Why no data price cuts, Vodacom?
Mobile data prices are under the spotlight following the #DataMustFall campaign launched by Tbo Touch, CEO of TouchCentral FM.
Touch has given mobile networks 30 days to make a change to their mobile data prices, threatening to “move our subscription to the network that cares about its customers”.
Communications analyst Kerwin Lebone told the Sowetan the outcry over high data prices through the #DataMustFall campaign is “spot on”.
Lebone said “compared with countries in the Middle East‚ Europe‚ Asia, and the Americas‚ data in South Africa is the most expensive”.
The lack of competitive mobile data prices is not surprising, considering that prices have not decreased over the last few years.
From December 2004 to March 2013, there were regular mobile data price cuts – which saw the price for 1GB of data drop from R599 to R69.
Between April 2013 and now, though, there have not been price reductions. In fact, Vodacom’s mobile data contract prices increased for the first time in history in May 2015.
The chart below shows the price of 1GB of mobile data on contract from Vodacom from 2004 to today.
Vodacom explains
Vodacom was asked why its data bundle prices have not decreased since March 2013, but the company did not answer the question.
Instead, Zunaid Mahomed, managing executive for product and commercial management at Vodacom, punted their personalised “Just 4 You” offers.
“Our personalised Just 4 You offers, launched in September 2015, have contributed to a 16.9% reduction in effective call rates and a 13.6% reduction in the average effective price of data in 2015,” said Mahomed.
Asked whether there are plans to reduce data bundle prices, Vodacom provided a classic example of corporate babble.
“In the normal course of business we periodically review our product propositions to ensure that they are in line with the needs of our customers and that they make financial sense to the business,” said Mahomed.
“As part of this process, when it is deemed necessary, we will implement appropriate recommendations.”
More on mobile data
#DataMustFall campaign against mobile data rip-off
Cell C to shake up data prices
Loading ...