The Communications Users` Association of SA (CUASA) hopes that Vodacom`s decision to slash certain tariffs in half could start a chain reaction.
This follows the news that Vodacom is cutting up to 50% off rates during its peak time of 5pm to 8pm. The new tariff offers a standard on-network call rate of R1.49 per minute for prepaid and contract customers.
CUASA spokesman Ray Webber says the price reduction is a step in the right direction especially as prepaid customers make up the largest proportion of Vodacom customers.
Webber adds that the initiative could begin a chain reaction of lowering of prices among all network operators. "In fact, we`re sure it will," he says.
However, Webber notes that the reductions are limited to Vodacom-Vodacom calls, and urged Vodacom to offer similar tariffs for calls between networks.
Webber also called for Telkom to reduce its fixed-to-mobile interconnect rate. He says such a move would be necessary, as Telkom is at a distinct disadvantage due to the unbalanced interconnect regime.
Vodacom`s new tariff is already effective for prepaid customers and will come into effect on 1 October for all contract subscribers. The price cut for subscribers is subject to approval by the Independent Communications Authority of SA (ICASA).
According to Vodacom, the new rates and other tariff adjustments awaiting ICASA approval will result in a saving of 4% to 9% of monthly spend for its prepaid customers. Contract customers will also enjoy a reduction of their monthly bill, says the company.
Vodacom CEO Allan Knott-Craig says the reduction is a continuation of a trend to lower tariffs in a competitive environment. Knott-Craig also promises more competitive data rates as the company rolls out its 3G network.
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