MTN surprised the market with its Black Friday and Fri-Yay deals, which offered new contract subscribers tremendous value.
The deals gave subscribers an additional 50GB of data per month and 10,000 MTN-to-MTN minutes per month for free for the duration of select 24-month contracts.
The value of the data alone is close to R3,000 per month, which raises the question: Why has MTN launched this promotion?
One of the reasons is to offer more value to contract customers who have felt left out with all the prepaid promotions running.
Larry Annetts, Chief Consumer Officer at MTN South Africa, said these promotions are part of the company’s mission to “make our customers’ lives a whole lot brighter”.
Annetts said MTN’s postpaid customers have always said their promotions are focused on prepaid.
“We have listened to customer feedback and came up with a compelling proposition that meets and exceeds our customers’ expectations.”
Great network improvement underpins the free data promotion
Due to competitive reasons, MTN could not reveal in-depth details about the business model behind the 50GB/10,000 minutes promotion.
Annetts said extra network capacity has played a role in enabling the company to launch more aggressive promotions, though.
“In the previous year, MTN committed R12 billion in capital expenditure in order to fund network optimisation and upgrades.”
“We have seen significant and visible improvements in our network since then, and we are therefore using this promotion to give our customers the opportunity to experience the improved network speeds and the seamless experience on 4G.”
He said MTN is confident in the milestones it has achieved in improving the network.
“We cannot think of a better way to showcase our network superiority than by letting our subscribers experience it for themselves and judge us not on marketing talk, but on personal experience.”
Annetts said the network improvements have been verified by independent tests, including the MyBroadband Speedtest, which found that MTN had the fastest network in South Africa.
Positive response to the promotion
Annetts said they have received an overwhelmingly-positive response from new and existing customers on the promotion.
“We have met and exceeded the targets we had set for ourselves. We believe that this promotion sets MTN apart in the market,” he said.
“The positive feedback we have received thus far emboldens us to work harder to develop and introduce innovative and cutting-edge solutions to the market.”