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Mobile network operators heed data price reduction call

Simnikiwe Mzekandaba
By Simnikiwe Mzekandaba, IT in government editor
Johannesburg, 05 Apr 2022

Mobile operator Cell C had the most affordable 500MB data bundle during the latter half of 2021.

This is based on figures from the Independent Communications Authority of South Africa’s (ICASA’s) prepaid tariff analysis report, which examined tariff notifications lodged with the authority for the period 1 July to 31 December 2021.

The Bi-annual Tariff Analysis Report is compiled by ICASA to provide consumers with an analysis of the prepaid tariffs charged by the different mobile operators.

For the period under review, ICASA says it received a total of 270 tariff notifications, which included 73 new promotions, 105 amendments, 26 extensions, 65 new products and one termination.

The regulator further highlights there were mainly five types of prepaid tariff plans on offer in the market during the period under review. These were standard prepaid data tariffs, promotional prepaid data tariffs, standard prepaid voice tariffs, standard prepaid integrated bundles, as well as promotional prepaid integrated bundles.

In terms of the mobile data services market, ICASA states that “salient” changes in the period under review were the amendments of the 30-day standard prepaid data bundles by all four major operators.

When looking at the 500MB data bundle, statistics show three of the four operators amended this specific offering.

Cell C replaced its 800MB data bundle, which it offered for R80, with a 500MB data bundle at R65. This switch-up made Cell C’s 500MB data bundle offering the “most affordable” among the four mobile network operators (MNOs).

Vodacom amended the price of its 500MB data bundle, reducing it by R10, or 12.7%, from R79 to R69, which can be translated to an in-bundle rate of R0.14 per MB.

MTN also revised the price of its 500MB data bundle, reducing it by R6, or 8%, from R75 to R69, according to the data.

This means Cell C, Vodacom and MTN charge relatively the same rate (R69) for 500MB.

Telkom made no amendment to its 500MB data bundle offering between the fourth quarter (Q4) of the 2020/21 financial year (FY) and Q4 of the 2021/22 FY period, notes ICASA.

“On average, the 30-day standard prepaid 500MB data bundle is priced at R68, based on the prices for this data bundle across the four MNOs,” says the ICASA report.

Data price changes for 500MB standard 30-day prepaid data bundles.
Data price changes for 500MB standard 30-day prepaid data bundles.

South Africans have, in the past, been vocal about the high cost to communicate. In 2016, citizens took to social media to express their frustrations with local mobile operators, resulting in the #DataMustFall movement receiving widespread media attention and attracting Parliament’s notice.

Furthermore, the Competition Commission (CompCom) data services market inquiry in December 2019 found the cost of data in SA was considerably higher than in many other countries. The CompCom recommended that telcos reduce data costs and instructed the leading operators − MTN and Vodacom − to cut their mobile data pricing by half.

ICASA found that for the popular 1GB bundle, all four MNOs revised their 30-day standard prepaid 1GB data bundle downwards for the period under review.

The largest price decrease in both absolute and percentage terms occurred on Telkom, with the 1GB data bundle price decreased by R20, or 20.2%, from R99 to R79, making it the most affordable 1GB prepaid data bundle among the four operators.

Vodacom and MTN reduced the prices of their 1GB data bundles, from R99 to R85.

Cell C also reduced its 1GB data bundle price from R95 to R85, reveals ICASA. “On average, the 30-day standard prepaid 1GB data bundle currently costs R83.50, based on the prices for this data bundle across the four MNOs.”

Data price changes for 1GB standard 30-day prepaid data bundles.
Data price changes for 1GB standard 30-day prepaid data bundles.

Turning to the 2GB data bundle price point, Vodacom’s price reduction moved from R159 to R149. This, says the report, resulted in an average price of R147 on the 30-day standard prepaid 2GB data bundle.

“On 29 March 2021, Vodacom reintroduced its 2GB data bundle, which was reported in the 2021/22 FY Q2 Bi-annual Tariff Analysis Report at the price of R159. The operator reduced the price of the 2GB data bundle in the period under review by R10, or 6.3%, to R149.

“MTN reduced the price of its 2GB data bundle by R40, or 21.2%, from R189 to R149, therefore with an in-bundle rate of R0.07 per MB,” states the report.

Cell C reduced its 2GB data bundle from R199 to R149, meaning a R0.05 per MB in-bundle rate.

Telkom’s 2GB data bundle remains the lowest among the four operators, at R139.

“On average, the 30-day standard prepaid 2GB data bundles currently cost R147.

“Telkom’s amendment entailed the price reduction of the 1GB data bundle by 20.2%, from R99 to R79, and the introduction of the 1.5GB data bundle at a price of R89.

“Vodacom reduced the price of its 2GB, 50GB and 100GB from R159, R1 499 and R2 399 to R149, R799 and R999, respectively. Vodacom also introduced the 4GB, 6GB and 15GB data bundles in its 30-day standard prepaid data bundle plan.

“Cell C’s amendment entailed the replacement of the 80MB, 150MB, 325MB and 800MB data bundles with the 100MB, 200MB, 350MB, 500MB, respectively. Cell C also introduced 4GB and 30GB data bundles at R249 and R699, respectively.

“Furthermore, Cell C reduced the prices of the 1GB, 1.5GB, 2GB, 3GB, 10GB and 20GB data bundles. For example, the 1GB prepaid 30-day standard data bundle had a 10.5% decrease in price from R95 to R85.”

Data price changes for 2GB standard 30-day prepaid data bundles
Data price changes for 2GB standard 30-day prepaid data bundles

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