R149 for 2GB specials: Will they last?

Rudolph Muller

May 29, 2011

1 comment

Cell C, Vodacom and MTN are all offering customers 2GB of data at R149 per month. But for how long will these promotions continue?

When Cell C launched their 21Mbps HSPA+ network and broadband offerings in September 2011 consumers were delighted by the company’s aggressively priced 24GB and 60GB prepaid broadband promotions.

In November last year Cell C complimented their prepaid data offerings with twelve month contract offerings – including a 2GB promotion priced at R149 per month.

Vodacom and MTN responded to Cell C’s promotion recently, also offering consumers 2GB of data and a modem for R149 per month.

Below cost?

The sustainability of these mobile broadband promotions were questioned with many industry players pointing out that these special prices are well below cost.

Vodacom CEO Pieter Uys told MyBroadband that while it is complex to calculate the exact cost of delivering a MB of data over their network, their current 2GB promotional price is definitely below cost.

8ta’s Zoltan Miklos also said at the recent broadband summit that a price of 3c or 5c per MB is simply not sustainable for 8ta, with a price of 10c per MB being bandied around as the floor for sustainable mobile broadband pricing.

Promotions to end?

Vodacom, MTN and Cell C are aggressively marketing their 2GB mobile broadband promotions, but the longevity of the promotions is uncertain.

Vodacom said from the outset that their promotion will only be available for three months: from 1 May to 31 July.

MTN’s promotion was initially advertised as being valid from 1 May to 16 May, but the promotion simply continued after the 16 May deadline and the company is now saying that the offer will be available “while stocks last”.

MTN was contacted to gain clarity about their 2GB promotion, but the company did not respond to requests for information.

Cell C is also promoting their 2GB special as being available “while stocks last,” and the company would not give details about their stock levels and potential end dates.

MyBroadband has also received information that Internet Solutions notified their customers that from the end of May the promotion from Cell C would come to an end. “Stock on hand can still be activated for 3 months after (up to August),” one user reported.

Cell C was asked about this apparent notice from Internet Solutions, but the company did not provide feedback by the time of publication.