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Cape Town - South Africans generally agree that they pay too much for mobile services, despite the current price war between the big players in the country.
While global player Orange has publically denied that it intends to buy a local mobile operator, Fin24 takes a look at the pros and cons at what the presence of the company in the operator space might mean for South Africans.
Pros:
- Orange is big - massive - and because of its operations in over 20 countries, it could offer South Africans deals on lower cost data and voice services across borders.
- Should Orange take over Cell C or MTN, it is likely that it will move to aggressively cut prices which could benefit consumers. The cash injection could also see a junior operator like Cell C become a force to challenge the dominance of Vodacom in SA.
- Whether Orange becomes a mobile operator in SA or not, it is likely to expand its Wi-Fi service. Despite the move toward higher speed LTE (Long Term Evolution), the lack of spectrum means that Wi-Fi will likely become the standard mobile data carrier.
Cons:
- A huge company can influence the market wherever it operates - and if it succeeds in dominating, there can be no guarantee that it won't use its monopoly to the detriment of consumers.
- Customer service can sometimes suffer when big companies conduct operations. In the UK, a number of Orange customers complained that the company was aggressive when pursuing customers and did so in error.
- If SA becomes part of a multinational's global strategy there is a risk that the local market may stagnate as firms practice market protectionist policies. Innovation could suffer and consumers may be denied popular mobile devices and services.
What are your thoughts on competition in the local industry? Let us know
- Follow Duncan on Twitter
While global player Orange has publically denied that it intends to buy a local mobile operator, Fin24 takes a look at the pros and cons at what the presence of the company in the operator space might mean for South Africans.
Pros:
- Orange is big - massive - and because of its operations in over 20 countries, it could offer South Africans deals on lower cost data and voice services across borders.
- Should Orange take over Cell C or MTN, it is likely that it will move to aggressively cut prices which could benefit consumers. The cash injection could also see a junior operator like Cell C become a force to challenge the dominance of Vodacom in SA.
- Whether Orange becomes a mobile operator in SA or not, it is likely to expand its Wi-Fi service. Despite the move toward higher speed LTE (Long Term Evolution), the lack of spectrum means that Wi-Fi will likely become the standard mobile data carrier.
Cons:
- A huge company can influence the market wherever it operates - and if it succeeds in dominating, there can be no guarantee that it won't use its monopoly to the detriment of consumers.
- Customer service can sometimes suffer when big companies conduct operations. In the UK, a number of Orange customers complained that the company was aggressive when pursuing customers and did so in error.
- If SA becomes part of a multinational's global strategy there is a risk that the local market may stagnate as firms practice market protectionist policies. Innovation could suffer and consumers may be denied popular mobile devices and services.
What are your thoughts on competition in the local industry? Let us know
- Follow Duncan on Twitter
