Doing (it for) the poor

So, another diabolical scheme to make money off the poor has fallen flat on its face - perhaps simply because the poor don't have money.

We've seen it so many times before - low-cost handsets, low-cost PCs, low-cost Internet, free SIM cards, the list goes on.

The latest to backfire is MTN's low-cost PC/Internet bundle, which includes a PC, Microsoft Office package, high-speed data modem and 25MB per month for the first six months. An absolute steal at just R3 999 cash.

Strangely, the starving and destitute did not line up to get connected. Now, is it just me, or is it a no-brainer that few, if any, poor people have R3 999 cash lying around? Let's face it, some cojones can't be squeezed.

I'm beginning to think these initiatives are really in bad taste. Under the guise of connecting the next gazillion, or something, some struggling individual is offered the generous opportunity to fork out thousands to get a crappy PC and a whopping 25MB free, but only for the first six months. Can you spare it MTN?

Yes, I know the trend is to turn away from the saturated high-end market and target the homeless - but do companies really have to pretend that it is for the greater good of all?

Bring on the manure!

ITWeb also reported that some nice Indian fellows, visiting SA to conclude a joint venture, did some serious head-scratching about the skills shortage situation here.

Now these two guys, Vedant Jhaver and Ragu Raghuraman - president and COO, respectively, of Prodapt - could not understand that SA cannot quantify its ICT skills shortage or determine a way to measure it.

You better believe it boys! You are in the land where beetroot and African potatoes are the official, state-endorsed weapons against HIV/Aids. A land where government is adamant that crime is under control and considers the R400 million eNatis project a resounding success.

But, fear not. Reinforcements are on their way. Prodapt will send 150 Indian IT specialists to SA, as part of its deal with The IQ Business Group. Just in case there is a skills shortage.

That's provided Home Affairs has the skills or inclination to issue them with visas.

Yes, I know the trend is to turn away from the saturated high-end market and target the homeless - but do companies really have to pretend that it is for the greater good of all?

Martin Czernowalow, news editor, ITWeb

MTN was in the news again this week, this time getting slammed by industry for being difficult about concluding interconnect agreements with value-added network (VAN) service providers. Word is that everyone but MTN is playing nicely.

The interconnect agreements are critical to enabling the provision of full voice offerings over IP networks.

Most VANs have concluded interconnect agreements with Telkom, Vodacom and Cell C, while MTN is trying to delay interconnection through heavy-handed negotiation tactics.

This is effectively hampering VOIP uptake, despite its legalisation in February 2005.

Meanwhile, the company believes it is being difficult because it is acting in a "financially responsible manner" and in compliance with regulatory requirements. It says it has already concluded a number of interconnect agreements and is in talks to conclude more.

Maybe MTN is taking so long because it is trying to come up with an exorbitantly-priced VOIP deal for the poor...

I love the way local companies up their game in the face of competition. This week, MultiChoice admitted it is in for a beating as new pay-TV players are about to enter the local market.

So, what does the company do? It turns to technology. Ok, it doesn't sound all that bad. But what this really means is that MultiChoice is looking to offer its programming through a number of platforms. These include broadband, video-on-demand and digital video broadcasting via handheld.

At the same time, Linda Vermaas, CEO of MultiChoice's DTV Mobile, says the company does not expect the other platforms to replace traditional TV.

So what's the point? What happened to a good old-fashioned price war? An ITWeb journalist asked MultiChoice whether it was considering becoming more competitive through lower prices. The answer: "Good God, absolutely not!"

Of course not. That would cut into profits, affect executive bonuses and actually offer a value-for-money product. How queer would that be?

MultiChoice feels its two low-cost (sub-standard) bouquets - for R199 and R139 a month - are competitive enough. Pity no one told them these offerings are actually pretty crappy too. I mean, you get the cooking and fashion channels, among other B-grade choices. Fantastic!

Naturally, this is to get subscribers to avoid the cheap, nasty offerings and to go for the R400-plus a month full bouquet.

The broadcaster explains that dropping the prices of the crappy bouquets to below R100 a month would not be sustainable. But perhaps R400-plus could give it some room to manoeuvre... Only time will tell, but don't hold your breath.