Vodacom, MTN and Cell C have been very successful in South Africa in making telephony and basic data services available to a large part of the population.
The success of South Africa’s high mobile penetration rate is closely linked to affordable prepaid SIM cards and cheap handsets.
With high mobile call termination rates (aka interconnect rates) it makes financial sense for mobile operators to have as many active SIM cards on their network as possible, as they make money for every call made to that phone.
So even if a prepaid subscriber does not have the money to top up their account and make calls or send SMSs, cellular providers still generate revenue through calls made to these subscribers.
With a SIM penetration rate of around 100% in South Africa, it becomes increasingly challenging to connect the remaining unconnected millions. This is not only related to network coverage, but also the cost of handsets.
However, the fierce battle for subscribers has seen mobile phone prices drop to below R100, and these prepaid deals often come with a free SIM card and activation.
Here are some of the most affordable prepaid handset deals available in South Africa:
- The 8ta branded ‘G2101’ phone features a color screen, FM radio and games – ot retails for R99 at 8ta stores.
- Makro is offering consumers a Samsung E1801T mobile phone on Cell C for R99. The same phone costs R189 when bought from Vodacom, clearly showing the value of this deal.
- MTN has been offering a sub-R100 phone to consumers – the MTN ZTE S308 mobile phone with a free starter pack priced at R99.
Do you know of any cheap prepaid deals? << Please give your views in the forum