Cell C ramps up data prices
Cell C has informed its subscribers that it is increasing its out of bundle data rates will change on 1 May 2014.
According to Cell C’s website the company is increasing its out of bundle rates for its smartdata bundles from 15c per MB to 99c per MB – an increase of 560%.
Cell C first reduced its standard data rate to R0.15c per MB for in- and out-of-bundle usage across its entire data product portfolio.
At the time, the company said that it is committed to “offering customers deals that are affordable, transparent and simple”.
“What you see is what you get. No more nasty surprises when you go out of bundle. You will pay one low rate for in-bundle and out-of-bundle usage,” said Cell C CEO, Alan Knott-Craig.
This has now changed, but it is not clear why the company is increasing its out of bundle rates.
Asked to comment on the changes, Cell C provided the following statement:
Over the last few months Cell C has made adjustments to its data bundles, which now offer customers lower in-bundle rates (from as little as 2c/MB up to a maximum of 15c/MB). Cell C has designed these packages so that from the lowest usage to the highest usage customers get some of the most competitive in-bundle rates in the market. Customers are encouraged to purchase a bundle to benefit from our low in-bundle rates, with the out-of-bundle rate at 99c/MB.
Cell C smartdata prices
The move follows declarations by Cell C in court papers in the MTN versus Icasa court battle around MTRs, that without certainty and a positive outcome in the MTR situation in the country, the operator would have no alternative but to increase retail prices.
In the court documents, Cell C said: “The only realistic alternative available to Cell C in the event that there is no certainty around the effective date of the 2014 Regulations, would be for Cell C to increase retail tariffs more in line (although still below) those of the dominant operators.”
The operator also bemoaned the group’s loss in revenue market share in South Africa, which has declined since 2010, when Icasa’s MTR regulations were first introduced.
Cell C said that its total service revenue market share was approximately 10% (June-October 2013).
“When the 2010 Regulations were first introduced, Cell C’s service revenue market share was approximately 10.3% (December 2010),” the operator said.
“Cell C believes it has led the way in creating a more dynamic retail pricing environment. However, it has made considerable financial sacrifices in an attempt to grow revenue market share and so to increase its scale.”
The operator, however, argued that it has still not been able to grow enough to enable it to build sufficient economies of scale, and to acquire a larger revenue share of the market.
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