The Competition Commission's cheaper data plan in South Africa is a bad idea

Tomorrow's headline: "Why the competition commission shouldn't dictate prices". Coincidentally I see the Datsun Go is a partner article.

Let's just cut to the chase. It's not just populist rhetoric that data prices are too high and have been so for the last 10 years at least. This has been discussed numerous times on here with facts. So it doesn't matter which metrics you use and from when you will get to the same conclusion.

It will be very difficult for Vodacom to justify data price cuts to shareholders given its current circumstances.
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No quite the opposite. When revenue drops you drop prices to secure more consumer spending. Clearly competition is having an effect and it's only a monopoly that can't see that and react.

Also Rain didn't just try to launch a product they actually did. It's been from 11-6PM from inception. So perhaps before criticising others on facts do your own fact checking first.
 
Doesn't the roaming agreements prove that networks collaborating can work? Like say the new spectrum gets released, couldn't they pool their resources to save money on building networks? Collaborate on building networks, compete on price?
 
lotus123 said:
Three separate posts from MyBB on the same topic in as many days?
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My only comment is mybb is the Bell Potinger to MTN & Vodaom.

Push the narrative the CC is doing something evil and put pressure on them to be more lenient on regulations. :)
 
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Gudnews said:
Doesn't the roaming agreements prove that networks collaborating can work? Like say the new spectrum gets released, couldn't they pool their resources to save money on building networks? Collaborate on building networks, compete on price?
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My personal opinion is that there should be more networks. We have 5 (or possibly 6) which took us practically forever to get there but we could do with another 3. If only we had a regulator with foresight they would have reserved the "new" spectrum for that as the current ones have enough spectrum as it is. The digital dividend should definitely not go to any national operator as so far they've done a poor job of servicing underdeveloped communities and will only use it to help increase their bottom line.
 
Swa said:
My personal opinion is that there should be more networks. We have 5 (or possibly 6) which took us practically forever to get there but we could do with another 3. If only we had a regulator with foresight they would have reserved the "new" spectrum for that as the current ones have enough spectrum as it is. The digital dividend should definitely not go to any national operator as so far they've done a poor job of servicing underdeveloped communities and will only use it to help increase their bottom line.
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Maybe the current model is flawed as you believe but even the US is not teaming with big players.
https://www.digitbin.com/top-best-sim-networks-in-usa/
https://www.fiercewireless.com/wire...nt-and-more-stacked-up-q3-2018-top-7-carriers
 
Gudnews said:
Maybe the current model is flawed as you believe but even the US is not teaming with big players.
https://www.digitbin.com/top-best-sim-networks-in-usa/
https://www.fiercewireless.com/wire...nt-and-more-stacked-up-q3-2018-top-7-carriers
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Correct, the model that there should be a lot of big players is flawed. What we need is a dozen or so smaller players. The networks would have you believe that it's not feasible but only because they rely on the business model of trying to service the whole market.
 
Big players have made sure smaller ones don't really get market share. Level the playing fields.
 
And again no mention of the exorbitant fees charged by the government to get licences. Only SA government that greedy - other countries see the necessity of cheaper data to their people. So will free data to the masses cost who again?
 
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