Vodacom CEO explains why mobile data expires

WaxLyrical said:
So Scameel still needs to address OOB?

5 years later and he'll still be singing the same tune.
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He and the rest of the exec team deserve the millions they get paid a year. To string a country along for so long should have books written about it, and needs to be studied in marketing schools.
 
isie said:
so it is possible - if 1 service can have a long roll over period another service can as well.
you choose not to enable it plain and simple.
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Exactly, it's a commercial construct. Would you prefer lower prices and a shorter rollover or higher prices and a longer rollover?

It really is that simple.
 
Yet I can buy Cell C fixed LTE at R845 for 200 GB = R4.23/GB
 
rwenzori said:
I suppose the issue is how you word what you sell.

'Buy 5GB data' - all sounds positive, you are getting something.

'Buy two months' access with a 5GB cap' - very negative, a limit on time, a CAP!! (vomit).

Dishonest marketing is what you have.
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I prefer the second. But it will confuse normal subscribers.

When I built Broadband Advanced (remember it?) it should've been sold as buying a "rate". It was a great product and resolved OOB but the message was never well put over.
 
konfab said:
They chose not to enable it because it would increase the price of data to somewhere close to the OOB rate.

The bad behaviour on the part of mobile operators IMO is not the existence of the bundles, but the automatic switch over to OOB. Data should simply turn off when people run out.
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Can't disagree with you on both these points.
 
As an accountant I think the fact that they cannot recognize all the revenue within the expire date is the real reAson they are not doing it.
 
wizardofid said:
@jannievanzyl

While I appreciate engaging the community.We have to be straight up honest, voice revenue is dropping off a cliff, and you can't afford to drop data bundle prices or data bundle expiry.I previously mentioned in this thread and you missed that post. You mentioned that data prices has decreased year on year for the past 20 years, while prices have dropped. The last 3 years hasn't seen any 30 day data price cuts. In 2015 a 500mb 30 day data bundle was R99.00 in 2017 it was still R99.00 and 2018 guess what it's still R99.00 for the same bundle.

You have added night data/weekly ect but you haven't actually dropped Bundle prices at all other then reducing OOB price for the first 5mb, so where is this magic price reduction you are talking about, from what I have seen bundle prices have not changed at all.
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If you look (in our financials) at the amount of data we sell over the revenue generated, you'll see by how much data is dropping. Also remember the massive increase in zero-rated data. Free Facebook is now a HUGE component of our data services, for example. So are free education sites, etc. Rates have also dropped, especially OOB.

If you plot this (and it's a real number however much people want to argue), you'll see how substantial it is.

Can it get even better? Of course. We all like free stuff. :)
 
biometrics said:
Yet I can buy Cell C fixed LTE at R845 for 200 GB = R4.23/GB
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Not an arrogant statement at all but if you find another provider's product more suited to you, you should buy it. That's what the free market is all about.

And it shows competition is alive and well, which is always good.
 
johnjm said:
As an accountant I think the fact that they cannot recognize all the revenue within the expire date is the real reAson they are not doing it.
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There are indeed relevant accounting structures that influence it, yes.
 
jannievanzyl said:
Not an arrogant statement at all but if you find another provider's product more suited to you, you should buy it. That's what the free market is all about.

And it shows competition is alive and well, which is always good.
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Indeed. Was a 20 year VC customer and left nearly two years ago. Couldn't be happier with the innovation of FNB which VC lacks.
 
jannievanzyl said:
Exactly, it's a commercial construct. Would you prefer lower prices and a shorter rollover or higher prices and a longer rollover?

It really is that simple.
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No, it isn't. There is a third alternative which you conveniently forget - lower margins. How about a same (or lower) price with a longer rollover?
 
ArtyLoop said:
The fact that an ex-CEO here says milk doesn't expire says it all my friends... these people who run (or used to run) a cellphone cartel are so disconnected from reality its a laughable joke. That's what money and power does to the brain of Homo Sapiens- scary stuff!

I am happy to note that a lot of the stuff in this thread has stuck. Does that mean MyBB is going soft on censorship? Going to keep an eye on this...
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Well I guess technically you can still use it 3 years after it expires...

ArtyLoop said:
Like I said before, if a cellphone network could, they'd even bill you for every CPU cycle used in their switch to carry your call. And for the air used to carry your call. That post from JvZ yesterday said it all... and I can assure you Mr Joosub is even craftier than he was, at fleecement.

That's why I stick with prepaid, on the devil I know- Telkom mobile. Never again will any cartel catch me with a contract. Never ever again, not in this lifetime or the next.
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Well MTN actually tried that by billing for backhaul data used in keeping an LTE connection active.

jannievanzyl said:
Buyig a six-pack is not a service. It's a product. The fact that you take it home and keep it there should tell you that.
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Services are products as well. What you mean to say is it's not physical but that's besides the point as has been pointed out. Electricity is nonphysical as well and it doesn't expire and Makro has the means to charge me for not using enough but they don't because it would be bad business and illegal. The only reason the telcos have been doing this with unused data is because it's been allowed.

jannievanzyl said:
Actually all consumer-focussed ISPs around the world made the switch fixed and mobile.
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Actually it's the opposite, mobile continually moves towards uncapped. A few fixed ISPs tried with usage based but they were quickly given the boot.

jannievanzyl said:
Then please show it to us. Sommer a quick photo of the last 1GB of data you bought.

Reality is, it's a service with a cap. And that is what confuse people. I understand it's complex for the average consumer (I also don't like it) but I would've thought MyBB reader would understand the effect of converting a bit/s service into c/MB.
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No the reality is it's a product with a cap and a time limit. It's that which confuses people and it's confusion which telcos have been relying on since forever to fleece customers. Name us any other usage based products besides telecoms which expires.
 
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