Most people in SA spend far more than they should on costly cellphone contracts that generally don't suit their needs.
So says Antony Seeff, CEO of Tariffic, commenting on the findings of the Tariffic Perfect Package Tracker, a report published every quarter on the changes in the South African cellular market.
According to Seeff, the South African cellular market is incredibly complex. He points out that between Vodacom, Cell C, MTN and Telkom, there are over 10 000 different combinations of cellphone contracts and add-on bundles, and it's almost impossible for ordinary South African cellphone users to choose the contracts and bundles that actually suit their needs or their pockets.
"We encourage consumers to carefully think about whether their choice of contact is right for them based on their choice of networks, their choice of phone, and their actual behaviour," says Seeff.
In this quarter, Tariffic's Perfect Package Tracker focused on the best deals for people looking for a contract that comes with a specific phone in mind. The report uses the examples of five individuals, each with their own unique usage patterns.
According to the report, MTN's My MTNChoice packages were listed as the 'Tariffic Pick' twice while Cell C's Pinnacle packages also appeared on two occasions. Telkom appears in the 'Tariffic Pick' once.
This is Tariffic's fifth Perfect Package Tracker since Q1 2015 and it's designed to measure the real effects price and package changes in SA's postpaid cellular market.
However, the report does not include 36-month contract deals and only considers deals from the four major network operators in the country.
Tariffic performs this analysis by using its software to match cellphone users with the cheapest tariff plans and bundles, according to their exact behaviour.
Seeff notes the company's optimisations are performed using proprietary software, which analyses cellphone bills. Tariffic is able to look at a person's current monthly spend along with exactly how that person uses their phone, in order to calculate what their spend would look like on each network, with the optimal contract or package and bundle combination, he explains.
According to Seeff, the network operators always provide some level of handset subsidy which does help reduce the effective cost of the phone to an extent.
"This quantum of this subsidy varies based on the network, the phone, and the contract. The handset subsidy is more substantial for the high-end, more expensive packages, which is where users will ultimately 'pay' less for their handsets through the contract. If you're a low-end user, we'd suggest getting the package that is right for you and either buying a phone cash or financing it through your contract, depending on your cash-flow considerations."
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