Twitter just went wild with news that MTN is going to launch “uncapped 3G broadband” come 1 June 2010, so I decided to digg deaper and bring you the facts.
MTN South Africa has just announced that they will be introducing “uncapped 3G broadband” from 1 June 2010. This may sound like brilliant news but lets look a little closer before getting excited. The “uncapped” 3G will come with strict fair-usage restrictions and at the end of the day is this new “uncapped 3G” service really as “uncapped” as it sounds?
MTN will launch two packages come 1 June 2010:
- R 749.00/ month – You get 3GB of 3G data, throttled down to 128kbit/s after using 3GB.
- R1999.00/month – You get 10GB of 3G data, throttled down to 128kbit/s after using 10GB.
Clearly real “uncapped” data at an affordable rate is still along way off in South Africa.
You can already purchase mobile 3G data from 0.19c/MB when purchasing a 2GB bundle, so 3GB of data is already R583.68 at the standard rate and you are then paying R165.32 for the remaining 128kb uncapped connection after you reach the 3GB cap. So looks like they should be announcing ‘uncapped 128kb connections’ with the purchase of our over priced bundles. You can btw already get 128kb wireless internet connections in South Africa for R299.00 per month which means the MTN offering is R133.68 cheaper per month so lets give them credit where it’s due, the new rate is cheaper than current market prices but they are forcing you to purchase and expensive 3GB bundle, which makes the deal less appealing to the poorer mass market.
The 10GB account also looks much better, however why would you want to pay for 10GB of expensive data. Why don’t they just launch a 128kb connection to market and drop the whole 3GB and 10GB bundle idea. On the 10GB account you are in theory only paying R53.40/month for the 128kb uncapped connection.
I sure hope MTN looks at bringing a ‘uncapped 128kb connection’ to market for under R60.00/month without the end user needing to purchase a 3GB or 10Gb bundle, now that would be revolutionary
It’s going to be interesting to see how Vodacom responds to the new MTN rates. Lets hope Vodacom reads this blog and takes the hint and brings a lower speed cheap connection for the mass market.