Cell C`s prepaid call rates lowest

By Damaria Senne, ITWeb senior journalist

Johannesburg, 21 Jun 2006

Cell C`s prepaid call rates for the 5pm to 8pm period are still the lowest compared to Vodacom and MTN, despite a recent price reduction by MTN.

Last week, MTN announced a reduction of up to 40% for all cellphone call costs, effective from 11 June. The mobile operator introduced a standard rate of R1.99 (including VAT) to all local networks for customers on its Per Second package. This is a drop from the previous rate of R3.20 per minute.

"The initial cut in price is part of MTN`s plan to continue reducing costs for our customers in the varied packages on offer and to offer our customers value for money," says Donovan Smith, consumer segment GM at MTN SA.

However, a comparison of the prepaid call rates of all the mobile networks during the 5pm to 8pm period shows Cell C still offers the cheapest rates for calls across the spectrum. Cell C`s on-network and to Telkom call rate is R1.40 a minute, while calls to other mobile networks are R1.60 a minute.

MTN`s standard rate of R1.99 a minute comes in second best for calls to other cellular networks and to Telkom.

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Forcing a trend

"The MTN price reductions may not live up to the hype, but it is most welcome in an industry where significant price reductions are not too easy to find," says Rudolph Muller, founder of MyADSL.

He says the price reductions may not only be a consumer-centric decision, but linked to alleviating network congestion over certain periods of the day.

Ray Webber, spokesman for the Communications Users Association of SA (CUASA), notes MTN`s price reductions for peak hours (7am to 5pm) are quite minimal.

CUASA hopes this trend of reducing call costs will continue with more substantial cost reductions in the months to come, particularly during peak times, he says.