I'm personally also for a lower cost / lower speed offering to cater for those not in 3G coverage.
. Which means, if we do do it, we will beat the Virgin pricing even more than we do already.

Marketing 101 lmao...go for it Vodacom3g lets see some change for once!