8ta, unfair competition or excellent strategy

8ta, the newest mobile network operator in South Africa today announced that they will be bringing their “go big” data package to the market, with ridiculously low prices, or rather for the mobile space, and even can whip some ass on ADSL packages.

They will be offering two products :

  1. 10GB per month for R199, and
  2. 10GB + 10GB to use between midnight and 05h00 for R299 per month.

For these deals you must sign a 24 month contract, and excludes the 3G modem. 8ta does however have the 7.2Mbps modems available for R349 and the 21Mbps for R699.

Now my question is now. Obviously 8ta has an advantage over most other networks with the fact that it has the landline giant Telkoms‘ infrastructure to back these offerings, and also will allow them to take a wealth of new subscribers on, without having to worry about load on their systems.

Pricing might also now become an issue between the networks, as it would be quite easy for 8ta to provide products at these rates, because they can provide it to the consumer at a high profit, where the competition, when providing their packages at similar rates, will have very low profits margins. Do you think this might end up in the competition commission court ?

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