Time to migrate? Unlimited Data Bundles Ends..

Mobile operator, Safaricom, has announced plans to stop selling  unlimited data packages saying it is losing money on the pricing model.

The company blamed some data user of misusing the bundles by downloading too much, which also slows down lower consumption users.

Safaricom CEO, Bob Collymore said there are some users who have been downloading data sizes of up to 36 gigabytes a day. On out-of- bundle price this would cost about Sh23, 000 but on the unlimited they just have to pay Sh200. “On unlimited we are losing money, so I will say as I said for voice, I will not sell data at loss,” said Collymore while launching 42 Mega bytes per second speeds system on its 3G network.

Unlimited Throttling

Safaricom announced it has already started throttling on some of the existing bundles to control costs and improve surfing experience for all users. “I really do not think we should continue with the unlimited, everyone should pay for what they are using,” said Collymore adding the firm is working on a new pricing model to be unveiled in a few weeks.

Safaricom which has 79.45 per cent of the data market share (according to latest CCK statistics) draws the huge market from unlimited data bundle users on mobile platforms ( cell phones and modems).

This announcement to change pricing comes as its competitors revamp their unlimited offering in a bid to capture larger data subscriber numbers. Airtel Kenya, which recently launched its 3.75G network, is currently offering unlimited data bundles of Sh750 for a week or Sh2999 for a month.

Other Unlimited Competitor

Telkom Orange, also planning to introduce 42Mpbs, has unlimited internet for KSh 990 weekly and and Sh 2990 on monthly basis on its 3G modems. Safaricom offers a weekly package for Sh1000 and Sh3000 monthly. “In one year I can bet even our competitors will not be giving unlimited, it is not making sense to us (I) doubt it will to them,” Collymore said.

What are your thoughts? Are you looking for alternatives?