Vodacom has reduced call rates by up to 50% during its 17:00 to 20:00 peak time.
The new tariff offers a standard on-network call rate of R1.49 per minute for pre-paid and contract customers.
The new tariff is effective on 28 August for pre-paid customers and from 1 October for all contract subscribers. The price-cut for subscribers is subject to ICASA`s approval.
The new rates and other tariff adjustments will result in a saving of between 4% and 9% of monthly spend for pre-paid customers, according to Vodacom. Contract customers will also enjoy a reduction of their monthly bill, the statement says.
The reduction is a continuation of a trend to lower tariffs in a competitive environment, says Vodacom CEO Allan Knott-Craig. Knott-Craig also promises more competitive data rates as the company rolls out its 3G network.
"The price reduction is a step in the right direction, especially as pre-paid customers make up the largest proportion of Vodacom`s customers," says Communication Users Association of SA spokesperson Ray Webber.
He is cautious however, of Vodacom`s motivation, especially in view of the ICASA investigation that is currently under way regarding telecoms pricing.
The reductions are limited to Vodacom-Vodacom calls, Webber notes, which means that Vodacom customers will not benefit when they call another network. Webber encouraged Vodacom to offer similar tariffs for calls between networks.
Webber is hopeful that Vodacom`s initiative will begin a chain reaction of lowering of prices among all network operators.
"In fact, we`re sure it will," he says.
Telkom needs to reduce its fixed-to-mobile interconnect rate, Webber says. Such a move would be necessary, as Telkom is at a distinct disadvantage due to the unbalanced interconnect regime, he says.
The new tariffs exclude high spending Vodacom customers who, the company says, already enjoy very low tariffs. These include Talk 500, Corporate 500, Talk 1000 and Messengers.
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