Vodacom contract prices increase

From 1 May 2015 Vodacom will increase the subscription fees on selected contract price plans, which will affect voice and data customers.

The new prices will apply to Vodacom Smart, uChoose Smart, uChoose Flexi, Top Up, and Mobile Broadband packages.

The price changes are applicable to existing Vodacom customers on these price plans as well as new customers.

Vodacom explained that the average effective price of both voice and data on Vodacom’s network is down by around 50% over the last two years.

“This kind of deflation is unprecedented when compared to other daily expenditure items such as food and electricity,” said Vodacom.

“It also contrasts sharply with the massive increase in investment going into our network, with almost R30 billion spent over the past four years.”

On top of this, Vodacom said, mobile termination rate cuts have had a major impact on their revenue, and costs meanwhile have increased due to among other things electricity supply issues.

“Given the squeeze from both sides, we have had to review our tariff structures in tandem with implementing cost reduction programmes within the company,” Vodacom said.

“Our expectation is that the average effective price per unit of both voice and data will continue to come down, making services more accessible, but that as individual customers consume more voice and data that their overall spend will either be flat or increase.”

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Vodacom contract prices increase