When a person goes out-of-bundle after depleting a data bundle, they are put on a high tariff.<\/li>\n<\/ul>\nHe said there is a legitimate public concern regarding high entry-level and out-of-bundle data prices.<\/p>\n
These prices are not commercially sensible for the industry, as their aim is for customers to use data, to increase data services, and to build the online industry.<\/p>\n
Expiring data<\/h3>\n
Commenting on the issue of expiring data, Shuter said it is the way the industry has evolved over the years.<\/p>\n
It started with voice-minutes which were bundled, and has moved to mobile data bundles – which were sold in the same fashion.<\/p>\n
In-bundle rates for voice minutes or megabytes of data are cheaper than standard rates, because you \u201cbuy in bulk\u201d.<\/p>\n
However, the lower bulk-pricing carries the disadvantage of expiring if you do not use it within a cerain time frame.<\/p>\n
\u201cThis is how the industry has evolved \u2013 you can either pay per MB or minute, or you can buy a bundle, and what is not used often does not roll over,\u201d said Shuter.<\/p>\n
\u201cSome people find it a practice which is not appealing, but it has also emerged over time because there was a demand for these bundled products.\u201d<\/p>\n
MTN\u2019s strategy<\/h3>\n
Shuter said MTN has 230 million subscribers globally, of which around 70 million are data subscribers.<\/p>\n
The challenge for MTN is to get the rest of its subscribers onto data services, which will require a different commercial approach.<\/p>\n
\u201cThese new data customers are going to be in rural areas, and they are going to buy smaller amounts of data,\u201d said Shuter.<\/p>\n
He said the data pricing methodology across MTN needs work and attention, which is why the company has embraced a \u201cdual data strategy\u201d.<\/p>\n
The strategy involves rolling out high-speed data networks and services to high-end consumers in urban areas first, and then bringing these services to rural areas.<\/p>\n
\u201cWe really need a good strategy \u2013 coverage, commercial models, and handsets \u2013 to bring the next 100 million customers into the data world.”<\/p>\n