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SA’s best and worst cellphone contracts

Johannesburg - Telkom is leading South Africa’s mobile phone contract market pack when it comes to the best deals, says US-based telecom pricing research firm Tarifica.

Tarifica has ranked the consumer value of every post-paid mobile plan contract in South Africa since July 2014.

Tarifica uses what it calls a “comprehensive algorithm” that “evaluates every mobile plan feature (including usage allotments, geographic coverage, data speeds, value added features and promotional elements) and weighs them against the plan’s total costs to determine ultimate consumer value”.

Telkom, which is a minnow in South Africa’s mobile phone market with just over two million subscribers, has undercut bigger rivals with cheaper contracts in a bid to win market share. And from July to October this year, Tarifica says Telkom topped South Africa’s mobile phone contract space in terms of best value prepaid plans.

Tarifica said that after the SA cellphone contracts were scored, the plans were divided into two categories, “with phone” and “SIM only”, and then subdivided into five price segments, creating a total of ten groups.

Tarifica has also furnished more detailed results for the October scores, which can be viewed below, and that outline price points such as monthly rental fees of R100 or less.

“Of these groups, Telkom’s plans led the field in October, achieving Tarifica ‘Top Value Plan’ status in five groups. Cell C rated second best, winning three of the ten price segments,” said Tarifica in a statement.

“MTN and Virgin Mobile were each able to earn just one ‘Top Value Plan’ while Vodacom, after offering the top overall SIM Only plan in the market a mere two months ago, was shut out entirely,” added the research company.

Tarifica’s South Africa Analyst, Melissa Mascarenhas, said in a statement that “the addition of unlimited on-net data to Telkom’s SmartPlan 100, 200 and 500 plans with the purchase of a phone considerably enhanced the already solid consumer value of these offers”.

“There simply is no similarly priced alternative in South Africa that includes the volume of allowances available with these plans,”  she said.

Local analyst agrees with findings

Technology commentator and CEO of Strategy Worx, Steven Ambrose, told Fin24 that Tarifica’s report on SA’s cellphone contract space gives consumers an easy way to understand the “relative benefit of one plan over another".

Ambrose also said his research firm’s own analysis confirms Tarifica’s study on the local cellphone contract market.

“Strategy Worx’ own analysis has clearly shown that Telkom does offer the most bang for the buck in mobile plans in South Africa followed by Cell C then Vodacom with MTN coming last in value,” Ambrose told Fin24.

“Consumers also need to take coverage and network quality into account apart from simple cost considerations in choosing the most appropriate provider,” he said.

Do you agree? Send us your list of the best and worst in cell contracts. You could get published.

Read the Tarifica scores below:

3. Tarifica Score South Africa Market Leaders - October 2014

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