vodacoms response to mtns pricing?

[diabolus]

4) If you use 1Gb / month:

a) Vodacom: R599
b) MTN: R649

5) If you use 2Gb / month:

a) Vodacom: R1198
b) MTN: R649 + (R1.25 * 1024) = R1929

The 500MB one sounds right , very interesting to note that one [unless MTN comes up with a 200-700MB package].
The 2GB one sounds right too...also interesting.


The breakeven point as far as my calculations go is at 200MB. You will be paying exactly the same at MTN and Vodacom for 200MB of data using their appropriate bundles and rates. From there it only gets worse on the MTN system [do the 250MB calculation and see the major difference]. Reason is you will be going out-of-bundle all the way to 1GB on MTN [scary thought actually].

Then at 1GB+ this happens yet again, because Vodacom offers packages that's cheaper than the R1.25 p/MB rates after 1GB ...

So it turns out the lack of package options from MTN can actually override the lower out of bundle rates they offer. Quite a decoy i'd say

 

[Harley79]

http://www.itweb.co.za/sections/telecoms/2005/0504081206.asp?A=CEL&S=Cellular&O=E&CiRestriction=

So do you know if Vodacom will drop out of bundle (not that I am getting there yet)

 

[diabolus]

This is how much MTN's lower out-of-bundle rates actually means:

Data(MB)---------Vodacom-------MTN
10----------------R 20-----------R 10
50----------------R 95-----------R 90
100---------------R 160----------R 100
200---------------R 250----------R 250
300---------------R 300----------R 400
400---------------R 500----------R 550 (<-- switch to 1GB on MTN)
500---------------R 350----------R 700
600---------------R 550----------R 850 (<-- switch to 1GB on Vodacom)
750---------------R 850----------R 1,075
900---------------R 1,150--------R 1,300
1000--------------R 600----------R 500
2000--------------R 1,200--------R 1,750
3000--------------R 1,800--------R 3,000
10000-------------R 6,000--------R 11,750


Basically if you plan to use 400MB+ at MTN you better buy the 1GB package or you'll be wasting money. With Vodacom you can still go to about 600MB before the need for 1GB kicks in.

Vodacom is far cheaper above 1GB even with the R2 p/MB rate ...

 

[Harley79]

Vodacom is far cheaper above 1GB even with the R2 p/MB rate ...

Becareful how you term this statement, it had me confused for a while.

You pricing IS NOT based on the R2/MB out of bundle rate for > 1gig. You are basing your pricing on taking out an additional 1GB bundle, i.e. adding 2 x 1 gig bundles to get 2 gig. MTN at present do not allow this, so yes, your analysis IS CORRECT, but your statement is flawed. Technical I know, but make the correct statements. Cause someone doing maths saying R2/MB times 1 gig= R2048 + 600 = R2648 and will not see how you got to your figures.



Also bearing mind that if MTN allow multiple bundles, then they will be much cheaper

And lastly, Vodacoms 600 for 1 gig, includes the data card, MTN's R500 for 1 gig, excludes a data card. MTN's 1gig with datacard is R650

You need to compare apples with apples when making this type of post

 

[Harley79]

Oh yes, if I am correct I think alot of Vodashops are offering free datacard on Vodacom 500MB as well, so that makes it even cheaper than MTN 500MB

P.S. I do like the MTN structure re: out of bundle. Don't see why someone with 1gig 24 month contract should be paying the same price as pay as you go or any other smaller bundle. Yes I know you get your 1gig at R0.60 but out of bundle should also be cheaper.

 

[Diago]

I have to agree on the out of bundle rate for contract users. The same rule that applies to normal Talk packages. Ie. The bigger the package the cheaper the calls outside of your "free minute" should apply to the data packages.

 

[diabolus]

You are basing your pricing on taking out an additional 1GB bundle, i.e. adding 2 x 1 gig bundles to get 2 gig. MTN at present do not allow this, so yes, your analysis IS CORRECT, but your statement is flawed.

Eh, no i never used any multiple bundle scenarios. MTNs pricing is based on 1GB + R1.25 out-of-bundle rate [so 2GB = R500 + R1.25*1000 = R1750]. (Notice i'm using 1000 and not 1024, i like to keep things simple. I don't believe being accurate to the 9th decimal here is going to make a difference) Now on Vodacom's end you get 2GB,3GB,5GB,10GB bundles which are all way cheaper than R1.25 p/MB (in fact they're all at 60c p/MB , MTN doesn't even come close!). Now yes, MTN will be cheaper between 1.01GB and 1.99GB ..then guess what Vodacom's 2GB bundle kicks in. I can't imagine someone at Vodacom would go out-of bundle more than 500MB without considering buying the 2GB [or 3GB] bundle instead.

Calculation:

Vodacom 1.5GB = R600 + 500*R2 = R1600
MTN 1.5GB = R500 + 500*R1.25 = R1125

---> Vodacom offers the 2GB bundle at R1200 ....so you would be really dumb to actually go out of bundle to 1.5GB and pay R1600 ..so even this scenario MTN looses.

Vodacom 2.5GB = R1200 [this is the 2GB bundle] + 500*R2 = R2200
MTN 2.5GB = R500 [no 2GB bundle] + 1500*R1.25 = R2375

And i can go on, MTN will get more and more expensive everytime you hit a Vodacom Bundle [3GB,5GB and 10GB].

So what did i miss? Vodacom IS cheaper even with the R2 p/MB rates due to the bundles [you will not go out-of-bundle as much basically].

And lastly, Vodacoms 600 for 1 gig, includes the data card, MTN's R500 for 1 gig, excludes a data card. MTN's 1gig with datacard is R650

Yes,IF you sign a 24 month contract paying R600/R650 the entire 24 months.
That is not really the idea of the calculations [to compare contracts]. It's purely data cost in a single month. If i'm on a R135 contract (which gave me a cellphone) and i want a 1GB bundle i will have to pay R600 for it, and i'm -not- going to get any datacard with it.

Real Conclusion : MTN will -have- to offer bundle-combinations in a single month. But as i've said somewhere else, it's a support-nightmare waiting to happen, if your system can handle buying multiple bundles you might as well scrap 'bundling' completely and simply offer standard rates i.e.

0-999MB : R1.00 p/MB
1GB - 10GB : R0.50 p/MB
out-of-requested-amount : R1.50 p/MB

All you as customer then do is say "i want to use 750MB this month" and you will get billed R750 ...why make things so complicated? (of course i wouldn't ask for 750MB , i would get 1GB for R500 ]

 

[Harley79]

"Vodacom IS cheaper even with the R2 p/MB rates due to the bundles" would be a better statement than "Vodacom is far cheaper above 1GB even with the R2 p/MB rate "

due to the bundles being the differences. Someone not knowing about the bundles (or that you can add 2 x 1 gig bundles together) would not understand without the "due to the bundles" statement.

Aaah, I am also forgetting about the fact that Vodacom advertise > 1 gig bundles. I was thinking that you "needed to know that you can add 1gig bundles together" to make multiple gigs.

But there again, Vodashops not always aware of all the options are they

Anyway, whatever really. Kind late now for nonsense like this

 

[RichardG]

Vodacom are always expensive, on Contracts you name it. I wanted to upgrade my contract and all the phones i wanted were at normal rates. I go down the road to MTN, guess what I see the same phone i want for only R85 p/m..

I saw the Vodacom 3 G prices, Dam expensive, If you ask me. MTN will come out with better deals, we must just keep in mind, telkom owns 50 % of Vodacom, So they want to make money at all cost Vodacom.

I don't care about the Signal range but if you can find the Product Cheaper, i'd go with the cheaper product since its the same thing.

I hope this aint lam post

 

[quik]

I've got till October before i want/have to start using some kind of 3G sollution so let the price war begin. I hope MTN come out swinging with their 3G offering.. They'll have to if they want to reach that 1mil client target.

PS: V3G, how many people need to suggest dropping the out of bundle rate before Vadacom start listening. Tell them to stop ripping us off

 

[RichardG]

I've got till October before i want/have to start using some kind of 3G sollution so let the price war begin. I hope MTN come out swinging with their 3G offering.. They'll have to if they want to reach that 1mil client target.

PS: V3G, how many people need to suggest dropping the out of bundle rate before Vadacom start listening. Tell them to stop ripping us off

I'm sure if Cell C came out with one they would be the cheapest out of everyone . Yeah the wars will be begin. I used 3 G from a friend and no jokes to me 3 G is like just for sending e-mail and surf, I used more than 100 meg well i was connected surf websites only etc.

 

[Diago]

I'm sure if Cell C came out with one they would be the cheapest out of everyone . Yeah the wars will be begin. I used 3 G from a friend and no jokes to me 3 G is like just for sending e-mail and surf, I used more than 100 meg well i was connected surf websites only etc.

What sites where those, I'd love to see my usage for browsing and IRC more then a 200mb of my cap a month. I appreciate the speed and I just watch that I don't suddenly download a 700MB file accidently. I have only exceeded my cap once and I am a fairly heavy web and chat user. Downloading of updates etc including I only exceeded my cap last month because of a 250MB Magic the Gathering update.

 

[jpretorius]

someone suggested that the following quote from the "3G data tariffs" thread should rather be in this thread:

Unfortunately the competition in the form of MTN are busy self destructing. It seems that some genius there decided to simplify their pricing by not allowing the purchase of more than one bundle. Their original pricing made them cheaper than Vodacom across the board. The change makes them more expensive except for two small nodes around 100Mb and 1000Mb. They now go into their launch on Monday being not only slower, but also more expensive. Go and check out their thread on this forum.

What a pity. Some decent competition would have helped to keep Vodacom on their toes and maintain pressure for price reductions.

 

[kilps]

Now that I look at it - if MTN does offer the 10mb for R10 / month then I might get that - just for checking emails on the move - would make sence - but i would have to restrain myself from using it instead of dialup

 

[bosun]

Now that I look at it - if MTN does offer the 10mb for R10 / month then I might get that - just for checking emails on the move - would make sence - but i would have to restrain myself from using it instead of dialup

Then maybe get a blackberry? Unlmited e-mail transport, with a 10MB mailbox (keep it clean & tidy and it lasts for ever) Obviously this would only pay you if your e-mail is more than, say, 150MB traffic per month, but these days that is not difficult, with all the jokes and k&k that people send. 5MB per day is nothing. Speaking here about the Vodacom offering, as I cannot find details on the pricing for the MTN "yello" blackberry (Perhaps they should have paid RIM lots of money to be allowed to call it a yellowberry - bu then the yuppies and execs wouldn't buy it would they? - GOTTA have a BB)