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Question of the Day: Have you ever been to an airshow?
Virgin Mobile states the facts
- Thread starter rpm
- Start date
Highflyer_GP
Honorary Master
Why don't they just cut this peak and off-peak comparison crap 
One cannot compare an apple with an orange FFS. People will move based on their needs. If they make most of their calls during off-peak hours then they can stay with their current provider. Virgin has it right, while their call rates may not be to everyone's taste, the concept of a flat rate fee is beneficial to consumers in the long run. It costs the provider the same amount regardless of whether the call is made during peak or off-peak. Call rates based on the time of day are simply a means of raking in more money, there's no justification whichever way you look at it.
One cannot compare an apple with an orange FFS. People will move based on their needs. If they make most of their calls during off-peak hours then they can stay with their current provider. Virgin has it right, while their call rates may not be to everyone's taste, the concept of a flat rate fee is beneficial to consumers in the long run. It costs the provider the same amount regardless of whether the call is made during peak or off-peak. Call rates based on the time of day are simply a means of raking in more money, there's no justification whichever way you look at it.
supersunbird
Honorary Master
Most of the market is prepaid, so that a very important segment and thats where Virgin Mobile is much more cost effective, except with sustained Vodacom to Vodacom Off Peak calls...
swordfish1
Expert Member
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although it seems that virgin will offer us some marginal benefits here and there, I don't think it is gonna get any close to international pricing and standards. They are here to exploit a new market not to give us freebies, so don't expect too much! What happened when cellc came to play? Not much! Just a lot of talking and adverts and the prices were fixed to more or less the same ...
supersunbird
Honorary Master
They cannot go cheaper than what Cell C is willing to give them, blame Cell C. Or blame VM for not having their own network. And if they cant have their own network blame whoevers responsible for that.
Highflyer_GP
Honorary Master
Interconnection fees at cost price. If ICASA pushes that through then there's hope yet. But then again knowing ICASA...
Sapphiron
Honorary Master
swordfish1 said:
We all know who to blame for that!
I worked out my phone bill in the past month. My bill is about R550 per month on my CelC businesschat. 95% of my calls are peak calls as I need to run a business. Most of my calls are shorter than 40sec. I can Save R200 a month by going for V100. That is excluding the rewards program money.
R200 a month is R2400 a year!!!.
Too bad I;m locked into a draconian contract for the next 14 months
Business users will flock to virgin, unless they drastically change their pricing
With Nashua Mobile you can download your statements in CSV format.
I applied VIRGIN's pricing structure to my REAL calls for the last 2 months.
Last month I would have saved 18% and the month before 16%.
This INCLUDES a Nokia N70 handset over 24 months.
There's comapring apples with apples for you.
I applied VIRGIN's pricing structure to my REAL calls for the last 2 months.
Last month I would have saved 18% and the month before 16%.
This INCLUDES a Nokia N70 handset over 24 months.
There's comapring apples with apples for you.
RoosTa
Expert Member
Then you obviously don't know how Virgin does business. In short, they piggy-back on other companies infrastructure with a very low profit margin. Sir Richard Branson's mission is to bring down prices around the WORLD. I have utmost respect for him because he is not a typical capatalist PIG.
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74466
Well-Known Member
No mention of data, and with our heavily inflated adsl prices, more and more users are going to mobile for web/email access, most users will not use more than 2-300MB a month, so why no mention of data in this or any other comparison article?
JUST ASKING
JUST ASKING
Moederloos
Honorary Master
swordfish1 said:
Sorry, but I tend to disagree.
If at any stage someone brings down pricing in any market segment (even if just by 1 cent), that is competition at work. The next guy has to better that, and so the downward trend begins.
The only way it can fail is is naive consumers feel the need for "brand loyalty". "Brand loyalty" only serves the companies exploiting the consumers.
Competition. Free Market.
Richard's billions....
The thing is that the differences are very small, and again, as with so many things, it basically comes down to personal preference. And about not being a capitalist pig, how do you think he became a billionaire? By giving freebies? He is an astute businessman with an eye for profit. He is an efficient capitalist who knows how to make minimal effort work out for maximum gain... Don't be so naive, he's not on your side! Ultimately his main goal is profit - do you think he would be doing it if he didn't make a profit?!
The thing is that the differences are very small, and again, as with so many things, it basically comes down to personal preference. And about not being a capitalist pig, how do you think he became a billionaire? By giving freebies? He is an astute businessman with an eye for profit. He is an efficient capitalist who knows how to make minimal effort work out for maximum gain... Don't be so naive, he's not on your side! Ultimately his main goal is profit - do you think he would be doing it if he didn't make a profit?!
RoosTa
Expert Member
Yes, he is a capitalist, but not a PIG.
But unlike the incumbents he's willing to accept a lower margin of profit.GaryP said:
Any reduction in cellphone costs - and for me its actually quite substantial - is fantastic news. Everything remaining equal, I'll take lower prices over higher any day.
Profit margin..
Do you really believe he makes a lower profit than others? I can bet you he doesn't, otherwise his business would have gone under years ago. And I will also bet you won't take lower prices over higher prices either, because you will also consider service delivery, etc in your decision making. For eg, if you take the lower price VM option but can't get good coverage, good service, etc, you would be willing to go elsewhere, pay a little more perhaps, but get better overall service. Am I right, or don't you care about these other things?
Do you really believe he makes a lower profit than others? I can bet you he doesn't, otherwise his business would have gone under years ago. And I will also bet you won't take lower prices over higher prices either, because you will also consider service delivery, etc in your decision making. For eg, if you take the lower price VM option but can't get good coverage, good service, etc, you would be willing to go elsewhere, pay a little more perhaps, but get better overall service. Am I right, or don't you care about these other things?
Moederloos
Honorary Master
BT6LW said:
good book - read it!
Anyways, there is no reason WHATOSEVER, that someone is not intitled to make a fair profit. And, VM is making a fair profit, if they can resell CellC at a lower price.
No one in their right mind would claim that RB is Mother Teresa or Gandhi - he IS out to make money and he DOES make money. That is what he gets from the deal. If I make him a few cents richer in the process, so be it - I save a few cents too.