In response to Vodacom`s rate cuts last week, MTN has highlighted reductions on certain call rates that it claims were announced first and offer better value.
"The battle for consumers` hearts and minds is determined by the value they receive across the spectrum of their needs," says MTN SA MD Maanda Manyatshe.
Manyatshe says MTN is committed to providing innovative mobile offerings that are led by customer needs, as opposed to merely copying competitors.
MTN says its new starter pack value promotion, launched last weekend, attracted over 100 000 new subscribers in two days.
It notes that its MTN WOW WOW promotion, launched a few weeks ago, offers "substantial consumer benefits" as part of a lower off-peak call rate package for prepaid customers.
Between 5pm and 9pm Monday to Friday, users receive a 50% rate cut off all MTN to MTN calls, 50% off MTN to Telkom calls, as well as 37% off all calls made to other networks. MTN also says it offers subscribers more than 50% discount for MTN to MTN SMSes and a discounted SMS rate to other networks.
To access the price reduction, existing users need to call 141 and follow the prompts to migrate their existing pay-as-you-go price plan to the new one for a R49 once-off fee. New users can purchase an MTN WOW WOW starter pack for R59, which also includes 10 free SMSes per month for 12 months, five free MMSes per month for 12 months, five free callbacks per day forever and R10 free airtime per six months.
Is it a coincidence?
The MTN rate cuts are another step in the right direction, says Ray Webber, spokesman for the Communications Users` Association of SA.
He commends MTN for providing a package that is not restricted to on-network calls, but provides discounts for calls to Telkom and other networks.
Webber does, however, note that the rate cut is not automatically granted to current customers, who pay R49 when migrating to the new price package.
He also wonders whether it`s a coincidence that Vodacom and MTN are instituting price cuts, when the Independent Communications Authority of SA is busy with the review of mobile charges.
Not responding in kind
Jonathan Newman, advisor to Cell C chairman and CEO Talaat Laham, says Cell C continues to offer the best value to subscribers and notes that the company offers "the lowest anytime, any destination, unconditional prepaid peak rate".
He also notes that the company`s friends and family plan offers the industry`s lowest anytime, any destination off-peak per second prepaid rate of 98c for the four most often used numbers.
"So rather than responding in kind, we believe that we already offer a good rate," he says.
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