Broadband17.04.2009

Mobile broadband pricing comparison

Vodacom recently launched its Broadband Advanced service, offering clients equal in-bundle and out-of-bundle rates and maximum download speeds of 7.2Mbps. This service however comes at a higher price than the company’s Broadband Standard product, begging the question whether it provides a better value proposition.

The new Broadband Advanced service is aimed at contract subscribers who do not want to actively monitor their monthly usage and avoid high bills for out-of-bundle usage. It however does not provide a compelling value proposition to all mobile broadband users apart from the higher download speeds.

Coverage

One of the biggest value propositions of the Vodacom broadband offering is its country-wide coverage. Vodacom currently has the most extensive broadband access network in the country, with 2 700 active 7.2Mbps 3G/HSDPA towers.  

In comparison MTN has 1 700 3G/HSDPA towers of which 400 are 3.6Mbps-enabled and just over 100 are 7.2Mbps-enabled.  Telkom currently has a total of 103 live 3G/HSDPA towers with another 130 in various stages of completion.

Vodacom’s superior coverage provides frequent travelers to places other than the major metropoles with near-ubiquitous broadband coverage, but it comes at a price.  Vodacom is currently more expensive than Telkom and MTN when it comes to basic mobile broadband pricing.

Pricing comparison

The following table provides a basic pricing comparison between the three HSDPA providers in South Africa. The pricing is given for 24-month contracts which include the necessary hardware to connect to the service.

Mobile Broadband Pricing
1 GB Contract
  Bundle Price Out-of-bundfle per MB Bandwidth life span Maximum Speed
Vodacom Advanced 389.00 0.38 60 days 7.2 Mbps
Vodacom Standard 349.00 1.20 60 days 3.6 Mbps
MTN 349.00 1.20 60 days 1.8 – 7.2 Mbps
Telkom 312.83 0.30 30 days 7.2 Mbps
         
2 GB Contract
Vodacom Advanced 599.00 0.29 60 days 7.2 Mbps
Vodacom Standard 449.00 1.20 60 days 3.6 Mbps
MTN 449.00 1.20 60 days 1.8 – 7.2 Mbps
Telkom 442.83 0.30 30 days 7.2 Mbps
         
3 GB Contract
Vodacom Advanced 799.00 0.26 60 days 7.2 Mbps
Vodacom Standard 649.00 1.00 60 days 3.6 Mbps
MTN 649.00 1.20 60 days 1.8 – 7.2 Mbps
Telkom 582.83 0.30 30 days 7.2 Mbps

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