MTN slashes cell costs

In a move that could provide such a signal, MTN has slashed its cellphone costs by up to 40%.

Though the reduction is only set to affect its prepaid subscribers, an analyst told Fin24 that Vodacom and Cell C could soon follow suit.

"It's not surprising that MTN's move comes shortly after the recent public hearings on cellular pricing. It's expected of Vodacom and Cell C to follow suit," said the analyst.

MTN's introduction of a standard rate to all local networks will see call rates drop to R1.99 per minute (including VAT) for all customers on the Call Per Second package, from the previous price of R3.20.

More cost cuts

"This initial cut in price is all part of MTN's plan to continue reducing costs to our customers in the varied packages on offer and to offer our customers value for money," MTN said in a statement.

MTN's Consumer Segment General Manager Donovan Smith said the group operates in a very competitive environment, and the challenge is for its network to continue providing competitive costs which are on par with what South African consumers can afford.

The new tariff structure will be effective immediately for pre-paid customers on Call Per Second and Call Per Second Plus packages with no special subscription, starter pack or cell number required.

It will be accompanied by the introduction of the PAYG Call per Second package as the default PAYG package for all new activations.

In line with the reduced call costs, MTN introduced a new R10.00 recharge voucher as well. The voucher is currently available in an electronic and logical format and will soon become available in a physical format.

This lower denomination recharge voucher has been introduced as a result of MTN's focus "on what consumers can afford".