We can cut mobile data prices in half if we received spectrum – Vodacom CEO

ToxicBunny

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We can cut mobile data prices in half if we received spectrum – Vodacom CEO

Vodacom CEO Shameel Joosub has stated that if the government and ICASA gave it more spectrum, it could cut mobile data prices in half.

Joosub was speaking at the 2018 MyBroadband Conference about mobile data prices in South Africa.
Ok Shameel,

How about this... you layout a pricing plan based on various levels of spectrum allocation, and you can have the spectrum on condition that you adhere to those pricing plans...
 

CataclysmZA

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A pity that we have no concept of net neutrality or regulations that limit how profitable these companies may be.
 

Sumen

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Can someone please give them the Spectrum, I want to see if they really going to cut data prices, also, they are becoming very annoying saying the same over and over again.
 

Emjay

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A pity that we have no concept of net neutrality or regulations that limit how profitable these companies may be.
Why would you want to cut away a company's profit motive?

How about we put in salary limitation of all employees? Are you willing to have your salary capped in order to control costs?
 

CataclysmZA

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Which is good, f your ideas to kill the dividend growth in my pension funds.
There's a downside to something like that, sure, but internet access through physical or radio mediums should really be classified as a utility these days. It's vital to the economy.

Why would you want to cut away a company's profit motive?
By giving them a cap on revenue, companies have the incentive to increase profits through cutting costs and becoming more efficient.

They can always earn more profit through cost reductions, finding cheaper suppliers, partnering up with other companies for an efficient supply chain, and so on. Revenue caps also seek to regulate that companies will no longer be able to accumulate money, and market share, through shady and risky tactics, and simply buy out competitors or absorb other companies as they see fit. For a utility, a revenue cap is a good idea because the government wants the best value for its citizens.

How about we put in salary limitation of all employees? Are you willing to have your salary capped in order to control costs?
Obviously, no-one wants that, which is why utilities typically have unions to negotiate these things on behalf of the employees, and laws attached to the revenue cap legislation may prevent companies from paying their employees less to increase their profit margins. Companies don't have to be scummy to make good money or deliver good value to shareholders.
 

Emjay

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There's a downside to something like that, sure, but internet access through physical or radio mediums should really be classified as a utility these days. It's vital to the economy.



By giving them a cap on revenue, companies have the incentive to increase profits through cutting costs and becoming more efficient.

They can always earn more profit through cost reductions, finding cheaper suppliers, partnering up with other companies for an efficient supply chain, and so on. Revenue caps also seek to regulate that companies will no longer be able to accumulate money, and market share, through shady and risky tactics, and simply buy out competitors or absorb other companies as they see fit. For a utility, a revenue cap is a good idea because the government wants the best value for its citizens.



Obviously, no-one wants that, which is why utilities typically have unions to negotiate these things on behalf of the employees, and laws attached to the revenue cap legislation may prevent companies from paying their employees less to increase their profit margins. Companies don't have to be scummy to make good money or deliver good value to shareholders.
Would you be happy with the government setting a limit on your earning potential?
 

CataclysmZA

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Would you be happy with the government setting a limit on your earning potential?
If there's legislation that regulates the revenue that utilities can earn, and if I'm a utility that provides a service to the public, that seems perfectly fine to me. If internet providers become classified as utilities, they can still be profitable.
 

qscwbt

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What you actually wanted to say is that you can double your gross profit.
 

DXL

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Ok Shameel,

How about this... you layout a pricing plan based on various levels of spectrum allocation, and you can have the spectrum on condition that you adhere to those pricing plans...
Yes i concur ! Good way to set the ball rolling.
 

supersunbird

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If there's legislation that regulates the revenue that utilities can earn, and if I'm a utility that provides a service to the public, that seems perfectly fine to me. If internet providers become classified as utilities, they can still be profitable.
Works for Eskom... oh wait!
 

H1TMANlol

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Whatever happened to the ICASA ruling for data to be carried over and not expire etc ??? Was someone paid off ?
 

Sl8er

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"We can cut mobile data prices in half if we received spectrum – Vodacom CEO"

Pay attention to what he says, folks:
Not, we will.

SlimeBallSaysWhat :rolleyes:
 

CataclysmZA

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Works for Eskom... oh wait!
Sadly, Eskom would be perfectly fine if the people in charge were held accountable for their poor judgement, corruption, and plain stupidity.

Whatever happened to the ICASA ruling for data to be carried over and not expire etc ??? Was someone paid off ?
It's generally a case of "BUT MUH BACK-END SYSTEMS!" and "BUT MUH CONTRACT FLEECING!"

We can look forward to these things being implemented the year after next. Or the next. Or the next.

Basically, a reskin of the DTT saga.
 

Swa

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50%? Can do more than that looking at the competition. Is it a promise? Didn't think so.
 

Dibbmic

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I can also pee and drink my urine simultaneously if given a long hosepipe.
 
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