Why 4G should be affordable

Editor, High speed internet should be as affordable as electricity and water. You do not realize how important it can become in your life until you use it. You cannot understand its value until you incorporate it in your life as a tool for success and not just entertainment.

Friday, February 20, 2015

Editor,

High speed internet should be as affordable as electricity and water. You do not realize how important it can become in your life until you use it. You cannot understand its value until you incorporate it in your life as a tool for success and not just entertainment.

Please slash prices even more. I don’t see the reason why LTE should be more expensive than 3G.

Gluck

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LTE service providers should go back to their Economics 101 lessons. The lower the price, the greater the number of subscribers will take it up and eventually the greater their volume of sales and bottom lines.

The basic principle of this kind of commodifiable service business has just been proved by the growth in cross-border telephone volumes by multiple factors among the three Northern Corridor partner states of Kenya, Rwanda and Uganda with the elimination/reduction of roaming charges.

Yes, it is counterintuitive yet empirically proved: you grow revenue by slashing prices. This is because such a move helps expand your customer base.

Unless, of course, the providers are more interested in short-term returns than in developing the market for the long haul; that is the only way their current top-skimming pricing model would make sense.

Mwene Kalinda

Reactions to the story, "4G service provider slashes prices by almost 70%” (The New Times, February 13)