Are recent postpaid price increases by South African operators justifiable?
Vodacom, MTN and CellC justified recent increases in their postpaid product prices with claims of rising input costs. These price increases have taken the form of increases in monthly subscriptions, out of bundle rates, and the quantity of bundled minutes, SMSs and data. Some plans remain unchanged but most plans face direct or indirect price increases.
A new tool has been developed by Research ICT Africa to analyse postpaid price changes across operators and across Africa taking very diverse postpaid features of products on offer into account. This tool is the Postpaid Value Index (PVI).
The PVI measures the value a customer gets for the monthly subscription price in terms of bundled minutes, SMS’s and data. Table 1 lists the PVI by monthly subscription categories for Vodacom, MTN, CellC and Telkom Mobile. Where there is more than one product per category the one with the highest PVI is selected. The average PVI is based on all contract offerings of the given operator.
Download the complete policy brief: Research ICT Africa Postpaid Policy Brief Q1, 2015