Red Bull Mobile launches with two aggresive pricing models

Zenbaas

Honorary Master
Joined
Oct 23, 2005
Messages
13,782
So for R379pm (R120 more), you get 200 mins on MTN (same as RBM), 25 messages (75 less), 150MB data (350MB less) and a iPhone 4 (bleh!) and a subpar data network.

I Fail to see how thats a better deal?
That's Iphone logic for you :D
 

ColdComfort

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Joined
Jun 4, 2009
Messages
234
So for R379pm (R120 more), you get 200 mins on MTN (same as RBM), 25 messages (75 less), 150MB data (350MB less) and a iPhone 4 (bleh!) and a subpar data network.

I Fail to see how thats a better deal?

Is the MTN deal not R200 value in airtime and not 200 min call time so the mtn deal works out at 86 min call time
 

murraybiscuit

Executive Member
Joined
Oct 10, 2008
Messages
6,483
I understand that, but they would be collecting more cash if people were signing up with them, for the same deals/prices.

the issue is around handset and brand loyalty.
cell-c is the provider of premium telephony hardware and a killer data deal
red-bull provides good unbranded handsets with a great bundle for price-sensitive consumers entering the smartphone market.
it's very clever, and as long as the younger crowd place value above fashion, it may just work for rbm.
obviously rbm can't offer this kind of pricing if they were to bundle more expensive hardware.
 

Zenbaas

Honorary Master
Joined
Oct 23, 2005
Messages
13,782
the issue is around handset and brand loyalty.
cell-c is the provider of premium telephony hardware and a killer data deal
red-bull provides good unbranded handsets with a great bundle for price-sensitive consumers entering the smartphone market.
it's very clever, and as long as the younger crowd place value above fashion, it may just work for rbm.
obviously rbm can't offer this kind of pricing if they were to bundle more expensive hardware.
Well I'll be opening a contract for my wife come end of the month. The deals are just too good to skip.
 
K

kingrob

Guest
I understand that, but they would be collecting more cash if people were signing up with them, for the same deals/prices.

Yeah, just a different way to market your products.

Maybe a person had a bad experience with CellC in the past & this is a way to bring them back onboard.

It's a win-win situation.
 

omegaselect

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Joined
May 17, 2010
Messages
116
I understand that, but they would be collecting more cash if people were signing up with them, for the same deals/prices.
Cell C is 'buying' market share.

Go back a year and Cell C was basically bankrupt with and outdated, small network, massive losses, few customers, etc.

If you read business theory, one thing that is often seen, normally before the final collapse, are these knee-jerk reactions to try and 'save' the company by 'turning it around'. sometimes this works, mostly it does not.

Two things these companies do out of desperation is to make a last-ditch investment and then 'buy' market share. But this they have to do by discounting way below any level of profitability.

How they'll turn this whole thing profitable is not understood, but at least they're signing up customers. The thinking is, we'll figure out later how to actually make money from having lots of customers who is costing us more than we're getting.

Of course while the specials run, they're the darling of the industry. But when they inevitably fail, everyone attacks them.

Recognise Cell C here? And Virgin?

They had a 2G network and a small number of customers. Burning billions of rands, basically going down in flames.

So they realise they need to get with the program and not only build a new network, but need to get customers on it.

So they get the money and start building a 3G network, which means even more debt to service.

Then to get customers they sell at below cost. The Redd Bull and 3G data specials fits in here and is the answer to your question.

Where will this all end? Typically in tears.

But maybe, just maybe, something magical happens along the way and all these customers paying at, or below, cost, suddenly becomes profitable and the company flourishes.

What are the chances?
 

zaidmo

Well-Known Member
Joined
Jun 16, 2009
Messages
407
I got a MTN 200 contract, plus 100MB data bundle.
Cost is R280 per month, for less then 200 minutes, and call costs over R2 per min.

I just need 100 minutes per month.
RMB can give me what I need for R149.
Migrating off MTN in July, unless they beat this offer
 

zaidmo

Well-Known Member
Joined
Jun 16, 2009
Messages
407
Fact, or your opinion?
What are your sources to indicate that Cell C is in massive debt, near end of life? Please share!

Cell C is 'buying' market share.

Go back a year and Cell C was basically bankrupt with and outdated, small network, massive losses, few customers, etc.

If you read business theory, one thing that is often seen, normally before the final collapse, are these knee-jerk reactions to try and 'save' the company by 'turning it around'. sometimes this works, mostly it does not.

Two things these companies do out of desperation is to make a last-ditch investment and then 'buy' market share. But this they have to do by discounting way below any level of profitability.

How they'll turn this whole thing profitable is not understood, but at least they're signing up customers. The thinking is, we'll figure out later how to actually make money from having lots of customers who is costing us more than we're getting.

Of course while the specials run, they're the darling of the industry. But when they inevitably fail, everyone attacks them.

Recognise Cell C here? And Virgin?

They had a 2G network and a small number of customers. Burning billions of rands, basically going down in flames.

So they realise they need to get with the program and not only build a new network, but need to get customers on it.

So they get the money and start building a 3G network, which means even more debt to service.

Then to get customers they sell at below cost. The Redd Bull and 3G data specials fits in here and is the answer to your question.

Where will this all end? Typically in tears.

But maybe, just maybe, something magical happens along the way and all these customers paying at, or below, cost, suddenly becomes profitable and the company flourishes.

What are the chances?
 
K

kingrob

Guest
Cell C is 'buying' market share.

Go back a year and Cell C was basically bankrupt with and outdated, small network, massive losses, few customers, etc.

If you read business theory, one thing that is often seen, normally before the final collapse, are these knee-jerk reactions to try and 'save' the company by 'turning it around'. sometimes this works, mostly it does not.

Two things these companies do out of desperation is to make a last-ditch investment and then 'buy' market share. But this they have to do by discounting way below any level of profitability.

How they'll turn this whole thing profitable is not understood, but at least they're signing up customers. The thinking is, we'll figure out later how to actually make money from having lots of customers who is costing us more than we're getting.

Of course while the specials run, they're the darling of the industry. But when they inevitably fail, everyone attacks them.

Recognise Cell C here? And Virgin?

They had a 2G network and a small number of customers. Burning billions of rands, basically going down in flames.

So they realise they need to get with the program and not only build a new network, but need to get customers on it.

So they get the money and start building a 3G network, which means even more debt to service.

Then to get customers they sell at below cost. The Redd Bull and 3G data specials fits in here and is the answer to your question.

Where will this all end? Typically in tears.

But maybe, just maybe, something magical happens along the way and all these customers paying at, or below, cost, suddenly becomes profitable and the company flourishes.

What are the chances?

I agree with you, but then....what is the real cost to the mobile operators? Nobody knows that, except for the operators.

How much does 1MB of data really cost them, 1 SMS, 1 MMS, or 1 minute of voice. If we had those figures, we could draw a conclusion and agree or disagree.
 

murraybiscuit

Executive Member
Joined
Oct 10, 2008
Messages
6,483
Cell C is 'buying' market share.
/snip

of course they're in debt. they took a huge loan from a chinese bank and will take a few years to pay it off. you can't make money without spending money.
they will probably pay it off faster if they can slot in a few mvno's like red bull to slot into market segements which aren't competing with them.
your assertion that they haven't done their sums right can only really be proven with time, unless you have some kind of enron cover up story that you'd like to tell us.
smells like another anti-afrihost "unsustainable" claim...
 
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p[ay3r

Active Member
Joined
Jun 16, 2009
Messages
48
Twista reads forum......casually walks to the garage. Grabs his pitch fork. Wait...takes two. Jumps into his overpriced Toyota....drives on the N1. Towards Vodaworld. Pays "0.70 cents" per KM. Enters Vodaworld.

FINDS PIETER UYS and shoves the pitch forks up his A$$. Wonder how he feels getted shafted. :-0 Twista feels good. Drives back to Randburg...pays 0.70 cents per km. Continues 19 month VC contract.

http://img197.imageshack.us/i/image001tj.jpg/

Just makes me remember this..
 

rbarryza

Well-Known Member
Joined
Apr 8, 2006
Messages
282
Hey there dude could you fill us in more on this or give a link as this sounds great to me....I'm so tired of MTN whacking my bank balance to zero and I still have six months left of R149 a month(for a lousy r100 airtime and crazy call rates and data charges-which add up to over R800 per month.)

Now the thing is in total i only owe them R149 x 6 = R894 but the a$$wipes want to charge me over R3000 to cancel!!!!Plundering fools,i hope the act screws them over worse than what they've done to me over the last 8 years.

I want to change over to red bull mobile...with these kind of contracts i think blackberries might come down in sales a bit as we dont need their slow free browsing any more...500mb should cover browsing only needs for most people.

I can't remember the link, but google for Consumer Protection Act, and you'll find a lot of news on it. Basically : they cannot charge you more than 10% of what you would have paid them for the rest of the contract (in your case 10% of R894 = R90), plus the remaining subsidy cost of the phone (If the phone is R2000 new, you'll have to pay back 6/24 * R2000 = R500). You'll see that suddenly the networks now show what the subsidy cost of the device is, also required by law. The new law is great for consumers, maybe even a little harsh on service providers in some cases, but they brought it onto themselves by writing contracts that fleece the consumer up to now. The balance is being restored.
 

rbarryza

Well-Known Member
Joined
Apr 8, 2006
Messages
282
I understand that, but they would be collecting more cash if people were signing up with them, for the same deals/prices.

It's to do with a marketable image. RB has an image that appeals to a certain market. That same market would not necessarily have move to Cell C, never mind the price. In the long run they win, by winning over customers they would not have won over, even at a lower price.
 

Shayd

Expert Member
Joined
May 12, 2009
Messages
3,242
Cell c has a new CEO that instilled a new direction for the company. Nokia is doing the same thing. While it's entertaining to listen to the tinfoil hat brigade I think cell c is most likely just making lower margins and aiming at higher volume.
Just like real world class operators.


Please someone save this post so we can look back and laugh in 2 years when cell c is no longer a small player in our market.

Sent from my Galaxy S running darky's rom sent to me by little green robots from the future.
 
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flarkit

Executive Member
Joined
Mar 27, 2006
Messages
6,477
i'm due for vc upgrade at end of the month.... wonder if i should cancel and port instead. this looks a seriously good deal!

Same here. I'm seriously considering porting. The only questions are how good CellC's call quality and coverage is and what happens if things do go pear-shaped for them in the next 2 years?
:confused:
 

CAPS LOCK

Executive Member
Joined
Jun 29, 2009
Messages
5,797
Whatever the reasons are, we ALL need a competitive and successful Cell C in our market, otherwise we will all be relegated to the dark festering pit of mobile service provided by the behemoth bed-partners VC and MTN. In what was supposed to be a competition in the mobile market, MTN and VC formed a love tryst, and hence the monopoly. It is incumbent on us now that we awake that filthy giant and make him come to the party too. I will support Cell C, after all, they certainly have made it easy with their rigorous pricing and service. Indeed, exciting times ahead …
 

oronte

Expert Member
Joined
Dec 11, 2006
Messages
2,187
Great deals, stupid phones. If they get some decent phones in I will certainly consider them in a year or two (won't be burned like I was with Virgin, although it was prepaid).
 
K

kingrob

Guest
Great deals, stupid phones. If they get some decent phones in I will certainly consider them in a year or two (won't be burned like I was with Virgin, although it was prepaid).

Even if you put the phone you get with the deal in a drawer and forget about it, or sell it, it is still a bleddie good deal. But the Huawei phone is actually not that bad.

Vodacom's equivalent is : R450 for 100SMS, 100 Voice minutes & 250MB data.
 
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