MTN goes cheaper

CHEAPER: ANNOUNCEMENT OF COMPETITIVE ULTRALARGE BUNDLES

The cell network provider drops data costs to match Vodacom’s and Cell C’s.

Change in 1GB monthly bundle cost has realigned pricing with Vodacom’s and Cell C’s.

MTN has announced adjustments to its prepaid data bundles and pricing “in line with customer needs and market trends”, effective March 5.

Pricing has decreased for all monthly data bundles where a direct comparison between the old and new price is possible (it removed some bundle sizes and introduced others).

These price drops range between 7% on the 1GB monthly bundle, to 28% on the 20GB one. On average, pricing has been cut around 20%.

MTN has, however, discontinued the 500MB, 2GB, 5GB and 5MB monthly data bundles.

Price psychology is definitely key to some of the changes. For example, by removing the 500MB monthly bundle, subscribers effectively get 600MB of data for R6 less (R99 vs R105).

However, for “just” R15 more than the old 500MB price, they get 750MB of data.

Similarly, it has discontinued the 2GB monthly bundle, but now offers 3GB for “only” R39 more (R299).

By cutting the price of the 1GB bundle to R149 from R160, it forces typical 1GB customers to choose between paying less for the same amount of data, or R29 more for 50% more data (1.5GB).

Note, the change in pricing to the 1GB monthly bundle has realigned MTN’s pricing with Vodacom’s and Cell C’s. Previously, it was the most expensive.

In the lower end (under 300MB monthly), the price cuts are clearly designed to get subscribers to spend a little more to get more data. For example, a subscriber who previously bought 50MB at R25 is “incentivised” to spend R29 for 100MB.

The operator has also introduced fairly competitively priced ultralarge monthly bundles (30GB, 50GB and 100GB).

MTN has also tweaked its weekly and fortnightly prepaid bundles.

The single fortnightly bundle available (1GB) is now R110 (from R89); it will incentivise its previous subscribers to consider monthly or weekly bundles instead.

All but two weekly data bundles have been discontinued and replaced with new sizes.

For example, the 100MB weekly bundle (previously R15) requires subscribers to choose between paying R12 for 60MB, or R17 for 120MB.

While the effective price per megabyte reduces slightly, the operator is clearly incentivising prepaid subscribers to spend more on data.

The two weekly bundles which haven’t been discontinued – 500MB and 1GB – are now 22% and 8% more expensive, respectively.

Due to the VAT increase on April 1, pricing on all operators will change. Details are due this week.

Hilton Tarrant works at immedia.