Poor users pay 80 times more than the rich, and cellular companies’ explanations are not really convincing …
An analysis of cellular companies’ data prices shows that prepaid users buying small mobile data bundles pay around R136 per gigabyte , but those who can afford monthly subscription contracts for huge bundles pay as little as R1.65 per GB.
“MTN offers a wide range of products tailored to different customer segments, including both prepaid and contract options. Prepaid pricing is often influenced by the short-term nature and smaller volumes of purchases, whereas contract customers commit to higher volumes over longer periods, allowing for discounted rates through economies of scale.”
“Prepaid pricing reflects the flexibility and convenience it offers to customers who need to stay in control of their spending. While prepaid users may be more price-sensitive, they also display a ‘need-now’ purchase pattern. This pattern caters for convenience offers such as hourly, daily, three days and weekly data bundle to match their immediate needs. Prepaid a variety of offers that are personalised based on customer spend pattern and location.
“We recognise concerns about pricing differences between prepaid and contract data. While this reflects common industry pricing models globally, we understand the broader social implications in the South African context. “Customers across income brackets increasingly choose prepaid for its convenience, transparency, and the ability to match spend with lifestyle and usage needs.”
“These contribute to a net higher unit cost in delivering smaller data allocation bundles. Nonetheless, we are actively working with our network partners to reduce disparities through technology and infrastructure innovation and upgrades,” according to Cell C.
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