South Africa’s third mobile operator, Cell C says it will pay new customers up to R10,000 to cancel their contract with rival operators including Vodacom and MTN.
“We will buy your contract out to the value of R10,000” said CEO Jose Dos Santos. “Now we are going to give Vodacom a good smack,” he told journalists at the company’s head office Johannesburg.
“So many South Africans are feeling trapped in long term contracts by their providers that ask for extraordinary cancellation fees for early termination.”
He said that postpaid and TopUp customers can qualify for an amount of between R1,000 and R10,000, plus a new handset, if they sign up for one of seven new EPIC plans.
The new products range from R69 per month through to the unlimited package at R999.
Dos Santos said that customers would only need to go to a Cell C store to determine how much they qualify for.
Cell C said that customers signing up for the EPIC Contract packages will not be subject to any price increases for the duration of their contract.
The group said that its customer base is close to 21 million, up from just under 10 million in 2011.
Data traffic on Cell C’s network has increased by 44%, with data revenues increasing 59% between the first quarter of 2014 and Q1 2015.
Cell C’s chief financial officer Robert Pasley said the majority of the company’s service revenue comes from prepaid subscribers.
Pasley said prepaid spend increased 17% year-on-year, while contract revenue remained flat.
Total service revenue increased 2%, despite a decline in revenue from mobile call termination rates of 18%.
Total revenue increased by 3% year-on-year.