Rain has announced plans to start selling prepaid products to the masses after CEO Brandon Leigh confirmed that the platform has the necessary functionality to do so. The CEO told the world about Rain’s plan during a presentation during the Avior Corporate Summit.
South Africans love anything prepaid, and Rain knows it. By adding an extra line of products, the ISP plans to reach an entirely new market in the country. It seems the problem here isn’t whether Rain can sell prepaid products, but rather how to sell these services.
Blessing the Rains down in South Africa
Rain is concerned more about pricing than attracting new customers. It knows the market is there. Price too high and they risk scaring potential customers away. If it’s too low, profitability is impacted. It needs to hit that sweet spot, somewhere right in the middle. If it manages that, then Rain could steamroll other South African ISPs.
“I think with the economy where it’s at and the pain that consumers are going to experience, I think we aren’t naive that price points are extremely sensitive in the South African landscape,” Leigh explained.
Rain is still internally discussing potential pricing. Unfortunately, this doesn’t offer any hints for expected costs. But if the company is already at the point of announcing its plans, we can’t be far out from a launch. We hope.
If only Rain’s CEO had stopped talking after that. He believes that Rain is helping offset the challenges the economic pressures South Africa is currently facing. Leigh reckons the company’s products are helping families out, because the cost can be shared between a few people, rather than buying data separately for a higher cost.
“In a sense, home Internet is actually almost offsetting the economic challenges that the world’s under,” he said.
And he’s not entirely wrong. He’s essentially just explaining what WiFi is, and making out like Rain is the catalyst for the idea. So yes, Rain is helping offset the economic challenges in South Africa. But so is every other ISP around the country.