Telkom launched its data-centric FreeMe contract packages in July, which offer aggressive prices and simplify its product offering.
The new products will put pressure on MTN, which lost subscribers to competitors over the last six months as it could not match promotional pricing from Vodacom.
When MTN South Africa CEO Mteto Nyati was asked by Business Day TV whether they were going to get into a price war with Telkom, he said definitely not.
“We have analysed their offering, we understand what it is all about, we can understand how limited it is,” said Nyati.
“Actually, we are talking about activations that are SIM-only activations, when the rest of the big market is about activations on SIM and handsets.”
Telkom responded to Nyati’s comments, stating that the premise of its FreeMe packages is to offer consumers freedom of choice and great value.
“For this reason, we have specifically offered the packages on SIM-only, postpaid, and device-inclusive options for customers to choose which option best suits them,” said Telkom.
Telkom said it has also allowed its customers to take a FreeMe package mid-contract.
“We have been deliberate in our efforts to liberate our customers from everything they hate about their networks,” said Telkom.
With Telkom offering device-inclusive packages, it is not clear why Nyati said Telkom’s FreeMe activations will be SIM-only.
MyBroadband asked MTN to explain Nyati’s comments, but the company did not respond.