Although SA is in the midst of a mobile price war, with historically high prices starting to fall significantly, the cost of communication is still too high.
This is according to Richard van Rensburg - deputy CEO of one of SA's largest retail chains, Pick n Pay - who says the group wants to help bring mobile costs down.
Speaking at a media event at which MTN and Pick n Pay announced a new SIM partnership yesterday, Van Rensburg spoke about the ongoing debate around SA's mobile monopoly and the need for competition to drive down call and data prices. "We feel airtime is still too expensive and we have been working with MTN to drop the cost, just as we worked to get cheaper bread in the past.
"We all understand that airtime has become a commodity like bread and milk, and cheaper airtime is crucial to growing the economy. If airtime was cheaper, more people would have access to the digital world and that would mean a better economy."
To that end, he says, Pick n Pay's co-branded SIM - available at Pick n Pay and subsidiary Boxer stores - that offers customers 10% additional airtime when they top up at its stores, will be the first of a range of "airtime rewards" to come from the group.
He says, while Pick n Pay abandoned the idea of launching a mobile virtual network operator (MVNO) in favour of partnering with MTN, the co-branded starter pack represents a desire from the retail group to enter the market. "We are building a mobile relationship with our customers."
Van Rensburg also alluded to an upcoming move to introduce free WiFi at Pick n Pay stores. "Without giving too much away," he said, "data is important for us. We are currently conducting a pilot whereby we give free WiFi to our customers and the take-up we have seen is phenomenal."
Minimal impact
However - while Pick n Pay's introductory move to contribute to cheaper telecoms may benefit a percentage of consumers - it is unlikely to make any ripples in the mobile price war, say analysts.
Africa Analysis analyst Dobek Pater says there are apparently some two million customers who use MTN's Mobile Money service at Pick n Pay. "If a similar or even somewhat greater amount of customers buys airtime from Pick n Pay, that will represent less than 10% of the mobile subscriber base in SA. It will certainly have an impact on those using this service (the 10% extra), but I am not sure it will necessarily force the competitors to lower their tariffs."
ICT veteran Adrian Schofield says Pick n Pay's 10% giveback is unlikely to have an impact on the price of communication, unless there is a retaliatory move from Spar and Vodacom, for example.
"Much depends on the value of the 10% savings in the mind of the customer. Will they change their other shopping habits or just seek out the best airtime price? What proportion of the current low-end and potential new low-end clients can reach a Pick n Pay store? Most [people] in the townships and rural areas are probably stuck with the local caf'e or garage."
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