Cell C CEO Alan Knott-Craig has slated Vodacom’s plan to charge customers R5 per month to gain access to lower call rates, saying that Vodacom has “screwed customers long enough. Let them keep their R5″.
Speaking to Techcentral, Knott-Craig said that South Africa “must be the highest-margin telco country in the world”, adding that Cell C can probably cut their 99c per minute tariff again because there is still margin on the international rate.
Vodacom recently announced that it is planning to launch a new international calling promotion where subscribers will pay 89c per minute when making international calls to 52 destinations.
To qualify for the lower international call rate, subscribers will have to pay a R5 monthly fee.
Vodacom said that the launch of this promotion had to be postponed “due to minor technical issues experienced in the final round of testing”.
Knott-Craig told MyBroadband that Cell C is definitely looking at Vodacom’s promotional pricing, and is considering a counter product to rival Vodacom.
Vodacom spokesperson Richard Boorman said in response to Knott-Craig’s comments that Vodacom’s planned per minute rate for international calls is cheaper than Cell C, adding that “time will tell whose offering is more popular”.