The one big blunder JTL made with Faiba 4G Internet
I have been using Faiba 4G Internet in the past one week and I must say, I so love the service. If you didn’t believe their crazy offers when they launched early this month then I can assure you that they are not kidding. Kshs 50 will for sure give you 1GB of data – but the caveat is that you must use the entire 1GB within 24 hours. The weekly data is probably more enticing as Kshs 300 will give you 8GB data. To make Faiba 4G Internet more interesting, their monthly data comes in the packages of Kshs 25GB, 40GB, 70GB, 120GB and 210GB for Kshs 1,000, Kshs 2,000, Kshs 3,000, Kshs 4,000 and Kshs 6000 respectively; and therein lies the blunder.
I am not sure if Faiba 4G consulted a few mathematicians and economists before arriving at the above monthly data offers, but one thing is true; they messed up big time when allocating 40GB for Kshs 2,000 and 70GB for Kshs 3,000. It is probably not a mistake, but a calculated move to defraud the mathematical lazy ones. Otherwise why would anyone spend Kshs 2,000 on 40GB data when the person can buy 25GB data twice (50GB total) for the same Kshs 2,000? That is, if you are not careful and you happen to purchase the 40GB data for Kshs 2,000, you would have lost a whopping 10GB data.
Normally this is what is supposed to happen, a lower data point should cost more per MB compared to higher data points. For example Safaricom typically sells 1GB data for Kshs 500 which works out to be Kshs 0.5/MB. When you move higher to Kshs 1,000, Safaricom will charge Kshs 0.33/MB, then Kshs 0.267/MB, and finally Kshs 0.25/MB for the 12GB data that goes for Kshs 3,000.
This logic however does not hold for Faiba 4G Internet as 25GB data is sold at the rate of Kshs 0.04/MB but 40GB data is sold for a higher rate of Kshs 0.05/MB. Compared to the pricing of 25GB, even the 70GB data is still expensive per MB as the 70GB data goes for Kshs 3,000, which comes to Kshs 0.043/MB. Faiba 4G Internet however makes some sense at the 120GB data level which sells for Kshs 0.033/MB. Lastly on the monthly data offer is the 210GB which goes for Kshs 6,000, meaning the data rate at this high level is at Kshs 0.028/MB.
Basically therefore what Faiba 4G Internet requires one to do is to perform calculations similar to what people do with MPESA. On MPESA, since sending Kshs 100 and below is free of charge, Kenyans have decided to be sending money in bits of Kshs 100 – and I hear some can do this for as high amounts as Kshs 5,000 – just so that they can save on the MPESA transaction fees associated with sending high amounts of money. In the case of Faiba 4G Internet, those willing to buy more data worth Kshs 2,000 are required to purchase the Kshs 1,000 data twice, whereas those willing to buy Kshs 3,000 worth of data are required to purchase the Kshs 1,000 data three times. However, purchasing Kshs 1,000 four times will be a loss for those willing to purchase the Kshs 4,000 data – and the same goes for those interested in purchasing the Kshs 6,000 210GB data.
The problem with the calculations does not end with the monthly data bundles. Also offered by Faiba 4G Internet is is the mobile plans, mainly targeting to give fixed amount of daily data, minutes and SMS. In the mobile data plan, we have Kshs 1,500 providing a customer with access to 1GB data every day, 250 minutes, and 200 SMSes. A customer who opts for the mobile plan worth Kshs 2,500 on the other hand gets 2GB daily data, 350 minutes, and 700 SMSes. The problem comes with the person who wants to pay Kshs 4,000 per month. For this customer, Faiba 4G will only provide 3GB data which is basically double what the person paying Kshs 1,500 is being given; which basically means that the person paying Kshs 4,000 for the Faiba 4G Internet mobile plan is paying Kshs 1,000 extra for data. Of course Faiba 4G may argue that the person paying Kshs 4,000 is getting extra value on airtime as he/she will enjoy 700 minutes, which is double what the person paying Kshs 2,500 is getting.
As a fan of Faiba 4G Internet, I would like Faiba 4G (JTL) to rethink their calculations and offer data at rates that are more reasonable, logical and consistent with the economics of scale (I buy more to spend less, not vice versa). In my thinking, the Faiba 4G Internet should be offered as follows:
Amount —– Data
Kshs 1,000 — 25GB
Kshs 2,000 — 55GB
Kshs 3,000 — 85GB
Kshs 4,000 — 120GB
Kshs 6,000 — 210GB
Other than the math and economic blunder, Faiba 4G has proven to be a product worth your money. The speeds are fine. Internet is always there. And I just love the product.