Mobile data: out of bundle rates compared

by Christo van Gemert, ITWeb journalist
Johannesburg, 18 Nov 2010

Cell C has the cheapest, all-inclusive data bundles in SA, available on its new high-speed HSPA+ network. However, consumers looking to use more data than their bundle allows will pay the highest rates in the country.

While its bundled prices are extremely competitive, the out-of-bundle rate – charges for each megabyte transferred outside the stipulated cap – are the highest. Cell C charges a flat rate of 39c per megabyte out of bundle.

Out of bundle rates

Vodacom has a tiered system for its out-of-bundle charges. Customers on the Vodacom Broadband package will be charged R1.20 per megabyte when on the MyGig 2.3GB bundle, and 50c for those on the MyGig 5GB bundle.

Alternatively, Vodacom's Broadband Advanced offers the same in-bundle and out-of-bundle rates. In this case, the MyGig 2 and MyGig 5 bundles have rates of 19c and 18c respectively.

MTN's 2GB bundle boasts the same out-of-bundle rates as Vodacom: 19c per megabyte. It lacks a 5GB product, instead offering an “Uncapped Lite” bundle with a fair use policy of 3GB. This costs R749 a month, and has no out-of-bundle rate.

Telkom's 8ta also boasts lower rates than Cell C. Both its Internet 2 (1.5GB) and Internet 3 (3.2GB) packages have a flat rate of 30c per megabyte, out of bundle.

Brian Neilson, director of telecommunications research at BMI-TechKnowledge, says the importance of an out-of-bundle rate depends on the type of customer and how much they want to use.

“If they're low-end users, it's not going to matter at all because they'll almost never go out of bundle,” he says, citing research that shows most South Africans don't even use up 3GB of data.

For more demanding users, Neilson adds, that they should be fine “as long as they get fair warning before they go out of bundle, and are able to take advantage of larger bundles”.

Cell C does not offer any bolt-on package to top up a data bundle before the end of the month. The same is true for 8ta. Users have no option but to pay the high out-of-bundle rate, or to purchase an additional SIM card with the cheaper data.

MTN and Vodacom allow customers to top up when their data quota has been met or exceeded.