Taxation & Regulation News South Africa

Into the saving zone

Cellphone company launches a world-first innovation helping customers save money.
Into the saving zone

MTN South Africa has launched MTN Zone, a new prepaid per second billing price plan that is claimed to offer potential discounts of up to 95% on mobile phone calls for the company's prepaid subscribers making MTN to MTN calls. The new product has a flat rate of R2.50 across all time periods, with discounts being driven by dynamic demand determined by the caller's location and the time of day.

The product is claimed to be a world first to be launched in a competitive market and the company believes it is bound to be followed locally and internationally in the quest for more affordable mobile communications. This innovation follows on the company being the first cellular provider to introduce prepaid in South Africa.

In order to enjoy the benefits of the new product, the company's subscribers prepaid customers need to migrate from their existing prepaid price plan to MTN Zone by following easy migration steps. This can be done by dialling 141 on their phone and selecting the zone option or simply by dialling *141*4*2#. Once migrated to the new product, the customer needs to set up the cell broadcast function on their handset. Customers are then informed of the percentage discount applicable in a particular cell location as they move through it, based on the demand in that location at the time.

The discount remains constant for the duration of the call, even if the call cuts across the hour or moves between cells. Billing is done at per second rates and the customer remains in control of what they spend on their discounted calls. If a customer is unclear about their applicable discount, help is just a call away by dialing *135# or the 173 call centre at any time.

When calling landline numbers or subscribers from other networks, MTN customers pay standard rates.

With the MTN Zone rollout, the company is also creating new jobs. More than 750 MTN Zoners are currently educating South African consumers on the benefits of the product in townships countrywide. The initiative is expected to grow and the company foresees 1,400 new jobs being created through the zone by the end of the year.

Let's do Biz