MTN makes 79c rate cut permanent

The aggressive move is bad news for Cell C and could kickstart a new price war in South Africa’s mobile industry.

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MTN has moved to make permanent its 79c/minute prepaid call tariff, greasing the wheels toward a possible price war in South Africa’s mobile industry and piling the pressure on debt-laden rival Cell C.

“MTN South Africa has lodged the required paperwork with [communications regulator] Icasa to permanise (sic) its highly-publicised 79c all-net rate on its PayAsYouGo pay-per-second price plan,” the mobile operator said in a statement on Thursday evening.

“Our customers require certainty that MTN will maintain the most competitively-priced voice tariffs in the industry – right into the foreseeable future. This is why we have acted swiftly to lodge the required paperwork with Icasa, to give our customers surety that this rate is not merely available on a promotional basis, but is part of our long-term pricing strategy,” the company said.

“Effective 7 May 2014, the 79c rate will be a permanent price plan for our PayAsYouGo customers,” said chief marketing officer Brian Gouldie.

MTN reduced its pay-per-second prepaid price-plan to the flat rate of 79c per minute to all networks, on 14 April 2014, charged on a per-second basis.

Its move puts enormous pressure on Cell C, which used to be able to claim that its 99c/minute tariff was the lowest regulated call rate in South Africa.

Free value-adds included

Value of bundleBundle rateSMSes (to any network)DataMTN-to-MTN minutes (any time)Validity (from recharge)
R779c/minute55MB122 days
R1279c/minute1510MB152 days
R1779c/minute3030MB293 days
R3579c/minute10075MB664 days

Cell C has failed to cut its rates, despite a recent high court judgment that resulted in a 20c/minute cut in call termination rates — the fees operators charge each other to carry calls between their networks — until the end of September. Cell C enjoys “asymmetry” in the rates, whereby MTN and Vodacom pay it 44c/minute to carry calls onto it network. It pays 20c/minute for calls sent in the other direction.

MTN said that prepaid customers on alternative price plans (such as its Zone dynamic tariffing scheme and those on its call-per-second plan), are able to migrate to the 79c deal.  — (c) 2014 NewsCentral Media

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  • Davebee

    Maybe I’m misreading the table above but the headline clearly states 79c rate cut is PERMANENT yet the table price seems to be measured in 2 days and 4 days segments.
    What happens after 2, 3, 4 days?
    What does the MTN customer believe?
    Is this inflationary permanent we are witnessing here?

  • Gerrit Kellerman

    I’m not sure how MTN’s system works. On CellC you only lose the “Supacharge” minutes, sms’s and data after a certain period, but your airtime remains. If I was a MTN contract customer I would be furious, because you still pay the higher call rates, as this is only for prepaid.

  • Taryn De Bruin

    The rate cut is available to all prepaid users on any recharge amount. That table just shows new recharge voucher denominations available. Anyone, new or existing, on MTN prepaid per second tariff receives the 79c flat rate.

  • che

    As i understand, there is a price plan called Pay PEr Second and if you join that (it is the one that you are on when you buy and activate an MTN sim), you get 79c rate for all your calls permanently (as long as you are on that price plan). Subscribers from other price plans can either move to this price plan and get 79c, or buy the bundles as mentioned in the table which is valid for 3-4 days. People on 79c price plan can also buy the bundles if u want free minutes, data etc as in the table.

  • kevrob

    The additional “free value-adds” i.e. SMSs, Data and MTN to MTN minutes expire after the 2,3 or 4 days. The airtime validity is not affected.

  • Davebee

    Thanks kevrob. I will make a turn at my local MTN outlet today. All the same I suppose we should be grateful for a bit of competition in this licence-to-print-money industry.
    Pretty soon it will be more price wise to go mobile only and drop that FIXED Telkom land line with its line rental burden.

  • Marcan

    One can change prepaid price plan to the new Pay per second 79 cts scheme by *141*4*4#.
    I still had an unused prepaid SIM idling around somewhere, and found out on testing it, MTN gave me R 20 free airtime. Now changed it to this new Pay per second price plan.

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