{"id":28676,"date":"2011-07-12T16:01:25","date_gmt":"2011-07-12T14:01:25","guid":{"rendered":"http:\/\/mybroadband.co.za\/news\/?p=28676"},"modified":"2011-07-12T16:04:15","modified_gmt":"2011-07-12T14:04:15","slug":"boosting-broadband-numbers-through-pricing","status":"publish","type":"post","link":"https:\/\/mybroadband.co.za\/news\/broadband\/28676-boosting-broadband-numbers-through-pricing.html","title":{"rendered":"Boosting broadband numbers through pricing"},"content":{"rendered":"<p>As demand for data services in the country is growing, competition amongst broadband providers has intensified, which is good for the consumer as prices are being reduced.<\/p>\n<p>In recent weeks internet facilitators have slashed the prices on broadband offerings &#8211; some quite aggressively.<\/p>\n<p><a href=\"http:\/\/mybroadband.co.za\/vb\/showthread.php\/227037-Telkom\">Telkom<\/a> decreased its Faster DLS monthly rental fee by 11.3%, its mobile network <a href=\"http:\/\/mybroadband.co.za\/vb\/showthread.php\/276092-8ta\">8-ta<\/a> shook the market with the introduction of the cheapest data offering on the country &#8211; 10GB of data a month for R199 offer \u2013and <a href=\"http:\/\/mybroadband.co.za\/vb\/showthread.php\/226943-MTN\">MTN<\/a> announced that it was dropping uncapped broadband rates on two of its packages.<\/p>\n<p>With South Africa having one of the highest internet costs in the world, it&#8217;s not surprising that the price of internet connectivity is slowly falling to a favourable rate, says Joel Bloomer, head of research and a director at First Avenue Investment Management.<\/p>\n<p>&#8220;Data costs in South Africa versus that in other countries are still very high\u2026South Africa is still catching up with development markets, hence the telecoms companies have begun to focus their strategy on data growth.&#8221;<\/p>\n<p>With the variety of options that consumers have when it comes to data packages, some might wonder if <a href=\"http:\/\/mybroadband.co.za\/vb\/showthread.php\/227063-Vodacom\">Vodacom<\/a> will announce a drop in broadband tariffs.<\/p>\n<p>&#8220;Well, I can&#8217;t pre-empt a price cut or new offering, but Vodacom has consistently brought down prices. We will continue to work to focus on finding ways for customer to save,&#8221; said the operator&#8217;s executive head of media relations, <a href=\"http:\/\/mybroadband.co.za\/vb\/showthread.php\/244557-Richard-Boorman\">Richard Boorman<\/a>.<\/p>\n<p>Whilst <a href=\"http:\/\/mybroadband.co.za\/vb\/showthread.php\/213919-Cell-C\">Cell C<\/a> and Vodacom have yet to announce any new data offerings to stir up the market, Bloomer believes that of the mobile operators, Vodacom and MTN are still the market leaders in the data sphere as they have proven market share and infrastructure.<\/p>\n<p>&#8220;Cell C, which is not a public player, may have cash constraints that make it harder for it to build up its own network, whereas the others [MTN, Vodacom] can invest better in infrastructure,&#8221; said Bloomer.<\/p>\n<p>Vodacom and MTN littered the country with their towers to allow for efficient network coverage, with Cell C to too far behind, but still roaming on several of Vodacom&#8217;s connectivity channels.<\/p>\n<p>Telkom&#8217;s 8-ta is the only mobile operator that has yet to switch on its independent network \u2013 which is only available in certain areas of the country, for data purposes, as most of the operator&#8217;s traffic piggy-back&#8217;s on MTN&#8217;s network.<\/p>\n<p><strong>Can they handle it?<\/strong><\/p>\n<p>Bloomer believes that with all the initiatives by mobile operators to increase the number of their data subscribers, it will be interesting to see if the operators have the capacity to manage the increase in traffic on their networks.<\/p>\n<p>&#8220;The next year or two will reveal whether or not operators like Cell C and 8-ta have the capacity to handle the large volume of subscribers. Should the networks fail it will be a bad reflection on their brand -and a disappointment for its subscribers,&#8221; said Bloom.<\/p>\n<p>With most of the industry players having put their cards on the table, it will be interesting to see who makes the next move to drive internet prices even lower.<\/p>\n<p>Source: <a href=\"http:\/\/www.moneyweb.co.za\" target=\"_blank\"><strong>Moneyweb<\/strong><\/a><strong><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Pricing proves to be the weapon of choice for broadband providers. <\/p>\n","protected":false},"author":69,"featured_media":28678,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_sma_x_autopost_status":"idle","_sma_x_autopost_error":"","_sma_x_post_id":"","_sma_facebook_post_id":"","_sma_instagram_post_id":"","_sma_threads_post_id":"","_sma_x_attempts":0,"footnotes":""},"categories":[4],"tags":[473,44,355,2214,35,2212,42,1167,109,41],"class_list":["post-28676","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-broadband","tag-8ta","tag-broadband-2","tag-cell-c","tag-first-avenue-investment-management","tag-headline","tag-joel-bloomer","tag-mtn","tag-richard-boorman","tag-telkom","tag-vodacom"],"_links":{"self":[{"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/posts\/28676"}],"collection":[{"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/users\/69"}],"replies":[{"embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/comments?post=28676"}],"version-history":[{"count":1,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/posts\/28676\/revisions"}],"predecessor-version":[{"id":28862,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/posts\/28676\/revisions\/28862"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/media\/28678"}],"wp:attachment":[{"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/media?parent=28676"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/categories?post=28676"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/tags?post=28676"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}