21 December 2017
Buying data in bulk should give you a better price. It is the principle of economy of scale.
The problem the poor face is that they can only afford what cash they have in their pocket. Most times they can’t even afford that. So when they make a bundle purchase it is usually for the smallest package available because that’s all they can afford. It will get them through the immediate need. No one will lend to them and no one will give them contracts.
If you need a drink of water you can get it free from the municipality supply, or you can buy a 500 ml bottle for R5. If you buy in bulk you can get a 10 litre bottle of water for R25. The cost of buying small is four times more.
When it comes to pre-paid data, the cost of buying small is eight times more.
Either the poor are subsidizing the rich when it comes to mobile data or cell phone companies are exploiting the poor in South Africa.
If the cell phone companies were to apply the same economy of scale that bottled water companies do, then entry level pre-paid packages should give at least twice the amount of data.
Better still would be municipalities having spots where data can be accessed for free.
BY: Tim Genders – COO Project Isizwe