WiFi bundle pricing
Vodacom recently launched its WiFi service, providing subscribers with worldwide connectivity using Wireless G hotspots locally and partners in international locations.
The company boasts about 110 000 hotspots worldwide where Vodacom WirelessG WiFi subscribers can connect, but the critical issue of pricing will most likely play a role in the success of the product.
Vodacom has various different offerings. These include the following packages which are all valid for 30 days:
100MB for R 79 (R0.79/MB)
200MB for R 144 (R0.72/MB)
- 30 minutes for R25 (R0.83/Min)
- 120 Minutes for R86 (R0.72/Min)
- 200 Minutes for R120 (R0.60/Min)
Vodacom also has larger packages which are valid for 6 months:
- 600MB for R229 (R0.38/Mb)
- 1000MB for R279 (R0.28/Mb)
Vodacom’s international price of R 1.50 per minute out-of-bundle, or 500 minutes for R600 (R1.20 per minute) which lasts for 30 days, aims to attract frequent international travelers to their WiFi service.
Competing services
MWeb and Internet Solutions will most likely be Vodacom’s strongest competitors in the WiFi space.
MWeb sells three basic packages:
- R50 for 50 minutes
- R100 for 100 minutes
- R150 for 150 minutes
At R1 per minute it is relatively expensive when compared to other offerings in the market.
Telkom’s T-Zone also provides WiFi connectivity at R1 per minute. “High-speed Internet access at R1 per minute is very cost effective,” Telkom claims.
Internet Solutions has a wide array of offers, including the following usage-based offering which are valid for 12 months:
- 100MB for R60 (R 0.60 per MB)
- 250MB for R140 (R 0.56 per MB)
- 500MB for R250 (R 0.50 per MB)
- 1GB for R450 (R 0.45 per MB)
- 2GB for R800 (R 0.40 per MB)
The following time-based services, which do not expire, are also available:
- 30 minutes for R30 (R 1.00 per minute)
- 60 minutes for R50 (R 0.83 per minute)
- 120 minutes for R90 (R 0.75 per minute)
- 240 minutes for R150 (R 0.63 per minute)
While these prices are slightly higher than the Vodacom offering, the freedom of a package which does not expire may make it a more attractive service to travelers.
When compared with MWeb and Internet Solutions, Vodacom’s WiFi service is not priced badly. It is, however, unlikely that a current Vodacom HSDPA subscriber will find much value in these WiFi offerings as the prices are generally far higher than current in-bundle HSDPA rates.
It is further unlikely that user will have access to Vodacom/WirelessG WiFi hotspots in areas without HSDPA coverage in South Africa.
The biggest value proposition of Vodacom’s WiFi offering may however lie in its international service offering where a predictable rate of connectivity will eliminate the chances of a nasty cellphone bill because of international roaming data rates.
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