MTN Zone – will you save money?
MTN recently launched their MTN Zone service, promising discounts of up to 95% for prepaid subscribers. The new service has a base call rate of R 2.50 per minute, with a varying discount rate which adapts according to the network and area congestion. The lower the network usage, the larger the discount.
Through this new initiative MTN aims to change the traditional usage patterns and further stimulate call rates during times of low network utilization.
This new system can mean big savings to MTN subscribers making on-net calls during peak hours, but there is however the risk of paying higher prices in off-peak times.
Savings
During peak hours the standard prepaid rate is R 2.80 per minute, higher than the R 2.50 on MTN Zone. This means that MTN Zone subscribers will save money during peak times, independent of the discounts offered through the new service.
MTN said that the average MTN Zone saving is 20% during peak time, resulting in an average rate of R 2.00 per minute – significantly lower than the standard R 2.80.
In standard and off-peak times the situation however is different.
The per minute rate for standard time prepaid calls from MTN is R 1.99, far lower than the MTN Zone’s R 2.50. To save money on calls during this period users should receive at least 20% off.
The situation is even more accentuated during off-peak times where the usual rate of R 1.19 is less than half the R 2.50 per minute rate for MTN Zone subscribers. This means that users should look for discounts of more than 50% to save on their usual prepaid rates.
MTN pointed out that the average discount for standard times is 30% while MTN Zone subscribers can expect around 70% savings during off-peak periods.
Testing
A quick drive around Johannesburg – maybe not the best area for maximum MTN Zone savings due to high network usage – indicates that users will most likely see savings using this new system.
During peak hours in high density areas the discounts were generally between 5% and 20% – with an occasional 70% – which means that users will see lower than standard rates on the new service.
During standard times these discounts jumped to between 20% and 40%, again ensuring a cost benefit.
Off-peak discounts ranged from around 55% to 95% – promising lower rates than what traditional prepaid customers pay.
Users will be well advised to familiarize themselves with this new system to ensure maximum savings, but on the whole it seems that savings are indeed in store for MTN Zone users.
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