MTN is adjusting its price increases and crediting contract customers that have experienced hikes higher than 5%.
MyBroadband reported that some MTN contract customers’ monthly bills increased by 28% in May.
The high price hikes were caused by applying the increase to the “base plan” and not the price customers pay.
For example, instead of paying R1,089 for 20GB of data (the base plan), the customer sees a price of R199.
MTN does not disclose this base price anywhere. It applies a discount of R890, reducing the advertised price and the amount that appears on customer bills.
However, MTN applied its latest increase to the R1,089 — the base plan — and not the price subscribers pay.
It resulted in increases significantly higher than 5% on the discounted packages for a limited number of customers.
Although the original discounts remained in place, MTN only applied its 5% price escalation to the base prices and not the discount, causing huge price increases.
MTN SA’s Chief Consumer Officer, Mapula Bodibe, said that while this approach is in line with MTN’s terms and conditions, many customers were not aware of their plans’ original base price subscription.
MTN subscribers hit by these price increases expressed their unhappiness, and MTN has now responded to these concerns.
MTN is adjusting and crediting customers that have experienced an increment of higher than 5% in the recent price increases applied to post-paid contracts.
The company has directly engaged impacted subscribers, who make up approximately 8% of the contracted customer base.
“In the spirit of offering our customers the best experience possible, we are voluntarily revising the increases of those who have experienced an increase of more than 5% on their packages,” Bodibe said.
“The number of customers impacted by the higher increase is relatively small, and we are engaging them directly on how the revision and credits will be effected.”
“We will continue to engage with our customers and want to assure them of our commitment to provide products and services that add value to their lives.”
Communication sent to affected subscribers
MyBroadband can confirm that affected subscribers have been contacted about the change. The letter to these subscribers is reproduced below.
On 1 May 2022, we implemented a 5% price increase on your contract subscription, an adjustment that reflected on your most recent bill.
The initial price increase was applied to your base price plan, which is the price of your contract prior to any discounts that were applied to your price plan by MTN, when you signed up for your contract.
This meant that although you would have received a discounted price when you signed-up, the price increase was applied to the original base price plan which resulted in a higher price increase than 5%.
A revised monthly contract subscription
We are committed to treating all our customers fairly and equally, whilst ensuring the best network and service experience for you, which is why we have adjusted the way the price increase is applied to your subscription.
Crediting your account
The adjusted subscription cost will apply to your next bill, and we will credit your account with the difference in the amounts charged. Your next bill will be adjusted to reflect the adjusted price increase.
For more information and assistance please feel free to contact us on 135.
Thank you for giving us the opportunity to demonstrate our pledge of complete transparency and fairness, as we affirm our commitment to providing you with the best service and support from SA’s Best Network.