Cellular13.08.2014

Massive data price hikes on MTN contracts

MTN curve

MTN has significantly increased the price of the 300MB, 500MB, 1GB, and 2GB data add-on bundles for its MyChoice contracts.

Prices were hiked by between 66% and 104% on 1 August 2014, the same day the network introduced its new data bundles and “data giveback” rewards.

While this does mean that MTN’s data bundle pricing structure has been simplified (contract, top-up, and pre-paid users now all use the same bundles), it will translate to a price increase for many MTN MyChoice users.

The changes are summarised in the table below.

MTN Data bundle Old MyChoice price New price Change New Giveback bundle Giveback Bundle Validity Period
5MB N/A R3 New 2.5MB Same Day (expiry at 23h59)
20MB R10 R10 +0% 10MB Same Day (expiry at 23h59)
50MB N/A R19 New 25MB 3 Days (expiry at 23h59)
100MB R30 R29 -3% 50MB 3 Days (expiry at 23h59)
300MB R40 R79 +98% 150MB 5 Days (expiry at 23h59)
500MB R50 R99 +98% 250MB 5 Days (expiry at 23h59)
1GB R90 R149 +66% 1GB 30 Days (expiry at 23h59)
2GB R120 R245 +104% 2GB 30 Days (expiry at 23h59)
3GB N/A R299 New 3GB 30 Days (expiry at 23h59)
5GB N/A R399 New 5GB 30 Days (expiry at 23h59)
10GB N/A R599 New 5GB 30 Days (expiry at 23h59)
20GB N/A R1,199 New 10GB 30 Days (expiry at 23h59)

A number of MTN contract subscribers have expressed unhappiness with the changes, arguing it is not right that they have to face an increase in data prices with no way to back out of their contracts.

“MTN has increased some prices of data bundles for My MTNChoice customers as well as decreased certain prices,” a spokesperson for the network said when asked about the changes.

“This affects new customers and customers who buy once-off monthly data bundles. Customers have been notified of this change.”

Asked exactly how customers will be affected, MTN broke it down as follows:

  • Package inclusive deal – no impact, subscription remains the same
  • Package inclusive deal, purchasing ad-hoc after 1 August – new price on ad-hoc purchase
  • Package inclusive deal on a recurring bundle – no impact

MTN also highlighted that customers will receive up to 100% of the data in the bundle as a “free giveback”. The amount of free data and its period of validity is shown above.

However, a quick comparison of the previous prices and the new prices shows that the “free giveback” promotion doesn’t fully compensate for the price hikes.

Where MyChoice subscribers were previously able to buy 2GB of data that would roll over to their next billing cycle for R120, it will now cost them R149 and the “free” 1GB expires after 30 days.

Queried about why it made the changes, MTN said it was done to align their pricing to what is in the market.

“MTN offers the best out-of-bundle rates in the market, as well as data carry-over,” the spokesperson said.

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