/ 5 October 2005

Cell C enters pricing fray

While describing its rates as “some of the lowest”, Saudi-owned Cell C has entered the cellular-pricing fray by enhancing its “Friends and Family” product to provide its customers with the lowest tariffs in the market.

Cell C’s enhanced offering follows Vodacom’s and MTN’s recent moves in which they extended their off-peak hours by three hours. Furthermore, MTN will, from November 1, cut pre-paid and contract tariffs by 0,9% and 2,4% respectively.

The product provides Cell C customers with discounts on seven frequently dialled Cell C cellphone numbers. The product offers an off-peak rate of 75 cents per minute and R1,50 per minute between 7am and 8pm.

By contrast, Vodacom’s minimum tariff is R1,49 per minute — the rate pre-paid subscribers pay for calls made after hours — and MTN charges its pay-as-you-go users a minimum of R1,65 per minute for off-network-bound calls.

In another development, Cell C spokesperson Jonathan Newman said talks between the local operator and Richard Branson’s Virgin Mobile of the United Kingdom are “progressing well”, adding that an update on the pact is expected sometime this month.

At the presentation of the company’s quarterly earnings results earlier this year, Cell C CEO Talaat Laham said an announcement would be made in September.

The deal between the two parties will see Virgin branding the venture but using Cell C infrastructure. Virgin, which has international operations, does not own any base stations but is considered a mobile virtual network operator.

In South Africa, the UK group is expected to operate as an enhanced service provider. — I-Net Bridge