Vodacom's glass ceiling

34 mil cards between 44 mil ppl but how many ppl have more than one active line. I have 6. If its an average of 2 active lines (sim cards) per person then 17 mil ppl have access to network leaving 27 mil ppl they can still sign up (I know the other 2 networks can claim they have the bulk of the 27 mil ppl left signed up) but start dropping prices and become competitve here. Running out of ppl to sell new products to doesnt nessesarily mean a drop in profit.
 
Gunny said:
34 mil cards between 44 mil ppl but how many ppl have more than one active line. I have 6. If its an average of 2 active lines (sim cards) per person then 17 mil ppl have access to network leaving 27 mil ppl they can still sign up (I know the other 2 networks can claim they have the bulk of the 27 mil ppl left signed up) but start dropping prices and become competitve here. Running out of ppl to sell new products to doesnt nessesarily mean a drop in profit.
I have to seriously doubt the average person living below the poverty line has two or more cards. They can barely afford one phone and one sim card and its doubtful they can even afford airtime.
 
bwana v.11 said:
I have to seriously doubt the average person living below the poverty line has two or more cards. They can barely afford one phone and one sim card and its doubtful they can even afford airtime.

BUT at R3.99 for a prepaid SIM with 10 free SMS's (and I have seen them at PnP now for R1.99), it is cheaper to buy a new SIM than top up an old one.
 
Moederloos said:
BUT at R3.99 for a prepaid SIM with 10 free SMS's (and I have seen them at PnP now for R1.99), it is cheaper to buy a new SIM than top up an old one.
My bad - I should have quoted him directly - 2 or more active sim cards.
 
Broadband

One area where growth may come from locally in by offering new services, in the hope that current customers will spend more.

Dear Mr Knott-Craig

There's this new thing out there called "broadband" which people overseas have gone quite wild for. You access this "broadband" through a "computer", which can cost as little as R600 ( http://hardware.slashdot.org/hardware/06/05/24/1210225.shtml ). Apparently, this "broadband" makes telecoms companies loads of stuff that we like to call "money". This "broadband" becomes massively popular when it reaches the pricing level of regular telecommunications costs and has very significant social, political and economic benefits. If you price it right, people won't even have to spend more as they'll migrate from their existing dial up to your service.

I hear that Vodacom have a licence to offer "broadband" and are half owned by the company that controls most of the internet backbone in South Africa. Maybe, just maybe, IF YOU CUT YOUR GODDAMN PRICES YOU COULD TRIGGER A SURGE IN BROADBAND UPTAKE IN THIS COUNTRY AND MAKE A F***ING KILLING..

We hope that you choke.

Kifoth.
 
Hope their growth move into the negative once number portability becomes a reality. Another proudly ‘ripping you off’ SA company.
 
Bwana its not that much of a stretch is it ? plenty ppl have 3 active sims 1 for bussiness 1 for private and 1 for data. Ok maybe the average is 1.5 sim cards per person. But I`m trying to illustrate a point. Having 34 million cards out there doesnt mean 34 million ppl are subscribed to the network get my drift. Start competing to try win over subscribers from other networks buy dropping prices and better service.
 
Gunny said:
Bwana its not that much of a stretch is it ? plenty ppl have 3 active sims 1 for bussiness 1 for private and 1 for data. Ok maybe the average is 1.5 sim cards per person. But I`m trying to illustrate a point. Having 34 million cards out there doesnt mean 34 million ppl are subscribed to the network get my drift. Start competing to try win over subscribers from other networks buy dropping prices and better service.
I think that 34 million figure is going to take a major hit when SIM registrations come into effect and a more realistic figure is going to be forced out into the light.

Define your average person. Unfortunately the average person I see is struggling to buy bread for his family or clothe his children. He doesnt even know what data is. Sure the average middle class person might have several
SIM cards but that market is getting pretty saturated. The only way that vodacom is going to expand is by making the service affordable to the real average person.

Anyhow - vodacom built its own glass ceiling - hope they get a concussion.
 
The old growth problem. What happens when the world is saturated with these services? How can any company continue to grow its income indefinitely? Short of acting like the mafia, or Telkom?
 
Why exactly does a company need to keep growing its revenues anyway? What's wrong with 'just' continuing to make billions a year? Why is it a "problem"? It's this over-obsessive focus on "growth", as if anything less than growth is death, that pushes companies to start lowering the quality of their offerings as their markets become saturated in order to maintain certain growth levels for several more years. Companies aren't entitled to growth.
 
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