Cell C claims 8ta, Telkom's new mobile network, is copying pricing that it introduced in November 2009.
All three of the country's established mobile network operators, MTN, Vodacom and Cell C, greeted the arrival of the fourth mobile operator with varying degrees of lukewarm welcomes. They all stated they welcome the increased competition and that it would be good for market growth.
However, Cell C, until now the country's smallest operator, appeared to be the most irritated, particularly on the pricing issue.
Simon Camerer, Cell C's executive head for marketing, says: “We have reviewed the rates announced by 8ta and at first glance it is quite clear that our mobile rates have been copied.”
Camerer says Cell C introduced its R1.50 flat rate (R0.50 for SMS) in November 2009 across its prepaid packages and has since also introduced the flat rate to ControlChat and Postpaid subscribers.
“In addition, Cell C continues to reward its prepaid subscribers with free minutes at a 1:1 ratio. For each rand customers recharge with, they get one free minute. (The minimum required recharge amount is R10).”
Camerer adds that Cell C also believes 8ta's data rates are relatively expensive compared to what Cell C is currently offering in the market.
“There has been a rapid rate of innovation at Cell C over the past few months, and we will continue to introduce innovative products and services to meet the needs of our customers as per our vision,” he notes.
Shameel Joosub, MD of Vodacom SA, says in reaction to 8ta's launch pricing: “We'll continue to ensure that our offerings are competitive and attractive.”
Joosub says all mobile operators are dependent to some extent on Telkom's fixed-line infrastructure, but the extensive self-provisioning programmes already under way are changing this situation.
MTN SA MD Karel Pienaar says: “MTN welcomes competition as it inherently provides consumers with competitive prices and product choices, as well as promoting creation of employment and advancement of social and economic welfare of South Africans.”
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