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I know in the states they offer unlimited bundles for a few dollars extra per month - another thing not available here AFAIK.We are cheaper than the States? Thats nice to know
theriddler
Well-Known Member
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We are cheaper than the States? Thats nice to know
No we're not, their average salaries aren't 8 times less than ours. So you cant just use th exchange rate.
Just consider that if SMS was very cheap or even free, your phone would die in an avalanche of spam messages. (We already do!)
SMS hardware is not expensive, so this argument is invalid.
Basically, it's a service cost, a convenience cost and a way to subsidies the cellular networks' business. If SMS revenue is lost, that money will have to be made elsewhere and the consumer won't benefit in the long run.
Frankly, SMS bundles are good enough for most people and remember, by sending an SMS, you are avoiding a call, so the network is "losing out" on that call revenue. They partly recover this loss from the high profit margin on SMS.
Nothing is as cut and dry as "It costs R3000 a MB". If everything was charged based only on costs, no-one would be in business. We need to be a bit more business minded before jumping to overly simplistic conclusions.
SMS hardware is not expensive, so this argument is invalid.
Basically, it's a service cost, a convenience cost and a way to subsidies the cellular networks' business. If SMS revenue is lost, that money will have to be made elsewhere and the consumer won't benefit in the long run.
Frankly, SMS bundles are good enough for most people and remember, by sending an SMS, you are avoiding a call, so the network is "losing out" on that call revenue. They partly recover this loss from the high profit margin on SMS.
Nothing is as cut and dry as "It costs R3000 a MB". If everything was charged based only on costs, no-one would be in business. We need to be a bit more business minded before jumping to overly simplistic conclusions.
stix
Expert Member
Like almost all sectors in the teleco's arena we get screwed as "customers"
Make a voice call, instant messaging is so 'teen'
Start a Skype Video Conversation, voice calls are so "grandma"
JBFRobisher
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And royally screwed. The Cellcos give filth a bad name. I hear Satan himself goes for lessons at Vodacom.
Turiko
Banned
SMS has always been the most expensive communication medium for subscribers on a mobile network! And purely by accident, SMS has become a big money spinner for telco's globally. But if you look at MXit now with 6,2mil subs and over 200mil messages per day sent on the platform, that is serious competition to the telcos. So offer 5c SMSes to prepaid subscribers period and you will see churn happening without doubt!
The SMSC infrastructure cost and maintenance cost is a factor in pricing SMSes, But really in reality, telcos are making 99% profit on SMS messages (and especially international roaming SMSes at R1.40 I think on MTN before their new pricing structures)
The SMSC infrastructure cost and maintenance cost is a factor in pricing SMSes, But really in reality, telcos are making 99% profit on SMS messages (and especially international roaming SMSes at R1.40 I think on MTN before their new pricing structures)
rehd
Well-Known Member
hhmm as I have watched Both Vodacom & MTN develop over the years, and their price tarrifs increase in some &decrease in others, I gotta make the conclusion that their sms's are highly over priced.As well as their MB's (but its a good price @R2/mb could be less say 80c/MB) but their SMS is by far overprices. SMS uses channel 0 the command channel all htese structures were put up when voice went up, Voice had paid for these systems long ago, sms is keeping their pockets full.
SMS should have come down, I have spoken to Virgin guys about their SMS & data hehe and got blank responses, so there is a massive cover up on costs somewhere. Only way we can avoid these is to change to different technolgy, such as IM, there are a couple of programs that can run on just about any phones these days, some combine the platforms, so its is something that should be looked at if looking to bring your costs down.
My recommedation.. sms 10c each time for the fat cats to give something back to the contract subscribers seeing we paid for most of it in the beginning.
SMS should have come down, I have spoken to Virgin guys about their SMS & data hehe and got blank responses, so there is a massive cover up on costs somewhere. Only way we can avoid these is to change to different technolgy, such as IM, there are a couple of programs that can run on just about any phones these days, some combine the platforms, so its is something that should be looked at if looking to bring your costs down.
My recommedation.. sms 10c each time for the fat cats to give something back to the contract subscribers seeing we paid for most of it in the beginning.
The_Unbeliever
Honorary Master
How I wish I'd taken a picture of that billboard whilst in Mozambique...
If I remember correctly (and if I extrapolated from the Portugese correctly) it says that you get 40 free SMS'es with every recharge (on prepaid).
If I remember correctly (and if I extrapolated from the Portugese correctly) it says that you get 40 free SMS'es with every recharge (on prepaid).
Simply put, its because they know they are ripping us off, and they have no justifications for those prices. They know they are screwing the consumer over, and they do it with a big smile on their faces.
Some of my foreign friends dont even pay for text messages. Like the high prices mobile operators charge us for calls (they know this is unfair).. this is just another way for them to rip you off.
So.. business as usual for them.
fz1
Senior Member
This is a really interesting article / way to look at the cost of SMS. I have hated paying so much for SMS, but this really opens ones eyes as to the 'real' cost. In addition to the highway robbery that is R0.80/SMS, R1.75 for international SMS' (as in sent to an international destination, not sent while roaming) for Vodacom is even more unbelievable, in my opinion. If my maths is correct, that equates to ~R13108/MB.
And I thought Telkom was bad.
And I thought Telkom was bad.
Its time we started protesting in the streets, get the unions involved and do some marches on the networks head offices.
Cellular communications in South Africa is ridiculously over priced! Why in less developed countries in Africa is it cheaper on prepaid to make an international call, than it is in South Africa to make a local call, R1.50 per minute in Uganda to call back to South Africa per minute vs how much for a local call here....?
Guys we need to start getting in the networks faces, we should organise a serious protest, we should be emailing and calling the government ministers daily expressing our concern over the high costs of cellular and the high interconnect costs. We should be lodging complaints with the competition commission as well as with ICASA about the collusion in pricing on the networks. It is time that things started changing.. Carte Blanche and 3rd Degree would be a good bunch too get involved as well.
Q. why is the interconnect fees so high between the networks R1.25 per minute that accounts for 50% of our call cost alone, interconnect fees are high for one reason and one reason only to milk any new player in the market, if you go back in time you will see Cell C have been complaining since before they went live as the interconnect fees were a fraction of what they are now, but funny when they received their license the interconnect fee's went up by a factor of 4x why? Just to shaft the new player and ensure they will take double the amount of time to build their network and get stable.
It is time. The SA consumer is being raped by high costs, and communications is the key to improving the lives of millions of South Africans.
Cellular communications in South Africa is ridiculously over priced! Why in less developed countries in Africa is it cheaper on prepaid to make an international call, than it is in South Africa to make a local call, R1.50 per minute in Uganda to call back to South Africa per minute vs how much for a local call here....?
Guys we need to start getting in the networks faces, we should organise a serious protest, we should be emailing and calling the government ministers daily expressing our concern over the high costs of cellular and the high interconnect costs. We should be lodging complaints with the competition commission as well as with ICASA about the collusion in pricing on the networks. It is time that things started changing.. Carte Blanche and 3rd Degree would be a good bunch too get involved as well.
Q. why is the interconnect fees so high between the networks R1.25 per minute that accounts for 50% of our call cost alone, interconnect fees are high for one reason and one reason only to milk any new player in the market, if you go back in time you will see Cell C have been complaining since before they went live as the interconnect fees were a fraction of what they are now, but funny when they received their license the interconnect fee's went up by a factor of 4x why? Just to shaft the new player and ensure they will take double the amount of time to build their network and get stable.
It is time. The SA consumer is being raped by high costs, and communications is the key to improving the lives of millions of South Africans.
The_Pumpkin_King
Jedi Master
sends please call me, person logs on to mxit, job done!
CeeBee
Expert Member
I've been under the impression that sending a short e-mail instead of sms is cheaper, can say more for less cost too, now that most phone's have an e-mail client (even a (free) sms to tell u that "u've got mail")
however, I guess, as with sms's ... once those volumes start going up the networks will probly rip into us about that too, but if u have a data bundle (like a 10Mb just for phone based e-mails) on phone that should be OK?
however, I guess, as with sms's ... once those volumes start going up the networks will probly rip into us about that too, but if u have a data bundle (like a 10Mb just for phone based e-mails) on phone that should be OK?
smokey
Honorary Master
True, but then, in Serbia (which is far behind South Africa in terms of world prestige and economic development) people pay around 7-10 cents a minute to talk and sms cost around a cent (im talking south african cents here). the starting prices were much higher than they were here, but once the inital capital outlay was well earned ack, the prices started dropping like britney spears underpants. its all well and good to talk about sound business, but the only sound business being conducted by SA telcos is that of raping the consumer. because we dont back up our frustration by taking our money to another (better) provider and we dont complain enough.
even when we do complain (see the neotel just opened thread) it is pointless complaining and then complacancy later. if you really think tha5t these operators would get away with this in other countries... you are sorely mistaken. all the infrastructure has been paid for many times over and we are not getting any benefit.
@everybody else. call it lining the fatcats pockets if want, but the simple fact of the matter is that they can do it and you are allowing them to do it. i would in their shoes and lets face it, so would you. however, if someone lit a fire under their arses, see how quickly things would change. fact of the matter, mtn is using the fat profits from SA to expand in the world - and they are not going to top anytime soon unless the consumer changes drastically (about as likely as lightning striking every single person in SA at the same time, three days in a row)
fz1
Senior Member
That's a good point. A lot of providers also provide an e-mail-to-SMS service (I know Vodacom does [or used to - haven't used mine in age] e.g. [email protected]). So, you could potentially communicate (near-instantly) with whoever you need to by sending them an e-mail (from your phone, via GPRS with a much lower per MB cost than SMS
) that is delivered to their phone... (Of course you can do e-mail to e-mail, but unless it is push e-mail or the person is constantly checking their e-mail, it's not "as instant" or convenient as an SMS).