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Cell C ups mobile pricing stakes

Bonnie Tubbs
By Bonnie Tubbs, ITWeb telecoms editor.
Johannesburg, 29 May 2012

Cell C has fired its fifth salvo in the mobile telecommunications “price war” with the introduction of a promotion on international calls, which sees costs cut by 91%, to 99c per minute on per second billing.

Effective as from tomorrow, the cellphone operator's latest promotion offers subscribers non-voice over IP call rates to five international destinations - UK, US, China, India and Pakistan - at the same cost as a local call, at any time from SA.

While the promotion is set to run until 31 August, recently appointed Cell C CEO Alan Knott-Craig says, “should customers be happy with the new international rates”, he will notify the Independent Communications Authority of SA of the operator's intention to make them fixed rates. “We will also add another 16 countries at 99c per minute with per second billing on 1 July.”

Referring to the 99c per minute rate as the company's “landmark”, Knott-Craig says the new voice rate is simple in that it applies to fixed and mobile networks in the various countries. “We are not using VOIP, but pure circuit switching - ensuring the best voice quality possible.”

The promotional rate is an effective 91% reduction in Cell C's call rates to the said international countries, which according to Cell C, represents a 72% saving when compared to the rates offered by its competitors.

The promotion is available to all Cell C customers - prepaid, hybrid, or postpaid - who will automatically be billed at the new rate. “No special or new SIM card is required.”

'We're not finished'

The latest promotion follows four others, all introduced during this month - in the enterprise, prepaid and spheres.

promotion set to run until 31 July saw prices of one prepaid and two postpaid packages reduced by up to half price.

Cell C's new prepaid voice product, “99 Cents For Real”, was unveiled just under two weeks ago and sees prepaid call rates dropping by more than 34%. The product cuts off-net and peak call tariffs to 99c per minute, with per second billing from the first second.

Knott-Craig has also hinted at further imminent tariff cuts, for contract customers. He recently told ITWeb the operator had a number of deals up its sleeve, but that they would not all be introduced at once.

“We are still not finished. The mobile consumer in SA has and will continue to benefit, and so will SA as a country.”

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