How much it costs to cancel a cellphone contract - TechCentral

How much it costs to cancel a cellphone contract

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Tariffic, the company that analyses the mobile operators’ tariff plans to offer businesses and consumers the best rates based on their requirements, has conducted an analysis of how much it costs to terminate a contract with South Africa’s major mobile providers. And Vodacom does not fare well from a consumers’ perspective.

As part of the company’s latest quarterly “Perfect Package Tracker”, it has reviewed the various cancellation and termination charges that users are expected to pay if they want to end a contract before it expires.

What users are expected to pay depends on a number of factors, including how long is left on their contract, how much they’re paying monthly and the cost of the subsidised handset they received at the beginning of the contract term. In some cases, an administration fee is levied by the service provider to terminate a contract early.

Often the most substantial part of the calculation is the paying back of the cost of the handset, Tariffic said.

Based on its analysis, the company has found that Vodacom is usually the most expensive when it comes to cancellation fees (in three out of four cases), followed by MTN. Cell C and Telkom are usually the cheapest.

Regardless of circumstances, it’s not cheap to terminate a cellphone contract, Tariffic said.

One theoretical user, with just months remaining on a contract, had to pay a minimum of R3 300 or a maximum of R4 852 to terminate their contract. Another user, with 18 months left on their contract, would have to pay anywhere between R9 931 and R15 377.

“The fees you would have to pay for early cancellation show exactly how much you are spending on your cellphone contracts over your contract period. It may not seem too bad on a monthly basis, but it really does add up,” Tariffic said.  — © 2016 NewsCentral Media

See the full report results here (PDF)

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