MTN, Vodacom charges up to 2 639% more for out-of-bundle data – report

JOHANNESBURG-  Reports are circulating that South Africa’s two top cellphone networks are charging up to 2 639% more for out-of-bundle data, Vodacom has said it is normal business practice to offer discounts to customers that make longer term commitments.

The government has been pushing for the mobile networks with the Independent Communications Authority Of South Africa (Icasa), that data must fall, as out-of-bundle data rates are much more expensive than in-bundle.

MyBroadband’s report revealed that data rates on both the Vodacom and MTN networks were much higher when users ran out of data bundles.

A user who has a contract with Vodacom with a 20GB package deal that costs R329, workouts to R0.02 per MB, but out-of-bundle the rate per MB was R0.44, 2 630% higher than an in-bundle rate.

MTN 25GB prepaid deal would cost R1250 equating to R0.05 per MB and out-of-bundle cost R0.99 per MB, 1 928% more expensive than in-bundle.

The prepaid price differs hugely, a prepaid deal for 2oGB on Vodacom would cost 204% higher, priced at R999 as opposed to the R329 on contract.

MTN’s prepaid deal vs contract, the price is hiked by 234%, 20GB on prepaid costing is R299 and 25GB deal on prepaid at R1 250.

Vodacom’s spokesperson responded to the report, “This as recurring revenues allow for more accurate forecasting upon which better-informed business decisions can be taken. As part of Vodacom’s pricing transformation journey, effective voice and data prices have declined by more than 40% over the past three years,”

He added, “This means that we can plan / provision network capacity with a greater degree of accuracy. As part of our pricing transformation strategy, Vodacom significantly reduced out-of-bundle prices in October last year and recognises that more needs to be done on this front.

“To encourage customers to remain in-bundle, Vodacom has introduced a variety of initiatives in recent times including auto allocate, safety bundles and smart notifications.”

Photo Credit – MyBroadband

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