Why Cell C hiked its data and contract prices

Cell C recently announced price changes to its prepaid and contract packages, due to take effect from 1 February 2017.

As part of the price changes, Cell C stated there would also be usage amendments to prepaid and data products.

Cell C told MyBroadband that there were many factors which contributed to the price increases, including a weak rand against the US dollar.

“Rising inflation, the depreciation of the rand against the US dollar, and uncertainty in the industry over the allocation of spectrum have all contributed to an increase in the cost to provide mobile services to consumers,” said Cell C.

The company said the biggest input cost in its business was network equipment, which was bought from international vendors.

“This equipment is priced in US dollars and any change in the rand has a significant impact on a company’s capital expenditure and operating expenses.”

Cell C said these rising costs associated with supplying mobile network services necessitated the price increases – despite its best efforts to keep rates unchanged.

“We have notified affected customers via SMS about the price changes and information is also published on our website.”

“Customers who signed up for any of the Epic or Pinnacle contracts and who are still within their 24-month contract will be exempt from the price increase,” said Cell C.

The company said its products still remain competitive and will “continue to find ways to bring customers more value”.

“Customers are also encouraged to buy data bundles to benefit from very low in-bundle data rates.”