MTN reacts in prepaid price war

The operator has introduced a new starter pack after rivals Cell C and Vodacom stepped up their rivalry with new prepaid plans.

Added by Duncan McLeod on 19 February 2013.
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MTN has finally reacted to the price war that erupted this month between Vodacom and Cell C with a new prepaid product that promises free data and SMSes.

Offered as a new starter pack called MTN Mahala, the operator says it offers “added value, including free airtime, Internet bundles and free SMSes for the first six months of use”.

Calls using the Mahala starter pack are billed at per-second rates — unlike Vodacom, which charges per minute — and “guarantees” 20% free MTN-to-MTN airtime value back for recharges of at least R10.

The starter pack also gives MTN customers 10MB of data for R100 or more of airtime recharges per month. They also get five free SMSes for every 15 they send.

The starter pack also provides access to MTN Zone, which offers discounts based on the time of day, location of the user and network load, among other factors.

Without discounts applied, MTN’s peak-time call rate on the Mahala starter pack is R2,59/minute (billed per second) for on-network calls. Off-network calls, for example to Vodacom or Cell C, cost R2,79/minute in peak times. The off-peak rates are R1,19/minute and R1,30/minute for on-net and off-net calls respectively.

MTN’s move comes after rival Vodacom cut the cost of prepaid rates to R1,20/minute (billed per minute) to all networks. Vodacom also announced that users who call other Vodacom numbers for three minutes will get the next 57 minutes free of charge.

Vodacom’s aggressive move came just a week after smaller rival, Cell C, moved to offer prepaid customers free value for recharging.

Cell C customers who recharge with R100 of airtime, for example, are offered 150 free Cell C to Cell C minutes, 150 on-network SMSes and 150MB of data for use within seven days. The operator is even offering unlimited free on-network calls for 30 days for those who recharge with R500 or more.  — (c) 2013 NewsCentral Media

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  • fyad

    Sometimes I confuse MTN for not being able to compete in the race with the others, but I keep forgetting it’s not even in the race. For every ten kilometres run by Cell C and Vodacom, MTN stops its mobility scooter to load up some hotdogs, and calls it progress.

  • http://www.facebook.com/musazwane Musa SoccerCity Zwane

    8ta is so far more ahead of any of these packages on prepaid. You get free minutes to any network, without even buying anything.

  • Charley2

    Please tabulate the rates for us, it will make so much simpler to compare them. just don’t forget 8.ta they also seem give good value for money, maybe even better than Cell C ?

  • http://twitter.com/teen_coach The Teen Coach

    Hauuweeeeeeng Banna!!! *grabs popcorn*

  • Elias Nduvane

    I wish SABC can else compete with Multichoice Africa like Vodacom, Cell C, MTN, Virgin Mobil, Telkom, Either and others introducing prepaid system, imagine owing big amount of money without even watching a single Chanel.

  • kevrob

    So if I recharge R200 with …

    - With Cell C I get R200 airtime (to use at 99c per minute), plus 600 Cell C minutes (valid for 15 days), 600 Cell C SMSs (valid for 15 days) and 600 MB (valid for 15 days)

    - With MTN I get R200 airtime (to use at anywhere between R1.19 – R2.79 per minutes), plus I get R36 to use for MTN calls, MTN SMSs and data (but only valid until midnight on the day of recharge). If I send 15 SMSs on a day, I get 5 free SMSs to use on that day

    - With Vocdacom I can call other Vodacom numbers and only get charged for the first 3min, i.e. R3.60. Calls are charged at R1.20 per minute, but there is no per second billing

    I think that’s a fair comparison of the current offers

  • http://www.facebook.com/people/Nathi-Malume-Tshabalala/1015283654 Nathi Malume Tshabalala

    It’s time to call for an MTN boycott. This rubbish offer is not even meant to be published!

  • realist

    If Cell C only have 15% market share that means the Cell C subscriber only benefits for the discount 15% of the time, The MTN customer only benefits if he buys a new starter pack….(effort) and is in the right spot at the right time. And the Vodacom customer when he “Opts in” 8ta and Telkom mobile seems to be no where

  • http://twitter.com/d0dja Roger Hislop

    MTN just don’t get it. South Africans pay a lot of personal tax — and relatively happily (well, sort of) — because SARS makes it simple, and clear.

    Seriously MTN, why not just make it a little bit more complicated? Why not add a couple more conditions, requirements, exclusions and caveats?

    — >> All right, settle down. Settle down. Now, before I begin the lesson, will those of you who are playing in the match this afternoon move your clothes down onto the lower peg immediately after lunch, before you write your letter home, if you’re not getting your hair cut, unless you’ve got a younger brother who is going out this weekend as the guest of another boy, in which case, collect his note before lunch, put it in your letter after you’ve had your hair cut, and make sure he moves your clothes down onto the lower peg for you.

    If you’re not getting your hair cut, you don’t have to move your brother’s clothes down to the lower peg. You simply collect his note before lunch, after you’ve done your scripture prep, when you’ve written your letter home, before rest, move your own clothes onto the lower peg, greet the visitors, and report to Mr. Viney that you’ve had your chit signed.

  • Omang

    Thats why there is Top TV! Woo Woo Woo!

  • http://www.facebook.com/msmoorad Mahomed Saleem Moorad

    i agree, they have audacity to insult us by advertising crap as something great.
    they should only advertise when they have something worth advertising.

  • Guy Warren

    Hillarious – love it

  • dije

    Depends. Cell-C costs you R1/minute or lets say 99c per minute. Nothing more.

    Vodacom: Tries to hide the fact that they charge you over 30% extra and even worse a 1 second call will cost you R2.59 at least (if you were lucky to only have Vodacom friends). No matter how you look at it; you lose, Vodacom gains.

    MTN: Charges you the moon, no matter how you look at it. To get the so-called special you need to go and get a new SIM-card, change your number and waste your time,

    JUST MOVE TO CELL-C and encourage your friends to do that and then for R500 you can call them as long as you want for FREE.

  • AG

    Amazing article! MTN are highlighting the fact that the average South African is an idiot, complacent and technically challenged and all MTN is doing is exploiting these facts. They are business people and they have realized the average SA is an idiot. They have large database of people who do not have a clue what is happening in the telecommunication arena and they will exploit them to the hilt. Most people do not know about porting, most do not know how much cheaper cell c is compared to MTN, and they are not bothered either. They are used to being shafted and just accept it. Well done MTN for highlighting this fact.

  • http://www.facebook.com/ralekholela.lebohang Ralekholela Lebohang

    Mtn is joking I mean they don’t even come close to vodacom and cellc offerings

  • http://profiles.google.com/gamesbook Derek Hohls

    Took me a half-hour with an MTN consultant to eventually dig out the following facts. They advertise data for 500MB for R50 – simple, right? Er, no. If I want that data usable on my current contract phone (contract with them, that is), I pay R50 and get 75MB. I’d have to buy an entirely new device to make use of the 500MB data offer (which really defeats the whole point). The consultant was not able to offer any convincing explanation of this price “discrepancy”…

  • ps246

    MTN are till expensive and these offering change nothing.

  • Marcan

    100% !! Unfortunately the average SA consumer is terribly poorly informed, and doesn’t even seem to bother. They are for the largest part brainless sheep following the herd. Ayoba !!

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