Why be first?

HSDPA is all the rage. The two cellular giants have made their competitive intentions clear when it comes to rolling out new data technologies.

The question lining the corridor is why they are so interested in winning the rollout race when Internet related data income is such a low percentage of their total revenue.
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Yada, yada. What a laugh.

Competition in SA = Agreeing not to compete.

Hello, hello: I wonder why? Internet related data income is such a low percentage of their total revenue

Supposed to be intelligent people? Not.
 
Not when it comes to cellular data. I belief in the UK they still charge R55/mb.
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Mobile data is expensive in Europe - because they are recouping the multi-billions they spent on bidding for the spectrum in the first place - and because fixed lined broadband is so cheap - there is little takeup - but this will change - especially with the EU now looking into excessive roaming charges... these are set to change - and wheh they say they are going to do something they do - not like here - where all they ever do is talk and get fatter at meetings.
 
kilo39 said:
Mobile data is expensive in Europe - because they are recouping the multi-billions they spent on bidding for the spectrum in the first place - and because fixed lined broadband is so cheap - there is little takeup - but this will change - especially with the EU now looking into excessive roaming charges... these are set to change - and wheh they say they are going to do something they do - not like here - where all they ever do is talk and get fatter at meetings.
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I just had a quick look and data seems cheaper there - http://www.mybroadband.co.za/vb/showpost.php?p=486722&postcount=9 - the 2 uk ones I looked at were o2 (Unlimited Data - £75.00 (r800)) and Vodafone (Unlimited Data plan £45.00 (r480.00)).

I didnt look at other countries but the belief (that some people - not necessarily you of course - have) that SA's mobile data prices are cheaper seems some what outdated to me.
 
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I didnt look at other countries but the belief (that some people - not necessarily you of course - have) that SA's mobile data prices are cheaper seems some what outdated to me.
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SA mobile companies crow because they are cheaper than europe (?) - but it is only because the market is so skewed (recouping investment, slow takeup) - that gives the SA companies any edge - it is still way overpriced: those europe prices are still double or triple any landline connection.

PS. BT has various roaming options (as opposed to looking at Vodacom) - unknown pricing - but cheaper than Vodacom - as part of the landline package.
 
bwana: you didn't read the fine print for O2.
* The Data Max 1024 subscription package allows you unlimited use of O2's 3G/GPRS Mobile Data Services. Fair usage policy applies and average monthly usage is expected to be below 1024mb. O2 reserves the right to apply extra charges or to withdraw the Data Max 1024 service from any individual at any time in the case of suspected overuse or abuse of the service. Any charges introduced shall be binding and final between You and O2 and shall not be the subject of mediation or arbitration.
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It's essentially capped at 1024Mb.
 
Prometheus said:
bwana: you didn't read the fine print for O2.

It's essentially capped at 1024Mb.
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I got that but in my experience they tend to ignore it unless you go completely mental with it - and if you do then there is always another ISP. Also most people using this service overseas would also have a landline based service unlike here.

If you want to look outside of europe then there's the much cheaper options available in the states.

Unfortunately here in SA there is no need for them to compete and r499 per gb is ludicrous.
 
bwana v.9 said:
Unfortunately here in SA there is no need for them to compete and r499 per gb is ludicrous.
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There's always reason to compete. The price in the UK is still about R500 per Gb with competition. THAT is ludicrous!

R800 and R480 is still very expensive for that service. As you said most people have a landline with unlimited usage. So they don't have anything to fear by offering the service as "uncapped". If you were to get rid of your landline and use only the mobile service, you will most certainly get capped.

I'm sorry, but the situation is just not directly comparible to here in SA.
 
Prometheus said:
There's always reason to compete. The price in the UK is still about R500 per Gb with competition. THAT is ludicrous!

R800 and R480 is still very expensive for that service. As you said most people have a landline with unlimited usage. So they don't have anything to fear by offering the service as "uncapped". If you were to get rid of your landline and use only the mobile service, you will most certainly get capped.

I'm sorry, but the situation is just not directly comparible to here in SA.
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I didnt try to bring a UK comparison into the topic in the first place - you did.

I havent been able to see any FUP for the vodafone offering of unlimited data for £45 - maybe there is one and maybe there isnt - either way it is cheaper there and a smaller portion of average income.
 
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Ok, so technically I did.
Not when it comes to cellular data. I belief in the UK they still charge R55/mb.
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I wanted to make the point that there is competition in SA when it comes to the mobile marketplace. We seem to have drifted away from that all together now. If we want to see what things look like without competition we should look at roaming charges instead - exorbitant prices for no reason at all. Same with our local telecoms "industry". Both MTN and Vodacom has recently dropped their prices during low usage hours by about 50%. Cell-C has also had a reduction very recently in response. For someone to say that there isn't competition in the mobile space it seems very clear they haven't done their homework.
 
Prometheus said:
Ok, so technically I did.

I wanted to make the point that there is competition in SA when it comes to the mobile marketplace. We seem to have drifted away from that all together now. If we want to see what things look like without competition we should look at roaming charges instead - exorbitant prices for no reason at all. Same with our local telecoms "industry". Both MTN and Vodacom has recently dropped their prices during low usage hours by about 50%. Cell-C has also had a reduction very recently in response. For someone to say that there isn't competition in the mobile space it seems very clear they haven't done their homework.
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I thought we were concentrating on data?

That the 3 are dropping rates during low use time periods sort of says it all though doesnt it - the disparity between peak and off peak was too great. People would rather wait until the off peak period than make calls. Why not move off peak forward instead of creating this third tier?

Competition (in the absence of collusion) should lead to an across the board price reduction rather than niche price tiering or so called value added services like cellc's plan to give you sms'es for making calls. Virgin's entry into the market with promises not to compete on price but quality of service is clearly indicative of the market as a whole - why rock the boat?

Regardless - Telkom is a 50% owner of vodacom and at a guess 100% supplier of their bandwidth (though I'd love to be corrected on that). Why pay more than double for the same amount of bandwidth? You're still feeding the beast. :)
 
bwana v.9 said:
I thought we were concentrating on data?

That the 3 are dropping rates during low use time periods sort of says it all though doesnt it - the disparity between peak and off peak was too great. People would rather wait until the off peak period than make calls. Why not move off peak forward instead of creating this third tier?
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The article is about new technologies and the adoption of new business models not just about data. Creating "this third tier" actually gives us a greater reduction in call rates than what would be the case if they moved off-peak forward. On your last comment however, I can only say: I am not feeding the beast.
 
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