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Vodacom offers budget bandwidth

Christo van Gemert
By Christo van Gemert, ITWeb journalist
Johannesburg, 30 Nov 2010

Vodacom has released an Starter Pack, nipping at the heels of Cell C's competitively-priced bundles.

As the name implies, the bundle is aimed at entry-level users who need basic access for e-mail and Web browsing. It is priced at R399, which includes a 3G USB modem and 100MB of data per month, for 12 months.

The out-of-bundle data rate on the Internet Starter Pack is R2 per MB. It is still possible to purchase additional data bundles for the SIM card.

This is in direct response to the entry-level bundles from Cell C, which sells a 100MB prepaid data bundle for R50. 8ta also sells 100MB for R50. Vodacom's prepaid bundle rate for its 110MB offering is R88. MTN has a 75MB contract (24 months) for R79 a month, including a modem. The 75MB bolt-on bundle costs R49. There is no 100MB offering.

Steven Ambrose, MD of WWW Strategy, says: “It is a good price, but not a great deal.”

Ambrose points out that the modem cost alone is worthwhile, but there are better deals to be had, such as Cell C's 2GB bundle, for R1 499. This gives users 2GB a month, for 12 months.

“What [Vodacom] is trying to do is get people on board at a low cost. A R400 up-front payment is a great deal.

“The challenge is that 100MB is not a lot of data - even if you do basic surfing and e-mail. 100MB per month is very little,” he says.

Ambrose says Vodacom could be hoping to stimulate sales of its data bolt-on packages. “This is just a great marketing ploy to get [those] customers onto the system.”

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