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Gloves off in mobile price war

It's no secret that despite having the longest-standing mobile networks on the continent, SA still has some of the highest mobile call rates in Africa. This week, Cell C went some way to correcting that when it announced it was cutting prepaid rates, and hinted that new post-paid pricing will follow soon, but there's arguably still a long way to go.
On Wednesday, 16 May 2012, Cell C announced it was dropping prepaid call rates to 99c/minute regardless of the time of day or destination network. Within minutes, Vodacom responded with its own price cut, that appeared, at first glance, to match Cell C's rate.

Vodacom's offering, however, sees customers billed 99c for the first minute, and then in 30-second increments thereafter. Cell C's new prepaid plan, on the other hand, is billed per second from the first second, making it much better priced and, more importantly, the more transparent of the two offerings.

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About Craig Wilson

Craig Wilson is an ICT journalist and speaker based in Johannesburg. He is deputy editor at TechCentral, the South African source for technology news, reviews and opinion, and regularly provides insight into the technology industry for radio and television. Email him at , follow @craigwilson on Twitter and connect on LinkedIn.
Arregante Storbeck
Loving it, just keep going at it. There is at least one thing in SA going down instead of increasing.
Posted on 18 May 2012 11:28
Rob Campbell
In my opinion this is not an attempt by the industry to reduce call rates. It seems to be a strategic attempt by Cell C to gain some market share. Vodacom simply applied a simple blocking strategy. In the end the market leader will win this war. If I were Cell C, I would drive brand traction by developing products that increases data-usage in the markets who are consuming more data.
Posted on 18 May 2012 15:09