No ad to show here.

Price war erupts among South Africa’s mobile players

A price war has erupted among South Africa’s mobile operators, as each seeks to increase its slice of the pie in a country where there are nearly as many active SIM cards as there are people.

The country’s third mobile operator Cell C recently slashed its data prices, halving them in some cases. It’s followed up this move with a new voice deal for its prepaid customers.

No ad to show here.

South Africa’s first-and-largest operator Vodacom today responded with what it calls the “Freedom 99” plan.

Like Cell C’s plan, called “99 Cents For Real”, Vodacom will charge prepaid users 99c a minute for calls between any of the country’s mobile networks

The key difference is that Cell C’s plan is based on per-second-billing from the moment the call is made, while Vodacom charges for the first minute and every half-minute thereafter.

Cell C CEO Alan Knott-Craig reckons the new deal gives his company’s “prepaid customers the best rate in the market, making it — in most cases — even cheaper to call from Cell C to other networks than it is for our competitors’ own prepaid customers to make on-net calls.”

The two companies have engaged in battle before, in the advertising and social media realms.

What makes this particular battle interesting is that the recently appointed Knott-Craig formerly had the head job at Vodacom.

No ad to show here.

More

News

Sign up to our newsletter to get the latest in digital insights. sign up

Welcome to Memeburn

Sign up to our newsletter to get the latest in digital insights.

Exit mobile version