Vodacom CEO explains why mobile data expires

[jannievanzyl]

You're entirely missing the point I was making. Vodacom wants to continue with 2G indefinitely because of some businesses invested in it. I didn't say Vodacom was using outdated equipment even though 2G is definitely not current any more. If you don't take a real stance like some operators in other countries have done these companies will continue to hold the rest of us back with their outdated tech because it works for them. Vodacom doesn't have a road map or incentives to phase out old technologies. They are relying on just getting more spectrum indefinitely.

Vodacom (and other MNOs) would LOVE to switch off 2G. It's highly inefficient compared to 4G, so why would we not want to switch it off. Except that a significant portion of ordinary South Africans will lose service. But, I guess, it does not really bother you with your fancy smartphone?

It tells me you're bullsh#tting us with marketing drivel. Show us where Vodacom has decreased the price of data significantly in the last 8 years of even slightly in the last 3. That is the only definition of a price decrease. Not when people have been making use of wholesale rates by paying more.

I told you how to check for yourself. But you don't want to, because you know what it'll show.

 

[wizardofid]

Vodacom (and other MNOs) would LOVE to switch off 2G. It's highly inefficient compared to 4G, so why would we not want to switch it off. Except that a significant portion of ordinary South Africans will lose service. But, I guess, it does not really bother you with your fancy smartphone?

I told you how to check for yourself. But you don't want to, because you know what it'll show.

So far you have mentioned only that prices haves decreased, kindly show us the evidence that bundles has decreased in the last 4 years. Explain why a Namibian network is able to charge less then R20 odd a gig who has less buying power and subscribers then the whole of gauteng and still turns a profit.

How an Egyptian network provider is able to charge $1.20 a gig.It's not about spectrum it's not about network congestion considering vodacom is constantly fighting with Mtn and peddling that you have South Africa's best and fastest network which you got reprimanded for when actual tests didn't collaborate claims, instead other informational stats is used to lay claim to be honest a petty rivalry.

It's a pity we have a toothless government and governing body that is unable to effectively protect consumers from corporate greed and ruthlessness, what has vodacom ever done for the consumers in general that wasn't done to further their own agenda and nefarious plots and plans. Vodacom doesn't champion consumerism, if it did it would have gotten rid of OOB altogether.What has vodacom ever championed for the consumer to the direct detriment of their own bottom line and not just some thing that they could do without.Vodacom doesn't do any thing unless they are told to do so or out of free will, besides more often then not they fight tooth and nail to not do so some thing when ordered to do so. How you end up putting a positive spin on every thing as the for the good of the consumer, behind the scenes it's about he bottom line is beyond me as Joe average simply doesn't know any better and you prefer they remain oblivious to the fact they can get better and deserve cheaper data and calls.The reason it's not happening is because of greed. You can moan about spectrum all you want, I would like to see what happens when you get your precious spectrum, as your argument has always been prices will come down when we get more spectrum, if we ever get the digital migration done, and they moment you get your allocation I am going to refer back to this post as to see what the new excuse is. Shame on you........

 

[jannievanzyl]

So far you have mentioned only that prices haves decreased, kindly show us the evidence that bundles has decreased in the last 4 years.

Vodacom's data volumes and revenue are published. Knock yourself out.

(You're making the claim that prices have not come down, burden of proof is on you.)

 

[f2wohf]

Vodacom's data volumes and revenue are published. Knock yourself out.

(You're making the claim that prices have not come down, burden of proof is on you.)

I went through your report a few days ago where it is stated that data prices went down something like 21%.

Though, I have a feeling that data prices have reduced on seldomly used bundles (daily bundles for example) and OOB but not at all on the main bundles (30 days 1Go for example) so it looks a lot like a marketing gimmick to present advantageous numbers.

There is absolutely no explanation on how this number of 21% is calculated.

And I'm absolutely sure it did not decrease your data value sold by 21% at similar volume since data revenue grew by 13%. How would you decrease value by 21%, get only 4% customers more and still get revenues up by 13%?

 

[Speedster]

Would be great if Jannie simply manned up and said something along the lines of "our pricing structure and rollover policies are designed to yield maximum profit / return for our shareholders" instead of trying to spill a bunch of technical reasons. Vodacom is clearly a bottom-line driven entity, why not just own that?

 

[wizardofid]

Vodacom's data volumes and revenue are published. Knock yourself out.

(You're making the claim that prices have not come down, burden of proof is on you.)

https://techcentral.co.za/mobile-data-prices-how-operators-stack-up/45157/
2013

Vodacom's data volumes and revenue are published. Knock yourself out.

(You're making the claim that prices have not come down, burden of proof is on you.)

Prices from 2013

Prices from 2014

And the prices from 2018 which is current, you added more bundles but the bundles from 2014 have not changed in prices particularly the 500MB, 1gb and 2gb, adding free nighttime data or short expire bonus data does not make for price reduction, below 500mb has seen changes, but your 500MB, 1gig , 2gig bundles IS exactly the same price it was in 2014.How is that a price reduction ?

 

[j4ck455]

“For example, if you use the Gautrain and you buy the 7-day package, you get a discount,” he said.

“This discount is possible because the Gautrain already calculated that, on average, consumers only use it for five days per week.”

Is Vodacom's CEO accusing the Gautrain's management of extorting money out of customers by deliberately structuring the Gautrain's "Weekly Product" in such a way that the Gautrain's management knows that most people cannot fully utilise the "Weekly Product" within 7 days (BTW this has been extended to 10 days), and deliberately refusing to offer an alternative '5 day product' (that would be mostly fully utilised)?

 

[The_Librarian]

Mobile data rates for Axxess and Afrihost are almost the same - yet Axxess offer a 3 month data rollover on their system, one which I'm happy with.

Why can't the others implement something like what Axxess have (unused data rollover)?

Or is ir just a carrot and stick approach in order to make more money?

 

[ekske1]

Mobile data rates for Axxess and Afrihost are almost the same - yet Axxess offer a 3 month data rollover on their system, one which I'm happy with.

Why can't the others implement something like what Axxess have (unused data rollover)?

Or is ir just a carrot and stick approach in order to make more money?

Remember this golden oldie?

″ If you purchase a standard 10 GB ADSL service you generally actually only pay for about 7 to 8 GB of data. If you then reach your "cap" of 10 GB you have actually used more than you paid for and you have been subsidised by someone that has used less than 7 or 8 GB of data.

If you use all 10 GB the ISP generally makes a loss on your specific account. ‶

https://mybroadband.co.za/forum/threads/solmatrix-uncapped-over-saix.88880/post-1288204

 

[jannievanzyl]

I went through your report a few days ago where it is stated that data prices went down something like 21%.

Though, I have a feeling that data prices have reduced on seldomly used bundles (daily bundles for example) and OOB but not at all on the main bundles (30 days 1Go for example) so it looks a lot like a marketing gimmick to present advantageous numbers.

There is absolutely no explanation on how this number of 21% is calculated.

I explained above. A few times.

And I'm absolutely sure it did not decrease your data value sold by 21% at similar volume since data revenue grew by 13%. How would you decrease value by 21%, get only 4% customers more and still get revenues up by 13%?

Simple. Customers use more data. Not sure where you got volumes stayed the same? In fact, volumes grows like crazy. Every month.

 

[wizardofid]

I explained above. A few times.

Simple. Customers use more data. Not sure where you got volumes stayed the same? In fact, volumes grows like crazy. Every month.

Seriously Jannie arguing with you even when presented with evidence is like taking your "Johnson" and repeatedly smacking it with a blunt object it hurts the first few times but eventually you lose all sensation, you keep on doing for the heck of it.

Fact your 30 day bundles have not reduced in prices, you didn't have the new bundles at the time nor have they changed in prices either.You basically did sweet bugger all since 2014 other then reduce OOB and you recently reduced OOB for the first 5mb after which you apply normal rates.......A Large percentage, I would even hazard a guess vast majority of users are using 30 day bundles in general and they are the benchmark to be measured at as all networks have a min of 30 day bundles.Considering I pulled the information from your own website what do you have to say about that.

 

[marine1]

Will never forget being told here that only a small percentage of people ever go OOB. Do people still believe anything that these companies tell us ?

 

[f2wohf]

I explained above. A few times.

Simple. Customers use more data. Not sure where you got volumes stayed the same? In fact, volumes grows like crazy. Every month.

I'm not saying that volume stayed the same, I'm saying "if we compare at constant volume, I'm sure the overall data value for the same volume did not reduce by 21%.

Data bundles sold increased 54.7% to 766 million, with the average monthly data usage on smartphones increasing 18.4% to 784 MB, driven in part by a 44.8% increase in 4G customers to 7.3 million.

What bundles, no detail?

I see the progression in data customers, not in data volumes sold.

The data traffic up is only displayed for international, not for SA.

I've gone through your report again and can't find anything on the data volume, without data volume, impossible to calculate an average price of data and if it went down by 21%.

 

[Swa]

Vodacom (and other MNOs) would LOVE to switch off 2G. It's highly inefficient compared to 4G, so why would we not want to switch it off. Except that a significant portion of ordinary South Africans will lose service. But, I guess, it does not really bother you with your fancy smartphone?

Yet Australia's Telstra and Optus, Singapore's operators and Japan already have. NTT Docomo did so in 2011 with others following while South Korea started in 2012. The fact of the matter is a lot of people are sitting on 2G because it's currently the only decent coverage. Stop with the false dichotomy of either 2G or a smartphone. There's nothing dictating that a dumb or feature phone can't be 3G.

I told you how to check for yourself. But you don't want to, because you know what it'll show.

As we did. But you can't answer why Vodacom's bundle prices have shown no reduction in price over years. You just keep talking circles around it.

 

[wizardofid]

Yet Australia's Telstra and Optus, Singapore's operators and Japan already have. NTT Docomo did so in 2011 with others following while South Korea started in 2012. The fact of the matter is a lot of people are sitting on 2G because it's currently the only decent coverage. Stop with the false dichotomy of either 2G or a smartphone. There's nothing dictating that a dumb or feature phone can't be 3G.


As we did. But you can't answer why Vodacom's bundle prices have shown no reduction in price over years. You just keep talking circles around it.

That pretty much says it all.Poor planning, poor infrastructure, poor management.Eventually you will need to draw the line and send out an SMS kindly note on 1 Jan 2100 we will be switching off 2g signal in areas with enough 10G coverage.Also kindly note as a result of freeing up spectrum we have reduced data bundle rates for the 20 customers we have left a 500mb bundle for example will now cost R980.0 down from R990.00.We also decided to increase OOB rates 1000% to protect the network.

Cyborgjannievanzyl
Please note burden of proof is on you, to show we have actually reduced bundle rates year on year since stardate 1901.

So far jannie has been nothing but counter productive, with intentional avoidance and going around in circles, the spin doctors would have been a band still if they took a page from his book.The problem I have is whether or not vodacom has sanctioned him to represent vodacom as a whole on MYBB, the short awnser is NO, Jannie is here in his personal capacity, which means he is neither going to give direct answers, nor admit any wrong doing nor is he going to intentionally incriminate him self or his company.He is essentially playing dodge ball with him self without the ball, HAHA missed me.....!!!!!.

Head of innovation ? Right now, shamefully he is acting and behaving more like head of uninnovation............With the amount of vodacom bashing going on, who wouldn't want to not incriminate him self.......

 

[Mrlepen]

Vodacom must keep shafting you people until you leave and join other networks. They won't decrease prices because they know you guys won't leave Vodacom , same like banking if you not happy leave that bank and bank with another one.

 

[Johnatan56]

I'm not saying that volume stayed the same, I'm saying "if we compare at constant volume, I'm sure the overall data value for the same volume did not reduce by 21%.



What bundles, no detail?

I see the progression in data customers, not in data volumes sold.

The data traffic up is only displayed for international, not for SA.

I've gone through your report again and can't find anything on the data volume, without data volume, impossible to calculate an average price of data and if it went down by 21%.

I bet it was people getting wiser about OOB, so price went down because less people got caught by it.

 

[jannievanzyl]

Yet Australia's Telstra and Optus, Singapore's operators and Japan already have. NTT Docomo did so in 2011 with others following while South Korea started in 2012. The fact of the matter is a lot of people are sitting on 2G because it's currently the only decent coverage. Stop with the false dichotomy of either 2G or a smartphone. There's nothing dictating that a dumb or feature phone can't be 3G.

Of course not. Unfortunately a very large % of South Africans don't have your financial ability to buy a 2G or 4G phone.

But - as you know all the answers - here's a business opportunity for you; build an affordable 4G phone and sell it locally. Will need to be around $30. But I'm sure you can do it.

/Hint; don't bother with 3G, it'll likely be switched off before 2G.

As we did. But you can't answer why Vodacom's bundle prices have shown no reduction in price over years. You just keep talking circles around it.

I've answered the question numerous times. But you just don't want to hear. MNOs have a very large number of different products and bundles, some of these are directly made available. To look at a listed bundle price is a very small part of the overall picture. It does not account for all the other ways you get data.

To get a single, overall view, you can use to compare YoY changes, you divide volume by revenue. This automatically takes ALL data offers into account and cuts through all the noise. Doing this shows something like 48% reduction in /MB pricing over the last 3 years.

 

[jannievanzyl]

That pretty much says it all.Poor planning, poor infrastructure, poor management.Eventually you will need to draw the line and send out an SMS kindly note on 1 Jan 2100 we will be switching off 2g signal in areas with enough 10G coverage.

Happy for you to come do this for the Vodacom (MTN and the other MNOs would love to contract your expertise as well, believe me).

You clearly have a good grasp of where these 2G devices are, how you'll migrate emergency services and other mission-critical applications running on 2G and have a plan to allow millions of people who cannot afford a phone over R300 to switch to mor expensive 3G or 4G devices. You'll also handle government, the department of communications and the regulator to convince them cutting services to a large percentage of South Africans is perfectly fine.

So, please send me your details and we'll get you cracking. Globally MNOs battle with this, so you've got a great opportunity here.

So far jannie has been nothing but counter productive, with intentional avoidance and going around in circles,

Actually, I've been giving you all the info we've been discussing here. You either don't get it or intentionally ignore it.

The problem I have is whether or not vodacom has sanctioned him to represent vodacom as a whole on MYBB, the short awnser is NO, Jannie is here in his personal capacity, which means he is neither going to give direct answers, nor admit any wrong doing nor is he going to intentionally incriminate him self or his company.He is essentially playing dodge ball with him self without the ball, HAHA missed me.....!!!!!.

What direct answers? I told you to check for yourself if data prices are dropping or not. Why don't you do that and prove me wrong? What else do you need to know that I can help with? I know it's frustrating for you that I give you info that seems to counter all your conspiracy theories. But show me where I'm wrong and I'll gladly debate it with you.

Reality is you're just arguing for the sake of arguing.

Head of innovation ? Right now, shamefully he is acting and behaving more like head of uninnovation............With the amount of vodacom bashing going on, who wouldn't want to not incriminate him self.......

Huh?

 

[jannievanzyl]

I'm not saying that volume stayed the same, I'm saying "if we compare at constant volume, I'm sure the overall data value for the same volume did not reduce by 21%.

If you have data to support that, let's discuss. But your own links show data volumes increase.

What bundles, no detail?
I see the progression in data customers, not in data volumes sold.

It's in the actual link you quoted above.

The data traffic up is only displayed for international, not for SA.

WE do report each country separately. Might need to look in the detailed reports.

I've gone through your report again and can't find anything on the data volume, without data volume, impossible to calculate an average price of data and if it went down by 21%.

I'll ask the guys running the results reports how they report it.