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Vodacom Slashes Prepaid Rate ‘To Lowest Per Minute’

Johannesburg — VODACOM has thrown down the gauntlet to competitors with the launch of a R1,40 all-day voice call tariff to all mobile operators. This is an aggressive response to Telkom ‘s mobile unit 8ta, which launched more than a week ago with an all-day prepaid rate of R1,50 to all mobile networks similar to Cell C’s offer. But unlike the competitors, 8ta gives customers free minutes for every three-minute call that its users receive. Analysts expected the response from mobile network operators to protect their market share. Shameel Joosub, the MD of Vodacom SA, said the new rate is the “lowest per-minute rate to mobile networks available to prepaid customers anywhere in SA”.

byPC Tech

October 27, 2010

He said Vodacom will bill in 30-second increments after the first minute, as opposed to other offers in the market, which are billed in 60-second increments vodacom after the first minute.

David Lerche, a telecoms analyst at Avior Research, said it is not “clear cut” that the offer is the cheapest as other packages also provide good deals.

World Wide Worx MD Arthur Goldstuck said that on the surface, the all-day flat rate is the cheapest in terms of its price tag, but not in terms of actual call costs.

The costs of this type of package mean consumers are charged for a full minute even if the call lasts for a few seconds.

Per-second billing is still considered a cheaper option.

Vodacom has also introduced a flat rate of 50c per SMS for text messages – the same as 8ta. But 8ta gives 50 free SMSes after five sent messages.