Dual-SIM card phones have entered the South African market, but network operators are not encouraging uptake.
This is according to market analysts who argue that dual-SIM card phones hold no benefit for operators.
Vodacom says it does not sell dual-SIM card phones while MTN says it offers theHuawei G6005 exclusively through Pep Stores.
According to Cell C, it has the Samsung C3222 Punch, though the device is also predominantly sold prepaid.
Virgin Mobile confirmed it plans to stock the Motorola EX109 and the Motorola Texto from the end of September.
Steven Ambrose, MD of Strategy Worx, explains that ensuring customers spend airtime on their SIM cards is key to all network operators' strategies because it increases average revenue per user.
He says the ability to use two SIMs from different networks in one device allows consumers to take advantage of the price differences between operators.
Ryan Smit, digital unit head at BMI-TechKnowledge, also points out that network operators make billions of rands off interconnect fees.
“[Operators] have no incentive to provide an easy alternative to consumers to avoid calling cross-network,” Smit explains. He adds that while more of these devices are likely to enter the local market, it is unlikely to be through operators.
“It is likely that these devices will proliferate through small independent retailers, at the low end of the market.”
According to Smit, dual-SIM card devices are popular in emerging markets because these consumers are more price-sensitive.
However, Ambrose points out that while these devices have a niche in any “high churn” market, such as SA, the advent of the RICA legislation has reduced churn. Moreover, the increased competition brought on by 8ta and Cell C has reduced the need to carry more than one SIM.
“As telecommunications become increasingly commoditised and process normalises across countries and operators, the need for dual-SIM phones will reduce. Dual-SIM devices will always have their place but will be a niche product in developed competitive markets,” says Ambrose.
He argues that the effect of these devices on local operators will be minimal as the devices will not become mainstream.
Smit points out that in the event of large-scale proliferation of dual-SIM card devices, operators would experience reductions in interconnect revenue.
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