Melon Mobile uncapped controversy

Mobile virtual network operator (MVNO) Melon Mobile will reintroduce unlimited minutes and SMSs on its uncapped plans following backlash from customers after it quietly started hard-capping these allocations.

The MVNO, which roams on MTN’s network, launched its “Unlimited” calling plans in November 2023. These packages promised a capped allocation of data and “unlimited” all-network voice minutes and SMSs.

With pricing starting at R199 per month for 5GB monthly mobile data, Melon Mobile had the most affordable uncapped calling plan in South Africa.

Melon Mobile also offers 10GB and 15GB options for the same prices as the MTN Superflex plans with the same allocations.

However, multiple Melon Mobile customers contacted MyBroadband to complain that the calling and SMS allocations were, in fact, not unlimited or uncapped.

They explained that their apps’ showed they had a limited number of minutes and SMS. After consuming these, they would need to contact Melon Mobile to extend the allocations.

Melon Mobile Unlimited 5GB plan with limited voice minutes and SMSs in dashboard.

Melon Mobile told MyBroadband it did not have a mechanism to automatically allocate unlimited data when it launched the offering.

Therefore, it loaded subscriber accounts with the maximum number of voice minutes and SMSs that it could.

“The promo went live with this mechanism in place because it was the only option available to us,” Melon Mobile said. “We are working on a new mechanism that will automatically allow unlimited allocations”.

In what was implied to be an interim measure, it required that customers talk to its contact centre to get additional minutes and SMSs if they exceeded their allocations.

The MVNO would then investigate a customer’s usage to determine whether the plan had been abused for purposes other than personal usage — such as conducting business.

However, instead of adding automatic unlimited calling and SMS allocations, the MVNO has put hard limits on these resources.

In March 2024, it rebranded the plans to “uncapped” and amended the terms and conditions with a table setting out specific limits for minutes and texts on each package, as pictured below.

In response to customer complaints and queries from MyBroadband about the changes, several of the company’s support agents said that it applied a fair usage policy (FUP) on the “uncapped” voice minutes and SMSs.

FUPs are common for uncapped plans in the telecommunications industry, particularly when it comes to mobile packages.

Packages with an FUP are subject to throttling of data speeds to prevent the cellular network’s capacity being abused.

For example, an uncapped fixed-5G package might be throttled down to 1Mbps speeds after the first 1TB of consumption in a month.

However, a package is only labelled as uncapped when a user can keep consuming data regardless of how much they consume.

Melon Mobile’s website continued explicitly advertising the five packages in question with “Uncapped” minutes and “Uncapped” texts (SMSs).

MyBroadband asked Melon Mobile why it was still advertising these plans as uncapped when it had introduced hard limits on the minutes and SMSs.

The MVNO said it decided to scrap the hard limits and revert to the same policy it implemented after the initial promo period, following feedback from its customers and the market.

From Monday, 13 May 2024, customers will again be able to request their minutes be topped up at no charge after reaching certain usage thresholds.

“As long as they have adhered to our fair usage guidance, which we use to evaluate any signs of unintended usage, particularly business-related activities, and there’s no violation of our terms and conditions, they can continue to enjoy our services without any issues,” the company said.

Melon Mobile also said it planned to implement its automatic abuse protection system by the end of May.

“This system will eliminate the necessity for customers to go into chat to request additional minutes, as they will be automatically topped-up,” the operator said.