Value more important than price: 8ta

 ·17 May 2012

8ta said that it will not respond to Cell C and Vodacom’s prepaid price cuts, arguing that, whilst competing on price ultimately benefits the customer in the short term, “competing on value is more sustainable in the long term”.

Cell C unveiled their ‘99 Cents For Real’ service yesterday (16 May 2012) slashing off-net and peak call tariffs to 99c per minute. Cell C also reduced the rate of MMS messaging to 99c per message and cut prepaid data rates to 99c per MB.

Vodacom also announced their Freedom 99 yesterday, offering prepaid calls to all networks at 99 cents per minute.

However, 8ta is not following suit. “8.ta is not a ‘me too’ mobile provider and believes in a differentiated strategy. This can be seen in our ground breaking and technologically advanced prepaid offer where we reward customers with free minutes just for receiving calls,” said Amith Maharaj, senior managing executive at Telkom Mobile.

“Our customers enjoy unique benefits from our current prepaid offering of earning free minutes, just for receiving calls, which they can use to call any SA network at any time.”

Maharaj added that 8ta’s data and SMS offerings are very competitive and have set the benchmark for quality and price.

“We are busy reviewing our prepaid voice offerings but rest assured it won’t be based on the current 99c tariff,” Maharaj concluded.

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