When comparing pricing from SA's four major mobile operators, MTN has the most expensive prepaid data bundles, while Cell C has the most expensive out-of-bundle (OOB) data rates.
This is according to a bi-annual report from the Independent Communications Authority of South Africa (ICASA) on the analysis of tariff notifications submitted for the period 1 July to 31 December 2017. ICASA compared the price of prepaid data bundle of mobile operators MTN, Vodacom, Cell C and Telkom Mobile, and also the OOB rates of each operator.
Across the board, MTN's data bundle prices for prepaid users come out as the most expensive when compared to its peers, while Telkom has the cheapest option under most bundle sizes. Vodacom and Cell C's data bundle prices are almost identical except for the highest bundle of just over 20GB, where Cell C's is the cheapest of the four, at R799.
Prepaid data costs per operator
Bundle size (MB) | MTN | Vodacom | Cell C | Telkom |
100 | R35 | R29 | R29 | R29 |
250 | N/A | R63 | N/A | R39 |
500 | R105 | R99 | R99 | R69 |
1 024 | R160 | R149 | R149 | R99 |
2 048 | R260 | R249 | R249 | R139 |
3 072 | R330 | R299 | R299 | R199 |
5 120 | R430 | R399 | R399 | R299 |
10 240 | R650 | R599 | R599 | R499 |
20 480 | R1250 | R999 | R799 | R899 |
* Data according to ICASA for period 1 July 2017 to 31 December 2017
The table above does not take into account the many different promotional data bundle options offered by each of the four mobile network operators (MNOs) but rather standard rates for 30-day bundles.
Variance vex
The authority also compared the 'absolute value variance' for each bundle size for each operator; ie, the difference between the in-bundle rate and the OOB rate.
ICASA found the lower the size of the data bundle the lower the variance. For example, the absolute value variance for 500MB ranges from R76 to R451 between the licensees, and the absolute value variance for 1GB ranges between R197.96 and R977.40. Cell C has the highest absolute value variance for both 500MB and 1GB, while Telkom Mobile has the lowest for both data bundles.
According to ICASA's data, Cell C and Vodacom are charging the same rates for a 1GB (R149) and 3GB (R299) bundle, while Telkom Mobile charges the lowest rates for both data bundles, at R99 for 1GB and R199 for 3GB.
It observed that Cell C increased prices in the period for a number of its prepaid data bundles: ie, 100MB by 52.6% (from R19 to R29); 500MB by 16% (from R85 to R99); 2GB by 1.6% (from R245 to R249), 10GB by 9.1% (from R549 to R599). However, Cell C reduced the price for its 20GB data bundle by 27.3% (from R1 099 to R799). This is the lowest price for a 20GB data bundle between all four MNOs.
During the period, Cell C also reduced the out-of-bundle data rate on its 66c prepaid tariff plan by 77.3%, from R0.66 to R0.15. However, ICASA says Cell C's prepaid OOB rate across its data bundles remains at R1.10, making Cell C the highest OOB rate out of the four. This also means Cell C's absolute value between OOB and in-bundle rate is the highest among the four.
Cell C's absolute value variance for a 100MB bundle is R81; for a 1GB bundle is R977.40; for a 5GB bundle is R5 233; and for a 20GB bundle is a massive R21 729. In comparison, Telkom Mobile's absolute value variance for a 100MB bundle is R0; for a 1GB bundle is R197.96; for a 5GB bundle is R1 185.80; and for a 20GB bundle is R5 040.20.
In October 2017, Vodacom also reduced its prepaid OOB rate from R2 to R0.99. This resulted in a noticeable decrease in the percentage variance between in-bundle rates and OOB rates; for instance, the 20GB data bundle decreased from 4 000% in the previous report, to 1 930%. Vodacom also increased the price of its 250MB monthly data bundle by 6.8%, from R59 to R63.
ICASA says Telkom Mobile has become relatively cheaper in the market, as compared to Vodacom, Cell C and MTN, with MTN charging the highest prepaid data bundle rates.
Value for money
ICASA's statistical data shows that in-bundle data rates decrease as the value of the data bundle increases, ie, it's cheaper per MB to buy a big bundle than a small bundle. This phenomenon is something analysts in the past have pointed out favours the rich over the poor, because the poor are not able to afford bigger bundles or enjoy the savings that come with them.
For those who can afford a bigger bundle, the cost per MB decreases considerably the bigger you go. For example, a Vodacom customer that purchases a 1GB data bundle will pay an in-bundle rate of R0.15 per MB, whereas a Vodacom customer that purchases a 20GB data bundle will pay an in-bundle rate of R0.05 per MB.
This is similar to MTN, where an in-bundle rate of R0.16 per MB is charged for a 1GB data bundle and R0.06 per MB for a 20GB data bundle. Telkom Mobile's in-bundle rate is R0.10 per MB for a 1GB data bundle and R0.04 per MB for a 20GB data bundle. Cell C's in-bundle rate is at R0.15 per MB for a 1GB data bundle and R0.04 per MB for a 20GB data bundle, according to ICASA.
"This means the unit cost of data rapidly decreases as the size of the bundle increases; ie, the subscriber received more data per rand amount as the bundle size increased," the report says.
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