Vodacom CEO Shameel Joosub has explained that mobile data expiry and high out-of-bundle rates are legacy issues which need to be addressed.<\/p>\n
Speaking to eNCA\u2019s Taking Stock, Joosub said the cellular industry in South Africa evolved to create lower in-bundle rates and higher out-of-bundle rates.<\/p>\n
He said that it is possible to sell bundled data at a reduced price because of breakage, where a user does not use all their data in the allotted time period.<\/p>\n
\u201cFor example, if you use the Gautrain and you buy the 7-day package, you get a discount,\u201d he said.<\/p>\n
\u201cThis discount is possible because the Gautrain already calculated that, on average, consumers only use it for five days per week.\u201d<\/p>\n
Data bundles in the mobile industry work the same, where breakage on hourly, daily, weekly, and monthly data bundles allows for big discounts on the effective price of data.<\/p>\n
Joosub said consumer behaviour and demands have changed in recent years, and they are now adapting their products to accommodate these demands.<\/p>\n
He said they are building a new system where customers will be warned when their in-bundle data is set to expire, and they will be given three options:<\/p>\n
This model will empower consumers to make a choice which suits them, he said.<\/p>\n
Joosub also stated that additional spectrum is sorely needed to accelerate the decline of data prices in South Africa.<\/p>\n
He explained that they are not using their R9 billion annual network investment optimally to deliver data at a lower rate.<\/p>\n
This is because the government is not providing the industry with additional spectrum, which forces them to re-farm 2G and 3G spectrum for their 4G network rollout.<\/p>\n
If the government provides operators with more spectrum, it will allow them to significantly reduce the cost to deliver data, which in turn will result in lower prices to consumers.<\/p>\n