Competition in the mobile sector is already heating up, as MTN responds to mobile newcomer 8ta's entry into market, with a re-introduction of the MTN Zone 100% Mahala Calls and SMSes promotion.
The deal allows for discounts of up to 100% for voice and call services at certain times of the day. The discount is dependent on how much traffic is being passed through a particular area on the company's network.
Essentially, calls in areas with lower traffic will be discounted. This means that calls at 4am could well be free, while calls at 7pm may be charged at the full rate.
While MTN says the discount will be available to customers during both peak and off-peak periods, it is unlikely its network will be quiet enough for a high discount during peak times.
However, Zone customers will receive a guaranteed discount for a block period during off-peak hours every day, as well as during weekends. “It allows for predictability, which MTN Zone customers have been asking for.”
The deal was first introduced late last year and ran for 100 days. This time, the offer is permanent and will not be limited to any timeframe. The company notes that MTN Zone will now also be available on its Top Up options.
Competitive competition
The MTN Zone comes as 8ta's prepaid offering becomes commercially available today. Analysts agree the newcomer will go far in ramping up competition in the market.
Frost & Sullivan analyst Spiwe Chireka says the mobile incumbents will seek to fiercely defend their market share against 8ta.
This statement comes as Telkom last week unveiled its mobile service, with promotional offerings that include giving subscribers free talk time to any network every time they receive calls from a mobile phone - one free second of airtime for every three seconds of call received. This benefit is available all day, every day.
Additionally, when users send five SMSes in a day, 8ta will give subscribers 50 free SMSes at no extra cost to use that same day.
Concerns have been raised about how long this promotion will run for and whether the company would abandon the deal post-launch.
“The 'send five SMSes per day and receive 50 free for that day promotion' is a component of the launch offer. The intention is to run promotions for approximately six months. 8ta is not going to end promotions at the end of six months,” explains the operator.
“The basic construct will remain but the values may change depending on customer behaviour and preferences. 8ta will also offer new promotions in the future, to ensure that our customers receive more value,” continues 8ta. Important to note, says the company, is that the base rate will remain as filed.
Chireka says consumers will be smiling as the cut-throat competition translates into savings.
“Operators must understand that they can no longer afford to drop the ball as consumers will now have three other options to choose from,” she concludes.
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Let the mobile wars begin
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