The biggest reason for expensive mobile data costs revealed

Hellhound105

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I also thought it was spectrum that needs to be refilled everyday.
Cause remember Fibre doesn't have spectrum issues and thus can be cheaper.
Hence why we get equal uploads and downloads.

Oh yeah.....we dont
 

Bad1

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vodascum and mtn crap is the problem, keeping data prices high, I said this many times over and I say it again, i don't just burp things out, these two companies are milking us and preventing smaller providers from gaining market share
 

richjdavies

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Don't tell the Government. Pretty sure competition would be the death of Eskom or the post office or SAA or SABC or.... The list goes on... Some of which have died already of course!

I do wonder though if there is more competition between 2 or 3 or 4 operators though. It's not a simple count that determines competition. It's how those companies are run, regulated (or not!) and the environment for investment.

Cell-C and Telkom are increasingly NOT competing with MTN and Vodacom. I'd say the biggest reason for drops in data prices these last few years is probably RAIN!

This study is pretty weak on that point. Obviously where there is a monopoly (here's looking at Ethiopia) obviously network coverage is terrible and prices are high... Where's there's 2 or 3 it starts getting complicated.
 

krycor

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Don’t worry.. the day they release spectrum the MNOs will release a statement about the cost of telecoms equipment which is priced in dollars and that bandwidth + spectrum only contributes so much..

Reality is that unless gov forces it directly or affords no protectionism (monopoly, duopoly, trioploy..) the lack of competition will mean continuation of sellers market.
 

Swa

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tl;dr non-clickbaity title: everything we already know.

What they don't mention is that in the markets that are truly thriving you have 8-10 operators directly competing. Some have 16-20 in total. We should stop with this idea of having an operator cover the whole country as it's completely counter to the objective of having affordable communication.
 

richjdavies

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... you have 8-10 operators directly competing. Some have 16-20 in total.

Real operators or just MVNOs? SA has lots of MVNOs that you've probably never heard of :)

On the other point of covering the whole country, I'm not sure Telkom, Rain or Cell-C think they need that! Roaming + home network does make some sense...
 

Swa

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Real operators or just MVNOs? SA has lots of MVNOs that you've probably never heard of :)

On the other point of covering the whole country, I'm not sure Telkom, Rain or Cell-C think they need that! Roaming + home network does make some sense...
Real networks. In the U.S. you get like 8 operators in a single area. The spectrum excuse is bull. True you need more spectrum for that but each operator has to make due with more or less the spectrum you have now. Overall there are more but each just covers certain areas so you either roam or have patchy coverage.
 

krycor

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tl;dr non-clickbaity title: everything we already know.

What they don't mention is that in the markets that are truly thriving you have 8-10 operators directly competing. Some have 16-20 in total. We should stop with this idea of having an operator cover the whole country as it's completely counter to the objective of having affordable communication.

This is why they want WOAN going forward.
 

Gudnews

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Oct 13, 2014
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Real networks. In the U.S. you get like 8 operators in a single area. The spectrum excuse is bull. True you need more spectrum for that but each operator has to make due with more or less the spectrum you have now. Overall there are more but each just covers certain areas so you either roam or have patchy coverage.
On paper maybe but in reality the US is also dominated by a handful of players.
So it seems 4/5 is the max number of operators the ecosystem can support.
 

konfab

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Reality is that unless gov forces it directly or affords no protectionism (monopoly, duopoly, trioploy..) the lack of competition will mean continuation of sellers market.
The reality is that most people, including yourself, don't understand economics.

Reality:
-fs-Figure-14-2018.xl.jpg

-fs-Figure-15-2018.xl.jpg



So you can argue that the prices are mostly the same from eMpTyN and Vodascum. as they were in 2013. Except this is only one side of the story. It doesn't take into account inflation.

Using this handy calculator, you can see the rand is worth 34.2% less :sick: than it was in 2013 this time last year.
https://inflationcalc.co.za/?date1=2013-10-24&date2=2019-10-24&amount=149

Yet we are still paying the same for the data. Which means that when you take the inflation into account (149*(1-0.342)), the 2013 price of the current data price is R98.

Therefore the theory that mobile prices are not dropping because of the"monopoly" is absolute rubbish.

Unlike just about everything else in this wretched country, internet is actually getting cheaper for people... The mobile industry is working perfectly, last thing we need is for the government, who cannot even release a document correctly, tell people what the price is.

graph sources:
https://www.itweb.co.za/content/LPwQ5MlyKoOqNgkj
 
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