The scramble for festive season spending has begun, with SA's cellphone operators introducing strategic offerings to lure new subscribers and tempt existing customers to spend more.
The beginning of this month saw the introduction of uncapped data packages from MTN, with the unveiling of an uncapped and unlimited data promotion. This allows customers to navigate on the MTN network at theoretical peak HSPA speeds. The promotion will run for four months, until 31 January.
Serame Taukobong, MTN SA's chief marketing officer, says the promotion is a response to the increasing numbers of customers taking up the latest smartphones, tablet PCs, wireless routers and laptop deals. “There is an increased data appetite that comes with the usage of these devices.”
The unlimited Internet deal will be applicable to the MTN Uncapped Lite and MTN Uncapped Pro packages, which come with a free MTN Sh@reLink WiFi router, or a MTN F@stlink USB modem, from R289 per month.
Cell C introduced its 99c all-day prepaid rate on 18 September. The promotion is for all new prepaid customers and allows them to pay a flat rate of 99c per minute on Cell C to Cell C calls. The rate is standard on all new prepaid packages.
Simon Camerer, Cell C's executive head of marketing, says this offering was introduced to facilitate its subscribers' control over spending during a period that is synonymous with hefty financial obligations.
Earlier this week, Virgin Mobile initiated its festive season “Double Your Airtime” promotion for new prepaid customers. Following the purchase of a Virgin Mobile SIM, customers will receive double the airtime value of their first recharge for free. The deal is valid for any of the operator's 10 airtime vouchers, which range from R10 to R500. The promotion applies to the first recharge only and is limited to five SIM cards per RICAed customer identity number.
SA's largest cellphone provider, Vodacom, has yet to introduce its festive season campaign, says spokesperson Richard Boorman. “We haven't officially launched anything yet and the details of upcoming festive season promotions are under wraps for now, but will be made public soon.”
The newest addition to SA's cellular sector, 8ta, did not respond by the time of publication.
World Wide Worx MD Arthur Goldstuck says there are a number of reasons for cellphone providers employing slightly more aggressive marketing strategies with the start of the holiday season.
“An interesting phenomenon in the cellphone industry is the huge drop in traffic going into the festive season and how it spikes at Christmas and New Year. The networks would ideally like a more even spread of usage.
“Heavy under-utilisation and strong spikes for brief periods of time cost these companies and they need to find a way whereby they don't have to provision their networks to scale up so dramatically for short intervals.
“Secondly, people are always on the lookout for deals at this time of year and the more marketing the cellphone companies can distribute, the more they can tap into the Christmas spending spree.”
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