Vodacom CEO discusses data pricing and rigid contracts

The discussion with Uys ranged fairly wide and as such there are a few issues that he touched on that I would like to talk about.
Which issues were left out in this article?? :confused:

Uys said that the price of data was going to fall, but that to engage in a wholesale price slashing would have a real impact on the quality of service that Vodacom customers experienced on its network.
A couple of suggestions would then be in order I guess:
  1. Tell us WHEN the price of data will fall, and by HOW MUCH:confused:
  2. Vodacom refuse to accept new data clients to ensure its current "high quality of service":whistle:
  3. Vodacom place ads in the media stating that its network can not support any new customers, but existing customers are at least assured of its current "high quality of service"

With a bottleneck on the network that already provides internet services to 9 million of its customers and which has 2 million regular users, you can understand why the company is not exactly keen to encourage even more people to use the network. The fact is that the more people that use the network the lower the quality of service will be. Encouraging power users to hammer the network by dropping costs will reduce the experience of the network for all users and I think we can all understand why Vodacom would not want that to happen.
A novel solution to the backhaul problem: INCREASE your data rates, that will ensure you carry LESS DATA on your network and it won't get "hammered".

My impression is that Uys knows that broadband prices are higher than they should be but that the company is holding them steady until the network is ready to cope with additional load.
Rather INCREASE the prices, the few customers Vodacom will have left will then pay for the network upgrades!:D

His argument that it is better to provide a steady 1Mbps to all consumers than 42Mpbs to one consumer is something that resonates with me. Leave the heavy downloads to the wired connection and give us a decent connection for our smartphones, tablets and laptops and you will keep most of your customers happy most of the time.
What about the customers who are perfectly happy with 1 Mbps at a lower price than 2 Mbps, etc? :wtf:

The other issue that I raised was that of contracts and why, in my view, contract customers seem to get the short end of the stick. Uys said that there have been, over the past year, increases in the amount of free minutes that contract customers have been entitled to as a way of increasing the value that they get from their contracts
.
I thought this article was about MEGABYTES, not MINUTES? :confused:
According to Uys, we can expect to see various contracts that offer: just a basic connectivity contract; a contract with a financed phone; and a contract with a subsidy and a financed phone. Essentially the consumer protection act allows you to cancel a contract at short notice with only limited recourse on the part of the service provider to penalise you. He said that if these new contracts aren’t already available they will be very shortly and that is good news for all of us.
Doesn't he know whether the contracts are available or not? EISH! :wtf:

I would have preferred that Vodacom (and the other networks as well) were more proactive in getting their contracts in line with what they will be forced to do when the consumer protection act comesi nto effect, but at least when it does happen we should all be a bit better off.
"Vodacom" and "proactive" in ONE sentence? You're so funny! :)

In conclusion: What changed your mind about Vodacom? NOTHING in this article should change what you felt about Vodacom when you first published that letter. I smell a rat.

PS: Can you help me get some reimbursement for the brilliant suggestions I offered above?
 
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Thats all very solid....and entirely irrelevant. The customers don't care about what problems the supplier faces. They care about results and as long as CellC provides better results (for whatever reason), VC will bleed customers.
 
Thats all very solid....and entirely irrelevant. The customers don't care about what problems the supplier faces. They care about results and as long as CellC provides better results (for whatever reason), VC will bleed customers.
I agree: If I lose my job will Vodacom provide me with data at a reduced price until I get another job?
 
Although the core network is mostly built, Uys said that the company is having real problems getting local municipality approval to lay the cables that connect the base stations to the core network. That would require some digging and approvals for doing that have not been forthcoming.

Actually, Vodacom must first get approval from all service providers(Electricity Local and Escom, Water, Metro Gas, City Parks,Telkom, MTN, Neotel just to name a few) then they need to go with those approvals to the Roads Agency and apply. The Roads Agency will only approve the way leave to dig if they have all the other approvals with the application. If not the Roads Agency just send them away to get them, the Roads Agency should not take more than 2/3 days to approve the way leave. It's not up to the Roads Agency to get the approvals from the other service providers that's the responsibility of the applicant.
 
If they don't want any new customers they should stop making all these stupid ads (that they've been making for years) and use the money to upgrade their network for when they do want more customers. It really is getting serious now. I mean with all these Vodacom ads everywhere I look the network is going to crash! They need to remove the ads! What if they get new customers because of the ads! Those people with Vodacom, please note: If the network is down it is due to them spending your money on more ads etc. than upgrading the network.
 
What still irks me about Vodacom is with the interconnect rate reductions.

They said if they agree to a reduction, ICASA must give them a guarantee that it won't be changed for the next two years? Or something like that....whatever.

So, what they said, translated to the following (IMHO) : We like taking money off the poor, stupid South African public. Don't try to stop us, or else......

Was the first day that I was really ashamed to be a Vodacom customer. :(
 
http://www.vodacom.com/pdf/trading_statements/q32011.pdf

wow those quarterly results are FANTASTIC i wonder what you're doing with the profits...certainly not reinvesting them into your infrastructure otherwise we'd actually have competitive pricing, supposedly...

Looks like Ben Kelly has developed a man crush on Vodacom's CEO, nice article on "how to make friends and influence the media" this is nothing but a press statement from the Pieter Uys
 
So Vodacom has been overcharging for data in order to help their customers? I never knew they had such big hearts :D
 
Am I the only one that thinks this is epic good news. Yes it sucks for those of us who are stuck on high cost contracts but it means that there is no way in the foreseeable future for Vodacom and probably MTN to compete with Cell C.

So lets say it takes 18-24 months for them to get up to speed, this gives Cell C the very thing they desperately need to continue to compete. Customers! And from the responses in this forum and all the people we come into contact with it will most likely be a lot of them.

3 Balanced networks should ensure aggressive competition going forward, so good for all of us!

Just looking on the bright side. Only 10 more months of Vodarape for me and doing my bit by bringing about 5 customers with me. Goodbye Vodacom and MTN you cartel operating azz clowns.
 
I read "blablabla we're **** scared of the consumer protection act and this is our main focus now blablabla"
 
Wow it's really amazing at the amount of people bitching cross networks... MTN customers bitch and moan about how they get triple billed and their services sucks. whilst CellC customers bitch about the lack of service and their ultra fast 4(great service) griding to a halt :D

Then we have 8ta... Telkoms adopted child from another mother who can't allocate users airtime properly... I wonder what Neotel will bring to the table :D

Such is the sad state of how badly we the consumers get gang raped...
 
So after all his ranting and raving, Ben Kelly gets an interview with Pieter Uys and wimps out. Pathetic.
 
So after all his ranting and raving, Ben Kelly gets an interview with Pieter Uys and wimps out. Pathetic.
Even that guy Ben Ladin has more street credibility than Ben Kelly - at least Ben Ladin is prepared to take on the big guys with some actions, not just words. :D
 
what have we gained?
nothing
u cant drop ur prices cos more ppl will use it n jam the network?
:confused:
 
lol, absolutely classic suggestion. me likes

hahaha....Vodacom is becoming like Eskom, asking you to use less of their product in order for them to make a smaller profit.

Absolute genius!
 
Mr Uys's strategy is to keep on repeating this nonsense to gullible journalists, then he and the journalists will start believing it. :D
 
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