-
Join the MyBroadband community
South Africa’s biggest forum. Discuss, discover, and connect with thousands of members.
-
Question of the Day: Will you be subscribing to the new Disney+ R49 streaming package?
SA mobile contract cancellations: what you will pay
- Thread starter rpm
- Start date
6000/24 = R 250
250 + 259 = 509
Over 24 months you will pay R509 , ignoring interest on your credit card
509 x 24 = R 12 216
Lemme take a look and see what I could get for R 459/ month , and the fact that I can upgrade after 20 months, on MTN.
IPhone 5
Iphone 5s
lumia 930
HTC 0NE M8
S5 mini
S5
459 x 20 = 9180
12216- 9180 = R 3 036 saving if you upgrade after 20 months
Maths!
Last edited:
Until you get sick and tired of MTN in month 12 and you wish to cancel/move to Vodacom. Then the math stops making sense.
So yes, you get a "benefit" by being tied up in a 24 month contract. But you are still tied up.
I can't remember - does your contract renew from month 20 (i.e. if month 20 is Nov 2014, does it mean your new contract runs from 1 Dec 2014 to 30 Nov 2016)? Or does it renew from month 24 (i.e. if month 20 is Nov 2014, then your new contract runs from Mar 2015 to Feb 2017).
That's not the entire story...
1: Prepaid calls are WAY cheaper per minute vs contract... 79c vs R2/R3 depending on package
2: Out of bundle shark, it's a real thing and loads have people have been taken for thousands
3: Freedom to move networks. On prepaid, getting bad service? No problem port to someone else
4: Special offers: Contract customers get nothing except a good rodgering each month. There always seems to be some exciting promotion for the prepaid crowd. CellC "Super Charge"" for example, Buy R150 airtime + get 400mb data + more. I can phone CellC to Cellc for 6 hours straight free with all the free calling minutes I have accumulated.
5: Device cost: Vodacom loads at least 25% margin on the cost of a handset that you finance on your contract, so if you buy cash smartly, you can get a handset for a lot cheaper. Don't believe me? Go and try buying an iPhone cash from a Vodacom outlet? Expect to pay at least R2000 over recommended retail. FNB is a much cheaper finance option.
And to your point of early upgrade, if you upgrade in month 20, guess what? You are now stuck in for another 28 months before you can cancel.
Baba Vakai
Well-Known Member
- Joined
- May 24, 2012
- Messages
- 401
- Reaction score
- 2
furpile
Expert Member
Your maths is wrong.
250 + 259 =/= 459
459 x 12 =/= 11016 (I know you meant 24)
A contract is not a saving anymore. Since CellC started the price war, everybody is just competing on prepaid prices, and contracts have remained behind.
furpile
Expert Member
If VC or MTN ever only make a little bit of profit I would not mind their pricing, but the fact is they make billions. They are definitely not on the edge of profitability.
Vodacom: R20 billion operating profit for the last year (R18 billion in SA).
MTN: R40 billion operating profit for the last year (not sure how much in SA alone).
I would only cancel if it makes sense to me, over the years, I never had a reason to cancel and I always make sure that I keep within my budget, which is not much, I chase the specials and am satisfied with what I receive in return.
See below for my upgrade schedule, that is every 20 months
Upgrade request history
Upgrade Date
Upgrade Processed 2013-04-xx
Upgrade Processed 2011-08-xx
Upgrade Processed 2009-12-xx
If you didn't notice, I'm due for another one in December.
The device will be a christmas present for someone and I will keep using my Lumia 1020, which I love.
If I do desire a new phone my wifes upgrade is due in February, and she is still happy using her iPhone.
-------------------------------
1: Prepaid calls are WAY cheaper per minute vs contract... 79c vs R2/R3 depending on package
Problem with prepaid is, its difficult to budget for. Whereas on contract I know exactly how much I am paying monthly.
And if i need any additional, i can load it or use a prepaid sim card with all these benefits you mentioned. Which is why I carry a cheapie phone just in case
2: Out of bundle shark, it's a real thing and loads have people have been taken for thousands
Which is why I cap my account at a limit. The line I have for my wife was open, and it racked up some ZAR's, but the consultant processing your request always (or should) ask if you want a limited or open account.
3: Freedom to move networks. On prepaid, getting bad service? No problem port to someone else
Cheapie phone and sim for backup
4: Special offers: Contract customers get nothing except a good rodgering each month. There always seems to be some exciting promotion for the prepaid crowd. CellC "Super Charge"" for example, Buy R150 airtime + get 400mb data + more. I can phone CellC to Cellc for 6 hours straight free with all the free calling minutes I have accumulated.
Cheapie phone and sim for backup, data,minutes or airtime rolls over on my contract
5: Device cost: Vodacom loads at least 25% margin on the cost of a handset that you finance on your contract, so if you buy cash smartly, you can get a handset for a lot cheaper. Don't believe me? Go and try buying an iPhone cash from a Vodacom outlet? Expect to pay at least R2000 over recommended retail. FNB is a much cheaper finance option.
Never looked at this option of financing a phone elsewhere, so point taken. Will do the math later
Basically it justs makes more sense for me to be with MTN than go prepaid
This is list of devices I have since joining MTN
Nokia E90 , first contract ...... still powers on, forgot pass
Samsung Wave S8600 ... still works, bada OS sucks after installing firmware. don't use
HTC Flyer, 7 inch tab ..... Sold
Nokia Xpress Music ............ Stolen
Blackberry Q5 ... fell in water, still works, need to replace battery @ R400
Iphone 4 , .... wife using
Nokia Lumia 900 , .... Microphone faulty
Nokia Lumia 1020, ..... I am using as main, LOVE!
Samsung s4 mini ..... sold , do not like
Hisense 40'' LCD with cheapie Nokia .... Still using TV, sold cheapie phone
HTC Desire ..... Slow as a snail now
Samsung Galaxy Note 10.1 ..... Still using
How much would you pay for all this cash, and would you?
Granted I made a few bad choices, but was experimenting, and try to be unique.
Last edited:
AAaaaaaaaah! And I got an A for Maths.
250 + 259 =/= 459
It is actually 509. This strengthens my case by R50
Until you get sick and tired of MTN in month 12 and you wish to cancel/move to Vodacom. Then the math stops making sense.
So yes, you get a "benefit" by being tied up in a 24 month contract. But you are still tied up.
I can't remember - does your contract renew from month 20 (i.e. if month 20 is Nov 2014, does it mean your new contract runs from 1 Dec 2014 to 30 Nov 2016)? Or does it renew from month 24 (i.e. if month 20 is Nov 2014, then your new contract runs from Mar 2015 to Feb 2017).
Strangely enough, I never had a problem with MTN yet except for a billing issue once upon a time. But other than that, I'm not sure what would entice me to leave them at this point.
I usually stick with what works! Which is also why I moved from Mweb to Telkom.
What kind of problems are you guys referring to?
See below for my upgrade schedule, that is every 20 months
Upgrade request history
Upgrade Date
Upgrade Processed 2013-04-xx
Upgrade Processed 2011-08-xx
Upgrade Processed 2009-12-xx
If you didn't notice, I'm due for another one in December.
True, got a quote from them last month, was left with 11 months at that stage. You'll practically pay them what's left of your contract.
Tweakd Out
Well-Known Member
- Joined
- Aug 13, 2013
- Messages
- 450
- Reaction score
- 3
Why dont we have 6 month contracts...?
falcon786
Honorary Master
I have cancelled one MTN contract and one Cell C contract and to be honest I found both of them applying very reasonable and fair cancellation rates,they both appear to use a similar formula: (10% of remaining months) + (the cost of your device divided by 24 months multiplied by the months remaining) + (outstanding amounts being owed currently).
cr@zydude
Honorary Master
Cell C offers them. If you take one with a phone, expect to pay a high price per month, as the phone is paid off over 6 months instead of 24.
Someone asked what happens if you die with a contract running. Your estate would have to cover it. Most contracts don't end at death.
Less profit for them maybe?
Actually I called MTN and got a price to cancel my contract. Anytime 200 with 8 months left, phone at the time was an iPhone 5
They want R4500 to cancel the contract. Told them to go **** themselves.
They want R4500 to cancel the contract. Told them to go **** themselves.