Faizel Patel, Radio Islam News – 04-10-2017

Mobile operator Vodacom says it will be cutting the cost of out-of-bundle prices for all customers by as much as 50%.

Vodacom and other mobile operators have come under increasing pressure for out-of-bundle data charges, which analysts say unfairly penalise end users, especially the poor.

The Competition Commission has also launched a market inquiry into the perceived ‘excessive’ cost of data in South Africa.

Vodacom says the reduction of out-of-bundle prices will come into effect from mid-October.

“For pre-paid and customers on top-up packages, the out-of-bundle rate will drop by as much as 50% once the new 99c per megabyte tariff comes into effect on 15 October. The out-of-bundle rate for post-paid customers was reduced from R1 per megabyte to 89c on 1 October.”

Vodacom has recently introduced a series of measures to encourage in-bundle adoption and minimise out-of-bundle usage.

“Over the last few years, we’ve significantly brought down the cost of voice tariffs and moved customers to more affordable plans. We undertook to reduce out-of-bundle rates, and we’ve now delivered on that too.”

At the same time Vodacom CEO Shameel Joosub says more will be done by the network to increase network coverage.

“We need to expand 4G coverage still further, and keep pace with an increase of more than 45% in sustained data traffic demand. Both of these come at a cost, and we have invested some R32.7 billion over the last four years.”

Joosub says the lack of access to spectrum is hampering Vodacom’s ability to drive down infrastructure costs and in turn, enable the mobile operator to pass savings to the consumer.

Twitter: @FaizelPatel143