MTN has clarified the rationale behind its recent smartphone Internet bundle deals that saw an instant din from consumers who felt the offering was “a joke”.
Last month, the cellphone operator introduced, in addition to its portfolio of mobile data products, four flat-rated smartphone data packages similar to that of BlackBerry Internet Services (BIS).
MTN teamed up with Apple, Nokia and Opera Mini to offer the deals, which range from R29 to R49 and carry a 75MB fair-use limit.
Consumer comebacks
While MTN said the deals, aimed at entry-level smartphone users, were primarily to “encourage optimal usage of the smartphone functionality”, consumers' rejoinders reflected misgiving as many questioned how the deals could compare to “uncapped” R59 per month BIS offerings that have proven popular in SA and other emerging markets in particular.
Addressing the media at an event yesterday, MTN said it is not trying to dominate the Internet services market, but rather offer its smartphone market customised packages that cater to their specific needs and data behaviour.
MTN revealed statistics to illustrate the range of entry-level smartphone users and how they could use their devices more optimally, given the right options and education. MTN's GM for brand and communication, Ryan Gould, says the company is trying to take the complexity out of using Internet on phones.
GM of consumer marketing at MTN, Mapula Bodibe, says, of the company's 10.9 million data users, 5.5 million access the Internet via 3G devices, while 3.6 million use smartphones. “But only 700 000 of this base use data bundles. That means that everyone else is paying the out-of-bundle rate and not getting the full value of Internet on their device.”
This, coupled with the smartphone and data explosion over the past year in particular, says Bodibe, prompted the data deals primed for specific users, based on the premise that the average customer uses 50MB of data per month.
“We are not trying to dominate the market. We are trying to optimise the customer's mobile Internet experience.”
Bodibe says the current mobile data environment is a challenge for all cellphone operators and admits the challenge will be a case of progress, not instant and inclusive satisfaction. “It will be a journey, but the win-win will be when customers are using the right product for their specific needs.”
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