MTN's low-cost PC/Internet bundle seems to have stalled, with the company saying there are a "few hiccups" and "activations are trickling in slowly".
MTN launched the package in February, after "a successful pilot" in December.
The bundle includes a PC, Microsoft Office package, high-speed data modem and 25MB per month for the first six months, priced at R3 999 cash. It is sold through Jet Mart stores nationwide.
While MTN PR and internal communication manager Ntombi Mhangwani would not provide six-month sales figures, she says uptake is slow. "This is because we had in-store promoters that were supplied by Microsoft when we launched, but not anymore."
Mhangwani says Edcon is setting up an entertainment store, which will include the PC/Internet offering. She did not know when the store would open. ITWeb was unable to get comment from Edcon.
Unrealistic expectations
MyADSL founder Rudolph Muller says he is not particularly surprised by the poor performance of MTN's PC/Internet offering.
"I don't think it is realistic to expect the lower end of the market to pay around R4 000 cash for anything that is not an essential part of their day-to-day living," he says.
MTN said the PC/Internet bundle would encourage broadband adoption in the lower income market. The company targeted consumers within the living standard measure of three to six.
Muller says the bundle would be far more successful if MTN produced an offering similar to one introduced in the Indian market. This low-cost bundle consists of a broadband connection, 600MB of data and a full PC, and is priced at under R100 per month, on a 36-month contract.
World Wide Worx MD Arthur Goldstuck has also criticised the MTN bundle, saying it is a viable option for middle-income earners, but too expensive for the lower-range of the income group.
"The upfront costs of the offering have not been lowered to the extent to make it compelling for low-income people to buy it."
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