Vodacom: Cellphone fees cut may disrupt SA economy

Vodacom CEO, you are _shameless_

The only way a cut in tariffs will "upset" the economy is that it may cause unprecedented usage on cheap cell phone charges.

Voda and MTN will use this to cut their taxes, and this will mean less in the fiscus, but it won't negatively affect the economy. If anything the effect will be positive.

South Africa's biggest cellphone operator Vodacom said on Tuesday a dramatic reduction of cellphone charges would be disruptive to the country's economy and communications sector.

If cutting prices is bad we must therefore increase prices of telkoms which are only 6 times higher than the UK also increase bank charges which are 5 times higher and cars and steel which are 50% more

We cannot disrupt the rip off economy with lowering prices

This sounds like such a nonsensical thing to say and the article provides no explanation about why Vodacom thinks the cut would be bad for the economy. I get the feeling that it could be a veiled threat of sorts. If they are made to cut interconnect rates, they'll be forced to make up the shortfall by increasing call tariffs or subscription costs. But this doesnt make business sense. Surely this would antagonise their client base?

"Vodacom: Cellphone fees cut may disrupt SA economy"

This is silly and an absolute nonsense, These guys have been disrupting the economy of our pockets for so long. These Vodacom clowns do not even let us into their bizarre secret of how will cutting down cellphone fees disrupt the economy.

We at Animal Farm-1209 are looking forward to the cutting down on cellphone fees and we feel it will pleasantly disrupt the economy of our pockets.

What a load of bullshit.


The fear is that,it will decrease the POCKET money of the rich through reduced dividends.Vodacom should know that the best form of competition is NOT through increases or decreases.The best way is diversifying and providing different products to maximise profits.


My fear is that Parliament might believe this from Vodacom because it is full of people that are not educated and don't have a graft of economics.There is also a lot of ANC top hats that have shares in Vodacom and will make sure that their dividends are not reduced.

The ANC said a lot about caring for the common people,let's see them show it.


The Vodacom management should be ashamed of themselves.Their predatory instincts are not good for the country.

They are worry that they will not get so many millions compare to all the money they had got from us in the last years.I say you got enough from us,give us some air time back.You all cell phone companies are to greedy,we need the money more than you do.

Round objects - and they bounce

I agree with Chilli on the notion that there will be mo pple using their 4nes becoz of the lower charges...but then again the network operators are actually afarid of their total takings being reduced given the fact that there has been a gradual decreases in the numba of pple opening contracts.Vodacom does not inform us on how exactly it will affect the economy especially in the light of the fact that our call charges are rated highly expensive in the world..they shud come 2 the party n reduce the costs...

Interesting...maybe it might force them (& MTN who are now as bad if not worse) to focus on a concept that is quaintly known as service & delivery ? provide your customer with consistant real value and their margins will be secured - marketing 101 boet

Vodacom we gonna go ahead with the cut-off and if this does not disrupt the economy u will resign right?

Well spoken Vodacom!It's like the banks - finance charges must keep up escalating to prop the economy up. If all these don't happen, we shall become a Banana republic!
But what is startling is that "Chief Executives" keep on raking in millions in bonuses so that the country should move forward. Without them we are doomed...
Vodacom beware, my data contract with you might come to an abrupt end - I have already joined Neotel.

this government is f**cking us around..the purpose of this is to shift attention from the real problem: ESKOM. here we have people wanting to increase electricity by 138% over the next 3 years, yet the government says nothing..WHY? because they are getting money to buy luxury cars from ESKOM and to pay their friends huge salaries!! all this is happening now because government does no longer have a significant stake@VODACOM!!! Leave cellphone prices alone!! many of us dont care about cellphones!! How are we going to pay for electricity?

Well isn’t that just the best news we have had all year. For if a cut in cell’phone charges will be detrimental to the economy then just think what wonders will be done for the economy by the 45% p.a. increases that we heard about this morning for Eskom.

Reading this made me sit up and rub my eyes in amazement.

Could it be that Vodacom have engaged someone from the ANCYL to prepare their submission?

Or is it simply the age old story of every single cartel throughout all history: Actually believing that their particular price maintenance policy is in the general interest of the people and of the economy.

The concerns of some of the commenters that the government may well support Vodacom in this stupid reasoning are very real. After all, the national fuel price cartel is actively supported and backed by the government.

M&G Farm Komrades,

Animal Farm-1209 would like to sponsor its progressive Polokwane resolution titled "we must not only talk by act", this means, lets mobilise one another to boycott or switch from greedy mobile operator like Vodacom and join those progressive operators that are for the cutting of these exhorbitant fees or join the smallest mobile operator.

If Telkom does not want to come to the party, good, Neotel is here to party with us, lets all switch over to Neotel. We are the consumers, we should be proactive and not this passive, lets show these clowns that we are reclaiming our power back.

We can spread the gospel through Facebook, Twitter, Emails, Community Radio Stations, etc. These high flying clowns must be brought down to earth.

"Vodacom: Cellphone fees cut may disrupt SA economy"!

What crap is that? Amongst all the cell operators, VODACOM is the biggest thief! I recently sent 4 one line SMS's and it cost me a cool R12! The Govt. must not back down on this!

May I digress? I wondered what the significance of the 1209 was, so I asked my friend Google (who knows everything). Well according to an Amazon.com website, the Centennial Edition of George Orwell's book had 1209 customer reviews. I kid you not. Look for yourself.
http://www.amazon.com/Animal-Farm-Centennial-George-Orwell/dp/0452284244

Has it occoured to Animal Farm-1209 that "These high flying clowns" are the owners of the very media through which Facebook, Twitter etc. are distributed. The campagne would in fact be using and supporting Vodacom et al.

Pity the government didn't do this when they OWNED Vodacom. Clever one to do it now that you have sold it!!!!! This government does nothing for nothing. We pay less on cell calls and more on electricity. Now government go after Telkom and halve their broadband charges!!!

Simple, close ALL Vodacom contracts and Pre-pays and move to Virgin.I have a funny feeling that one of the remaining cell phone companies won't increase anything and rake in the customers, after which the usual bunch will try to entice consumers back with better deals. Hopefully, it will be too late.

Rob,

I know these guys own this media we are using. This time around, we will be using it for their destruction, there is always a price that we pay for waging the Revolution. Animal Farm-1209 feel, we can beat these clowns in their own game playing by their own absurd rules.

Animal Farm-1209 does not know any better way of advancing the Revolution by reaching as many Animals within the shortest time possible other than these methods. Maybe we should use more Radio Stations, Newspapers, Word of Mouth, etc.