Overcharged everywhere we go?

[rpm]

http://www.mybroadband.co.za/nephp/?m=show&id=2783

 

[duderoo]

Vodacom seem to be sponsoring everything under the sun and can give away a R1m every month. If they can afford that then I am sure they can cut come of the sponsorship and give us better prices.

 

[AntiThesis]

It really does seem excessive that we have to pay so much more in this country. I don't see what makes us so special.

I think the key to getting SA firmly on track would be good and effective regulation. Our regulation at the moment is far too ineffective and is virtually powerless as far as I've been able to see.

Plan:
1) Split Telkom into 3 competing companies
2) Establish regulatory body like the scorpions (although in SA the problem becomes Who watches the watchers?)
3) Enjoy fruits of labours.

easy ^_^

 

[biltonguy]

"Overcharged everywhere we go?" - whats with the question mark in the title?

 

[Bona Botse]

"Overcharged everywhere we go?" - whats with the question mark in the title?

its a question, and hence the q mark. its like "Got milk?"
wrt the article, i'm appalled at our cell companies. shame on u! i wonder how they're gonna explain this. probably something like "the infrastructure rolled out in SA is much more advanced than in our other countries, and hence the reason why we're charging more". bull$h1t

 

[caroper]

I hope that the author of that piece is going to present the findings at the ICASA hearings. I see it as proof of collusion, whereas in other countries they have to compete. But, I imagine that the cell companies will lay the blame at the feet of Telkom for Landline and interconnect charges.

 

[Bona Botse]

But, I imagine that the cell companies will lay the blame at the feet of Telkom for Landline and interconnect charges.

still wont explain why we're paying so much for calls made to someone on the same network. no landlines & no interconnect fees

 

[Trybble]

Could it be South Africans are charged more simply because our cellular companies think we can afford to pay more?

I think it's very likely the case. Simple market principle: push the price to the point where profits are maxed and turnover is still good. Don't push them too far or too many people will tell you to get stuffed. Very capitalist.

In a weaker economy, of course prices would be lower.

And is that a fair basis for pricing?

I bet they think so.

 

[pupa]

Well IMHO we are sponsoring the Cell operator activities in the rest of Africa, as we are sponsoring the local poor and disadvantaged at Telkom for services they do not yet get, this conveniently lands in the back-pockets of ministers and decision makers to retain monopolistic structures and guarantee exploitation of the consumers in South Africa!

 

[rooijan]

Simple market principle: push the price to the point where profits are maxed and turnover is still good. Don't push them too far or too many people will tell you to get stuffed.

The above principle does not apply to monopolies and cartels. Prices in SA are way beyond max profit. People are telling the telcos to get stuffed all the time but they still have no choice but to pay the going rate for phone calls etc.

 

[stoke]

Sigh ...
How do you create and control the united states of africa ?

You buy into the countries communication network and start using propoganda to get yourself in the populances good books and then you get yourself voted into power.

Ye who controls the propoganda controls the masses.

This is why the ANC does nothing about our problems. They like it the way it is.
We will have another USA !

 

[Peter7]

"Overcharged everywhere we go?" - whats with the question mark in the title?

That's a rhetorical question, should have exclamation at the end of it:

"Overcharged everywhere we go?!"

 

[Peter7]

The net effect is that South African subscribers face cellular prices that are higher, on average, than what subscribers pay in other countries served by our own companies.

Could it be South Africans are charged more simply because our cellular companies think we can afford to pay more? And is that a fair basis for pricing?

Exactly! The SA economy might be better off than some of the African countries so hence the reason they MILK (err...Got Milk?) us more. We should have the cheapest tariffs.

hmmm.... maybe the whole problem is interconnection fees with Telkom??

 

[kaybeach007]

Simple Accounting

All this benchmarking is rubbish! Simply take the cost of sales and add a margin of profit (10%, 20% whatever) and that is the price. All this smoke and daggers is making me crazy, don't try and compare anything to anything, all you do is add subjectivity to the pot.

Stick to the objective factual approac. How much does a unit cost to make and how much are they selling it for?

 

[LifelongGamer]

Firstly, let me clarify that I'm not in agreement with my following statement. I'm merely offering a possible explanation.

There is another way to look at this. South African consumers have for years had their rights trodden into the dirt. The result is that we don't stand up for our consumer rights and this fact is taken advantage of by corporations (and politicians if you really look deep enough) doing business within our borders.

That said, in order to gain market share in other countries, our companies use the profits made from local consumers to subsidise operations in competitive nations. That's why they could offer us cheaper services, but in order to grow, they'll rather use that same resources to expand into other emerging markets. Hence cheaper rates in other countries and the same (high) rates locally. Somebody's got to pay for expansion - pity local companies don't dig into their profit reserves but instead expect the public to keep paying for everything.

 

[kilo39]

Overcharged everywhere we go? -> Overcharged everywhere we go!!!

How come the poorest people are always stuck with the highest bills?!

 

[RoosTa]

hmmm.... maybe the whole problem is interconnection fees with Telkom??

Lets not forget the very high licence fees (R1bn/year) - "...brought to you by gavamint".

 

[kilo39]

Lets not forget the very high licence fees (R1bn/year) - "...brought to you by gavamint".

Of course - the licence fee!? So that's 1 billion for a licence, 14% GST, Income Tax + a share in the profits. This government is rolling in it -. Just wish I could see some sign of the benefits - for da people.

 

[NoFluffAllowed]

Just a small point but..

Re this:

"In SA one doesn’t need to equip base stations with their own diesel generator because of the lack of electricity outside urban areas."

I beg to differ - the electricity supply is absolutely dreadful in some rural areas of the Eastern Cape, with black outs almost every day. We urban dwellers just don't get to hear of it. So there are infract base stations that have to be kitted out with emergency generators.

 

[Tunasashimi]

Are The Powers That Be Smarter Than You?

If there is power sometimes, cheap batteries will do fine.

Anwyays, you bunch of useless comment-makers, feeble people of inaction.

Put your intellect, googling and people-skills to good use, read THIS POST, and jump to work.