Wireless broadband costs in South Africa have started trending down, thanks to Cell C

Cell C "Special"

Cell C “Special”

When Cell C, the David of mobile telecommunications in South Africa, launched a new brand identity in late 2010, a price war was started with the introduction of “broadband specials”,where 2 gig and 5 gig data bundles were offered at R149 and R299 per month on contract, or R1,499 for 24 gigs and R2,999 for 60 gigs on prepaid. Both categories of data bundles are valid for 12-months.

At first I was skeptical because this meant data cost per megabyte was reduced from 19 cents to 7 cents on the promoted bundles – a decline of more than 60%! However, the passing of time (3 months to be exact) assured me that Cell C’s deal was for real. Initially, these specials were going to expire at the end of December 2010, but this was subsequently replaced with the tag “while stocks last”. It has now been more than 6 months and there is still plenty of stock by the looks of things.

On the first of April 2011, Vodacom responded to Cell C’s promotion with a 2 gig data bundle special. This applies to contract packages only, and it is at the same price as Cell C.

MTN finally joined the front runners in late May and advertised their 2 gig data bundle special on contract. Their price matches Cell C’s and Vodacom’s.

The table below indicates similarities and differences  between the 3 mobile operators’ specials:

Comparative Table: Data Bundle Promotions

Comparative Table: Data Bundle Promotions

PLEASE NOTE: Vodacom’s 2 gig promotion includes a free premium email account with 5 GB and 5 aliases. I did not include this in the comparative table because there are plenty of free email services on offer, including Google, Webmail, Yahoo and Mailbox. The data bundle comparison does not consider issues to do with mobile network coverage. What’s great, Cell C will check this before they sell you a preferred data bundle.

The data carry-over feature (offered by both Vodacom and MTN) would be great for those who use minimal data that fluctuates from one month to the next, because they will not lose out on the data that was not fully utilized in one month. Vodacom appeals to the minority who can use the free 2 gigs a month, but  are able to do so at ungodly hours of between 00:00 and 5:00.

My verdict is that Cell C’s data bundle promotion is superior to Vodacom’s and MTN’s in two respects:

  1. It includes a 5 gig data bundle. This package is attractive to heavy users and it drives the price down to 6 cents per megabyte on a contract package.
  2. It includes a prepaid package for both 2 gig and 5 gig data bundles. Prepaid comes at a discount of 16% to contract over the 12-month period. This drives the cost per megabyte further down to 5 cents, and it beats keeping money in the bank at current interest rates.

Related post: Mobile telecom’s “Robin Hood” is at it again

Vodacom has indicated that the current promotion price for 2 gig data bundle cannot be maintained because it is below cost and is thus unsustainable. This could explain why only Cell C extended the promotional price point to the 5 gig data bundle and prepaid customers (one wonders why they can do it when others claim they can’t). However, I would like to take a bet that the three mobile operators will not revert back to the original price points of the promoted data bundles. Cell C deserves a special mention for taking the lead in this price war. It’s all 🙂 for consumers.

Also see a PC Bunny blog on mobile broadband cost comparisons  between South Africa and other selected countries.

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4 thoughts on “Wireless broadband costs in South Africa have started trending down, thanks to Cell C

  1. Cell C are fast becoming a true consumer champion. First, they broke ranks and supported the government in the drive to reduce mobile interconnection fees -http://www.ecntelecoms.com/index.php/lower-interconnect-fees/. And now, they are leading the price war with innovative pricing deals that are allowing prepaid customers to benefit as well. They certainly have my vote.

  2. My prediction was right about downward pressure on data costs in South Africa, despite the continuing denial by Vodacom and MTN that this is not sustainable (as one can expect).

    8.ta now offers the cheapest data bundle in the market @ 1.9c per MB! Check it out here http://www.8ta.com/plans/postpaid-data/i5promo/. The unfortunate downside with this “special” is that it caters only for contract deals, which will effectively exclude the large majority of the prepaid market where there is the greater potential. This is good news regardless.

    I have also checked briefly checked 8.ta’s coverage and it is not shabby. Worth considering for sure.

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