Close Menu
TechCentralTechCentral

    Subscribe to the newsletter

    Get the best South African technology news and analysis delivered to your e-mail inbox every morning.

    Facebook X (Twitter) YouTube LinkedIn
    WhatsApp Facebook X (Twitter) LinkedIn YouTube
    TechCentralTechCentral
    • News
      The clock is ticking on South African banks' biggest advantage

      The clock is ticking on South African banks’ biggest advantage

      9 June 2026
      Apple finally overhauls Siri in late bid to catch AI rivals - Tim Cook

      Apple finally overhauls Siri in late bid to catch AI rivals

      9 June 2026
      OpenAI filing sets up a trio of trillion-dollar tech IPOs

      OpenAI filing sets up a trio of trillion-dollar tech IPOs

      9 June 2026
      Absa goes quiet on its MVNO plans - Nick Nkosi

      Absa goes quiet on its MVNO plans

      8 June 2026
      How AI agents could rewrite the rules of South African banking - Chipo Mushwana

      How AI agents could rewrite the rules of South African banking

      8 June 2026
    • World
      Meta declares war on Israeli spyware firm

      Meta declares war on Israeli spyware firm

      8 June 2026
      Meta takes on OpenAI and Anthropic in enterprise AI

      Meta takes on OpenAI and Anthropic in enterprise AI

      4 June 2026
      AI demand sparks 'chipflation' warning

      AI demand sparks ‘chipflation’ warning

      4 June 2026
      Astronomers discover exoplanets with magnetic fields

      Strange winds reveal magnetic fields on distant ‘hot Jupiters’

      2 June 2026
      AI giant Anthropic files for landmark US listing

      AI giant Anthropic files for landmark US listing

      1 June 2026
    • In-depth
      Every plug-in hybrid on sale in South Africa, ranked by price - Lamborghini Temerario

      Every plug-in hybrid on sale in South Africa, ranked by price

      7 June 2026
      What Wi-Fi 8 will mean for wireless networks

      What Wi-Fi 8 will mean for wireless networks

      1 June 2026
      Alfa's electric rebel - Alfa Romeo Junior Elettrica Veloce

      Alfa’s electric rebel

      29 April 2026
      Africa switches on as Europe dims the lights

      Africa switches on as Europe dims the lights

      9 April 2026
      The biggest untapped EV market on Earth is hiding in plain sight

      The biggest untapped EV market on Earth is hiding in plain sight

      1 April 2026
    • TCS
      Watts & Wheels S1E5: 'A Bentley of the bush and a car that swims'

      Watts & Wheels S1E5: ‘A Bentley of the bush and a car that swims’

      8 June 2026
      TCS | Charge's R1.8-billion bet on an off-grid EV future - Charge chairman Joubert Roux

      TCS | Charge’s R1.8-billion bet on an off-grid EV future

      18 May 2026
      TCS+ | The Up&Up Group on the hidden cost of AI - Jason Harrison

      TCS+ | The Up&Up Group on the hidden cost of AI

      13 May 2026
      Michael Rossouw

      TCS+ | The retirement decision most South Africans get wrong

      6 May 2026
      TCS | The Cape Town start-up listening for TB with AI - Braden van Breda

      TCS | The Cape Town start-up listening for TB with AI

      4 May 2026
    • Opinion

      Clashing judgments leave South Africa’s crypto law unsettled

      2 June 2026
      The author, Pambos Soteriades

      The trap inside South Africa’s banking MVNO boom

      1 June 2026
      The hidden cost of social media age bans is everyone's privacy - Petrus Potgieter

      The hidden cost of social media age bans is everyone’s privacy

      29 May 2026
      Treasury's crypto crackdown is a betrayal of Mandela's promise - Duncan McLeod

      Treasury’s crypto crackdown is a betrayal of Mandela’s promise

      22 May 2026
      South Africa is sleepwalking into another AI policy failure - Celeste Labuschagne

      South Africa is sleepwalking into another AI policy failure

      20 May 2026
    • Company Hubs
      • 1Stream
      • Africa Data Centres
      • AfriGIS
      • Altron Digital Business
      • Altron Document Solutions
      • Altron Group
      • Arctic Wolf
      • Ascent Technology
      • AvertITD
      • BBD
      • Braintree
      • CallMiner
      • CambriLearn
      • CM Telecom
      • Contactable
      • CYBER1 Solutions
      • Digicloud Africa
      • Digimune
      • Domains.co.za
      • ESET
      • Euphoria Telecom
      • HOSTAFRICA
      • Incredible Business
      • iONLINE
      • IQbusiness
      • Iris Network Systems
      • Kaspersky
      • LSD Open
      • Mitel
      • NEC XON
      • Netstar
      • Network Platforms
      • Next DLP
      • Ovations
      • Paracon
      • Paratus
      • Q-KON
      • SevenC
      • SkyWire
      • Solid8 Technologies
      • Telit Cinterion
      • Telviva
      • Tenable
      • Vertiv
      • Videri Digital
      • Vodacom Business
      • Wipro
      • Workday
      • XLink
    • Sections
      • AI and machine learning
      • Banking
      • Broadcasting and Media
      • Cloud services
      • Contact centres and CX
      • Cryptocurrencies
      • Education and skills
      • Electronics and hardware
      • Energy and sustainability
      • Enterprise software
      • Financial services
      • HealthTech
      • Information security
      • Internet and connectivity
      • Internet of Things
      • Investment
      • IT services
      • Lifestyle
      • Motoring
      • Policy and regulation
      • Public sector
      • Retail and e-commerce
      • Satellite communications
      • Science
      • SMEs and start-ups
      • Social media
      • Talent and leadership
      • Telecoms
    • Events
    • Advertise
    TechCentralTechCentral
    Home » Opinion » Craig Wilson » Smoke and mirrors in contract plans

    Smoke and mirrors in contract plans

    By Craig Wilson9 July 2012
    Twitter LinkedIn Facebook WhatsApp Email Telegram Copy Link
    News Alerts
    WhatsApp

    Vodacom announced a new set of smartphone contract tariff plans at the weekend under the heading “all-in-one Smart Plans”. Unfortunately, Vodacom seems intent on continuing to offer consumers packages that are founded on obfuscation and copious fine print rather than simplicity and transparency.

    Like most contracts from most if not all operators, they give consumers things they really don’t need and charge them for the privilege. And the small print is enough to make one’s head spin.

    Vodacom’s “smart” tariffs include voice, SMS and data allowances and range from R135/month to R1 700/month for 24 months. The packages are clearly a response to Cell C’s recent contract price cuts, which include variable-length contracts and the ability to add on data and SMS bundles to create packages that fit.

    Aside from the entry-level “Smart Light” package, Vodacom’s other three new packages offer a selection of minutes that can be used at any time to any network, along with “promotional” minutes that apply only to calls to other Vodacom customers. The promotional minutes don’t carry over, but the regular minutes do and remain valid until the end of the following month.

    Though it’s difficult to compare the Vodacom and Cell C offerings on a like-for-like basis because the bundled minutes don’t correspond exactly, the pricing between the two operators’ offerings is fairly similar once you cut through the Vodacom clutter. However, when it comes to clarity, the operators remain worlds apart.

    Pricing is similar if one looks at the minutes that are applicable to any network at any time. Vodacom would no doubt prefer that consumers compare its 810-minute “Smart Advanced” package with Cell C’s “Straight Up 800” package, but of those 810 minutes on the Vodacom deal, only 450 apply to calls to any network, with the rest for calls to other Vodacom subscribers only. The minutes on Cell C’s offer apply to any network.

    Vodacom’s Smart Light package has all sorts of things wrong with it. For a start, its 75 core bundled minutes are for use only in off-peak times. And they’re billed per minute. It’s astounding that mobile operators are even allowed to bill on a per-minute basis anymore. It’s good for operators but terrible for consumers.

    As if that wasn’t bad enough, Smart Light customers can look forward to a rate of R2,70/minute for out-of-bundle calls to networks other than Vodacom or to land lines. Considering that the operator pays a lower interconnect fee to Telkom than it does to other mobile operators calls to fixed lines should under no circumstances be the same rate as calls to other mobiles.

    All in all, this is another example of an operator baffling consumers with conditions and clauses rather than offering simplicity. Vodacom is relying on the fact that most people are too lazy to undertake the burden of changing networks. Cell C is trying to make its offerings attractive enough to warrant the effort.

    That’s not to say Cell C is perfect. Like the other operators, it’s in the business of turning a profit. Although its new contract offerings — where you can pick and choose the contract terms and products that are right for you — are innovative, it still saddles customers with potentially unnecessary allowances like hundreds of SMSes — if you want 400 minutes of talk time you have to take 400 SMSes and 400MB of data, too. You can add data or SMSes, but you can’t remove them.

    Of course, you can opt for fewer minutes and SMSes and then top up the data, and I wouldn’t be surprised if the operator sees this happening increasingly as customers move to data-based services and away from voice and SMS.

    Ultimately, more times than not contracts result in consumers paying for features they don’t use. Why? So that they can get the latest handset and remove the upfront cost by stretching it out over two years.

    Essentially, contracts allow people to acquire handsets on a hire-purchase-type model and tempt them at the end of the period with something new and shiny, in exchange for locking them in for a further two years. Most of us wouldn’t buy an appliance or a piece of furniture on hire-purchase unless we absolutely had to, yet we have no qualms about doing so with a mobile phone. It’s peculiar behaviour.

    My advice? If you want to side-step the fine print and pitfalls of mobile-phone contracts, there’s only one solution: buy your handset for cash and then go onto prepaid or take a contract that doesn’t include a handset. You’ll save a fortune, guaranteed. And you won’t need an actuary to help you understand how your cellphone contract works.  — (c) 2012 NewsCentral Media

    • Craig Wilson is TechCentral deputy editor
    Follow TechCentral on Google News Add TechCentral as your preferred source on Google


    Cell C Craig Wilson Vodacom
    WhatsApp YouTube
    Share. Facebook Twitter LinkedIn WhatsApp Telegram Email Copy Link
    Previous ArticleApple iPhone coming to Cell C
    Next Article A capitalist’s case for nationalising Telkom

    Related Posts

    The clock is ticking on South African banks' biggest advantage

    The clock is ticking on South African banks’ biggest advantage

    9 June 2026
    In South Africa, the bundle is the new battleground

    In South Africa, the bundle is the new battleground

    5 June 2026
    The real cloud challenge isn't adoption – it's doing it well

    The real cloud challenge isn’t adoption – it’s doing it well

    5 June 2026
    Company News
    ASUS PE1100N – a compact industrial workhorse built for the realities of edge AI

    Built for the factory floor: inside the ASUS PE1100N edge AI computer

    9 June 2026
    Entries open for Everlytic's You Mailed It Email Marketing Awards 2026

    Entries open for Everlytic’s You Mailed It Email Marketing Awards 2026

    8 June 2026
    Finance Transformation Africa charts blueprint for borderless finance

    Finance Transformation Africa charts blueprint for borderless finance

    8 June 2026
    Opinion

    Clashing judgments leave South Africa’s crypto law unsettled

    2 June 2026
    The author, Pambos Soteriades

    The trap inside South Africa’s banking MVNO boom

    1 June 2026
    The hidden cost of social media age bans is everyone's privacy - Petrus Potgieter

    The hidden cost of social media age bans is everyone’s privacy

    29 May 2026

    Subscribe to Updates

    Get the best South African technology news and analysis delivered to your e-mail inbox every morning.

    Latest Posts
    The clock is ticking on South African banks' biggest advantage

    The clock is ticking on South African banks’ biggest advantage

    9 June 2026
    ASUS PE1100N – a compact industrial workhorse built for the realities of edge AI

    Built for the factory floor: inside the ASUS PE1100N edge AI computer

    9 June 2026
    Apple finally overhauls Siri in late bid to catch AI rivals - Tim Cook

    Apple finally overhauls Siri in late bid to catch AI rivals

    9 June 2026
    OpenAI filing sets up a trio of trillion-dollar tech IPOs

    OpenAI filing sets up a trio of trillion-dollar tech IPOs

    9 June 2026
    © 2009 - 2026 NewsCentral Media
    • Cookie policy (ZA)
    • TechCentral – privacy and Popia

    Type above and press Enter to search. Press Esc to cancel.

    Manage consent

    TechCentral uses cookies to enhance its offerings. Consenting to these technologies allows us to serve you better. Not consenting or withdrawing consent may adversely affect certain features and functions of the website.

    Functional Always active
    The technical storage or access is strictly necessary for the legitimate purpose of enabling the use of a specific service explicitly requested by the subscriber or user, or for the sole purpose of carrying out the transmission of a communication over an electronic communications network.
    Preferences
    The technical storage or access is necessary for the legitimate purpose of storing preferences that are not requested by the subscriber or user.
    Statistics
    The technical storage or access that is used exclusively for statistical purposes. The technical storage or access that is used exclusively for anonymous statistical purposes. Without a subpoena, voluntary compliance on the part of your Internet Service Provider, or additional records from a third party, information stored or retrieved for this purpose alone cannot usually be used to identify you.
    Marketing
    The technical storage or access is required to create user profiles to send advertising, or to track the user on a website or across several websites for similar marketing purposes.
    • Manage options
    • Manage services
    • Manage {vendor_count} vendors
    • Read more about these purposes
    View preferences
    • {title}
    • {title}
    • {title}