Tough competition between cell phone companies is resulting in cheaper rates for customers, writes Annie Mapoma
A PRICE war is raging between South Africa’s cellular phone giants, with both Vodacom and MTN planning cheaper rates and package deals.
MTN began the fight for consumers’ cash with price cuts planned for October; Vodacom swiftly followed suit, announcing new packages last week. From November, some Vodacom calls will cost less than Telkom calls, and others less than MTN.
From November, for example, Vodacom’s long distance calls, at R1,30 a minute, will undercut Telkom’s R1,66 rate for calls from Johannesburg to Cape Town and MTN’s new discount long-distance rate of R1,50.
MTN shows no indication of taking this blow lying down: chief executive John Beck says its rates might be cut further. “It’s tough competition, so we have to do something. Otherwise we lose.”
The cellular rivals are also offering a variety of package deals to entice customers. Ordinary consumers currently pay the same as business people but MTN plans to offer the individual a cheaper monthly subscription of R70 instead of the current R125.
This package — dubbed Call 70 — targets cellular users who receive a lot of calls and make more off-peak calls than peak. Call 70 users will pay a lower monthly rate, but double the price for calls made at peak times.
Vodacom’s answer to Call 70 is Familycall, pitched at a monthly subscription of R65. It works on the same principle — lower subscription rates but higher rates for calls made at peak times.
Vodacom has also come up with Frequentcall, offering cut rates of 99 cents a minute for standard and R1,30 for long distance calls for a higher monthly subscription of R175.
MTN, on the other hand, has introduced an option aimed at customers who conduct a lot of business in the evenings or on weekends. For an additional R20 a month, calls during off-peak hours cost half price.
MTN and Vodacom are also jostling for position in the area of voice mail. Vodacom will cut voice-mail retrievals from R1,10 to 60c, regardless of the time zone in which the call is made. MTN retrievals charges will be slightly lower: 50c, and 35c during off-peak hours.