S.Africa's MTN, Cell C urge ban on free cell phones

[Sneeky]

Thu Aug 4, 2005 4:25

South African cell phone operators MTN and Cell C want to scrap the practice of locking customers into long contracts in exchange for a free phone but market leader Vodacom says this would stifle innovation.

http://za.today.reuters.com/news/ne...RTRIDST_0_OZABS-TELECOMS-SAFRICA-20050804.XML

 

[mccrack]

Thanx Sneeky.

Vodacom i do believe Vodacom have a point in that the subsidised phones help bring newer technologies into the market. I cant imagine the majority of users purchasing new cellphones with all the bells and whistles on their own, it's just too costly.

 

[caroper]

But this is the first crack in the cartel.
Now that ICASA has shown its teeth all sorts of things are bubbling to the surface.

 

[savage]

I must be honest though, I'm all for free cell phones. It's the primary reason why I get / take out cell phone contracts.... Having to purchase a phone seperately at x thousand rand will definately make me think twice...

 

[slimothy]

Thanx Sneeky.

Vodacom i do believe Vodacom have a point in that the subsidised phones help bring newer technologies into the market. I cant imagine the majority of users purchasing new cellphones with all the bells and whistles on their own, it's just too costly.

well the vast majority of the 25million cell phone users in this country are on prepaid so you are wrong because they bought their phones. Some are fancy and some arent but at the end of the day they paid only as much as the phone cost and not 2 times the retail price.

overseas you don't get contracts because it is basically a scam, if you want to pay off a phone for months on end (and end up paying double or more for it) then that service should be handled by the retailer and NOT the service provider

"free" phones my ass,

 

[VQuest]

It's all about choice. They should still keep the option of taking out a 2 year contract with a "free" phone for those who prefer it. But one should not be forced into a 2 year contract.

I'm with savage on this one. I personally don't mind taking out a contract if I can get the phone I want. It's the same as paying it off over 2 years plus I still get my free minutes on the weekender plan. It suits me fine getting a nice new phone every 2 years.

I don't see why they can't have different options.

"free" phones my ass

You're right, the phone is not free. They should call it an upfront phone.

 

[BTTB]

This is my argument.
I am happy with my 6210 or whatever it is called.
It does the job of ringing when someone calls and thats all I need.
All these frills and whistles are for another segment of the market.
It impresses my kids, but not myself.
As I have my own phone all I want is a cheap service that I can pay monthly for. End of story.

 

[VQuest]

This is my argument.
I am happy with my 6210 or whatever it is called.
It does the job of ringing when someone calls and thats all I need.
All these frills and whistles are for another segment of the market.
It impresses my kids, but not myself.
As I have my own phone all I want is a cheap service that I can pay monthly for. End of story.

Thats exactly why I say we need choices. Whats good for you might not be good for the next person.

 

[kaspaas]

To me this is a simple issue to resolve:

Keep the system as it is, but add month-2-month postpaid packages without the burden of a subsidised phone.

At the end of 2 years, one is then free to either get a new phone or go for a reduced subscription.

It leaves the door open to switch networks after two years, as well as to enter a new "subsidised contract" when a real cool phone appears.

 

[ZuBS_]

It all depends on how much they are willing to bring down monthly subscriptions, if they can offer us R50 contracts with a phone, im sure without a phone they can offer us contracts for as little as R25-35. That would incenvise alot of us to buy our own phones

 

[qdada]

To me this is a simple issue to resolve:

Keep the system as it is, but add month-2-month postpaid packages without the burden of a subsidised phone.

At the end of 2 years, one is then free to either get a new phone or go for a reduced subscription.

It leaves the door open to switch networks after two years, as well as to enter a new "subsidised contract" when a real cool phone appears.

I support you 100 %

 

[slimothy]

the whole point of this from the companies is to lock you in for 2 years or whatever, if you're with vodacom.. you're stuck there no matter what happens with cell c or mtn. If you want a phone paid off over a peroid of time and dont want to get it from a retailer but want a contract then you should be able to get it (even though if you add the numbers its a scam... but if you're happy with that then fine) BUT they need to offer proper competitive ways to keep customers in conjunction with contracts. I think thats the change they should make.

Offer contracts for some and lower tarrifs for others.

 

[stoke]

I want to know why I am not allowed to import cell phones and sell them to the public.
Why exactly is there this crap that prevents me from doing that ?
Not one cellphone manufacturer will allow me to do it.
I feel another Ster Kinekor/Nu-Metro in the making.

 

[Sneeky]

well the vast majority of the 25million cell phone users in this country are on prepaid so you are wrong because they bought their phones.

Vodacom will argue that a lot of the phones used by prepaid people, were not actualy bought, but filtered down from contract customers over time.
I tend to agree with that as all of my old phones are in use by people on prepaid.
Also by dishing out free phones they keep the technology rolling and up to date, so it feeds their (cell companies) own machine.
I dont think free phones are bad.
I think they should stay, but maybe people should be forced to pay a little more upfront for them, and have shorter contracts, a year max, then after that year if you are unhappy, you and your phone can move along to any other cellular provider with the same number(ie nobody has a hold on you with your number). I know there was talk about numbers being flexi now, dunno if its possible yet, maybe.

 

[martin]

I think the main problem with subsidised handsets is that the cellphone companies use this as an excuse to justify their high call charges.
- 'We have to recover our initial investment' (sound familiar?)
or
- 'We may charge higher, but we add more value'

Ofcourse this wouldn't even be a problem if there was true competition in the cellphone market.

 

[doobiwan]

I'm okay with the subsidies, but I'd prefer it if they'd offer shorter contracts for cheaper phones, instead of bundling things like PlayStation's and cash back offers.

Another criticism is that, while you can get cheap contracts eg reduced MyCall 100 @ R39/R49 a month with a cr@p phone, it's still 24 months. If you want the contract with no phone month by month, you have to fork out a full R150 a month.

O another gripe - contract exit. If the .gov wants to have an impact, it'd be easy. Stop the Cell companies charging exit fees. If I want to cancel after 6 months, I simply return the phone, and the contract is terminated. That make the Providers squirm!

 

[mikkelz_za]

Oops, wrong thread