I have been advised by Rain that due to the number of users in my area that are connecting to the same tower as me the tower is overloaded , this is also increased due to more people working from home . Which I understand and agree too , however I am getting less then 1 meg and I have paid for a 10 meg speed , yes the traffic will slow the speeds down , however I would say I should get speeds of about 6 to 5 megs , worst case 4 megs , but less then 1 meg is crazy , which means that rain's towers will result in a loss off 99% speed when the traffic on the tower is at max , for me this has been 95% of the day , surely they are aware of this and they have stats to show that their towers are not handling the load , if that is the case why sell more sim's , just advise clients that their area is now full to capacity . However I don't think that in my area we have more than 50 rain users .
Super bad growth planning from Rain in my opinion.
It was so great when they just launched as a little startup. I got great speeds (20-30mbps) consistently for about 2 years.
But I think things changed when they got bigger investment rounds and was said to
grow quickly - which made them introduce the R250 package.... For VC's (Venture Capitalists) it's often all about how many customers (and
market share) you can get, and not necessarily your
net revenue. And they will happily do that at a loss. Why else do you think no other ISP that provides 4G are competing with their R250 uncapped package?
A few days ago, just for the hell of it and maybe to have as backup, I ordered a prepaid Rain sim card. It arrived this morning, I put it directly into the drawer, not gonna use it anytime soon.. It didn't cost me anything.
TINSTAAFL - Obviously covered by their investors.
However, let's be real - If Rain perhaps made their uncapped package R1000 per month instead of R250, it would solve a lot of problems.
In theory that would mean,
1) 4 times less customers. Less support demands. 4x less congestion on the network.
2) Should the price increase 4x, but most customers decide to stay, they now have 4x higher revenue they can use to upgrade their networks.
I think the cheap uncapped and free sim card delivery is great as it brings in a LOT of customers, but it also creates a support burden and put strain on their towers and decrease the experience for customers overall. And I assume the towers aren't being upgraded as they aren't making enough to reinvest into upgrading the already overloaded towers.
But having such a large user base, does increase the companies overall valuation even if they aren't really profiting. I think Rain might just be in the same category as some of these Silicone Valley companies, where they are valued billions, but not necessarily turning big profits.
https://www.businessinsider.com/tec...ons-unprofitable-tesla-uber-snap-2019-11?IR=T