Cellular25.04.2010

Mobile data prices: Vodacom versus MTN

In March MTN became the first local cellular provider to increase the value proposition to its mobile broadband subscriber by reducing its out-of-bundle data rates by up to 84%.

MTN also launched time based data services and introduced a 1-Day Unlimited bundle which lasts for 24 hours and is available at R50.

Vodacom hit back last week by upping data allowances on both its broadband standard and broadband advanced packages.  Vodacom further provisioned all the data SIMs to 14.4 Mbps.

A direct pricing comparison is challenging since the two companies now have different data bundle sizes, but a fair way to compare the overall value proposition is to examine what you get for a certain price. 

The following table provides an overview of what consumer receive from MTN and Vodacom for their money.

  MTN Vodacom Advanced Vodacom Standard
  Bundle OOB Bundle OOB Bundle OOB
R149 300MB R0.50 175MB R0.85
R189 500MB R0.38 300MB R0.63 600MB R1.20
R289 1GB R0.29 1.2GB R1.20
R389 2GB R0.19 1.5GB R0.25 2.4GB R1.20

From the table it is clear that MTN provides a far better value proposition than Vodacom’s Broadband Advance offering, with both larger data bundle sizes and lower out of bundle rates.

Vodacom’s Broadband Standard service offers better in-bundle value than MTN, but also sports far higher out of bundle rates. 

For users who seldom exceed their monthly data allowance Vodacom’s Broadband Standard service provides the best value for money, but if you want a bit more freedom on your data usage you will be well advised to use MTN instead.

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