Close Menu
TechCentralTechCentral

    Subscribe to the newsletter

    Get the best South African technology news and analysis delivered to your e-mail inbox every morning.

    Facebook X (Twitter) YouTube LinkedIn
    WhatsApp Facebook X (Twitter) LinkedIn YouTube
    TechCentralTechCentral
    • News
      CSIR readies live cybercrime reporting system for banks, telcos

      CSIR readies live cybercrime reporting system for banks, telcos

      7 November 2025
      South African lawyers learn hard lesson in AI fiction

      South African lawyers learn hard lesson in AI fiction

      7 November 2025
      Licence to chill: Eskom's Koeberg cleared to keep humming till 2045

      Licence to chill: Eskom’s Koeberg cleared to keep humming till 2045

      7 November 2025
      Mustek CEO Hein Engelbrecht

      Mustek-backed AI marketplace launched in South Africa

      7 November 2025
      DeepSeek warns of social upheaval from AI - Chen Deli

      China’s DeepSeek warns of social upheaval from AI

      7 November 2025
    • World
      Apple's new Siri will be powered by ... Google

      Apple’s new Siri will be powered by … Google

      6 November 2025
      WEF warns of bubbles in global economy

      WEF warns of bubbles in global economy

      5 November 2025
      Mastercard plots major push into stablecoins

      Mastercard plots major push into stablecoins

      30 October 2025
      Nvidia takes centre stage in US-China trade chess match - Jensen Huang

      Nvidia takes centre stage in US-China trade chess match

      29 October 2025
      Nvidia and Nokia set sights on 6G

      Nvidia and Nokia set sights on 6G

      29 October 2025
    • In-depth
      iOCO's extraordinary comeback plan - Rhys Summerton

      iOCO’s extraordinary comeback plan

      28 October 2025
      Why smart glasses keep failing - no, it's not the tech - Mark Zuckerberg

      Why smart glasses keep failing – it’s not the tech

      19 October 2025
      BYD to blanket South Africa with megawatt-scale EV charging network - Stella Li

      BYD to blanket South Africa with megawatt-scale EV charging network

      16 October 2025
      MultiChoice DStv

      As DStv turns 30, it faces its toughest test yet

      6 October 2025
      AMD, OpenAI alliance marks seismic shift in global AI chip race

      AMD, OpenAI alliance marks seismic shift in global AI chip race

      6 October 2025
    • TCS
      TCS | Why Altron is building an AI factory - Bongani Andy Mabaso

      TCS | Why Altron is building an AI factory in Johannesburg

      28 October 2025

      TCS+ | Videsha Proothveerajh on Vodacom Business’s new approach to enterprise technology

      28 October 2025
      TCS | The company building a 'living computer' with human cells - Fred Jordan FinalSpark

      TCS | The company building a ‘living computer’ with human cells

      23 October 2025
      TCS | Why South Africans are starting to spend crypto, not just trade it

      TCS | Why South Africans are starting to spend crypto, not just trade it

      22 October 2025
      TCS+ | Managing Sims, saving money: how MSB Micro keeps businesses connected

      TCS+ | Managing Sims, saving money: how MSB Micro keeps businesses connected

      22 October 2025
    • Opinion
      AI takes the throne - Brian Hungwe

      AI takes the throne

      6 October 2025
      The author, Business Leadership South Africa CEO Busi Mavuso

      Trump tariffs and diplomatic missteps push Agoa off the cliff

      6 October 2025
      Duncan McLeod

      Why Capitec should buy Blu Label

      1 October 2025
      AI takes the throne - Brian Hungwe

      AI boom puts Africa at a crossroads

      14 September 2025
      A smarter approach to digital transformation in ICT distribution - Andrew Harris

      A smarter approach to digital transformation in ICT distribution

      15 July 2025
    • Company Hubs
      • Africa Data Centres
      • AfriGIS
      • Altron Digital Business
      • Altron Document Solutions
      • Altron Group
      • Arctic Wolf
      • AvertITD
      • Braintree
      • CallMiner
      • CambriLearn
      • CYBER1 Solutions
      • Digicloud Africa
      • Digimune
      • Domains.co.za
      • ESET
      • Euphoria Telecom
      • Incredible Business
      • iONLINE
      • Iris Network Systems
      • LSD Open
      • NEC XON
      • Netstar
      • Network Platforms
      • Next DLP
      • Ovations
      • Paracon
      • Paratus
      • Q-KON
      • SevenC
      • SkyWire
      • Solid8 Technologies
      • Telit Cinterion
      • Tenable
      • Vertiv
      • Videri Digital
      • Vodacom Business
      • Wipro
      • Workday
      • XLink
    • Sections
      • AI and machine learning
      • Banking
      • Broadcasting and Media
      • Cloud services
      • Contact centres and CX
      • Cryptocurrencies
      • Education and skills
      • Electronics and hardware
      • Energy and sustainability
      • Enterprise software
      • Financial services
      • Information security
      • Internet and connectivity
      • Internet of Things
      • Investment
      • IT services
      • Lifestyle
      • Motoring
      • Public sector
      • Retail and e-commerce
      • Satellite communications
      • Science
      • SMEs and start-ups
      • Social media
      • Talent and leadership
      • Telecoms
    • Events
    • Advertise
    TechCentralTechCentral
    Home » Opinion » Hilton Tarrant » How Vodacom’s new contracts stack up

    How Vodacom’s new contracts stack up

    By Hilton Tarrant19 April 2017
    Twitter LinkedIn Facebook WhatsApp Email Telegram Copy Link
    News Alerts
    WhatsApp

    Vodacom’s revamped Smart+ and Red+ integrated packages have seen increases in data, voice and SMS allocations across the board. And, in the case of its Smart packages — ranging from the R199 (200MB) to R699 (1GB) level — this additional “value” has come with monthly subscription price increases of at least 30%. But how do these stack up to offers from competitors?

    Key to this analysis are two vectors: price per month excluding a handset (and the below comparisons try to cluster these within a narrow band in each segment) and data allocation (after all, these integrated plans are targeted squarely at smartphone users).

    Entry level

    On entry-level packages (Smart XS+ with a paltry 200MB/month bundled is excluded), Vodacom now at least compares more favourably with rivals and offers better value than Cell C’s Pinnacle 250 (double the data with almost the same amount of minutes and SMSes).

    If one excludes Telkom’s FreeMe contracts, which typically make the competition look laughable, MTN shines in this segment. Its My MTNChoice+ S package offers four times the amount of data as Vodacom (and eight times that of Cell C), and even compares reasonably favourably with Telkom.

    It must be noted that, with the exception of the two top-end plans, Telkom’s FreeMe contracts do not come with bundled voice minutes. If you add the price of 200 minutes (or 100 in the case of MTN) of calling (at 69c/minute) to the FreeMe 2GB subscription price, it still compares favourably with both Vodacom and MTN’s plans.

     

    1 Allocation of 50 SMSes per day (billed at 30c each from 51st)

    Mid-level

    This is a useful segment to compare as it covers the average usage per smart device on the Vodacom network, currently at 667MB/month (as at December 2016). For R200 more (than the S+ plan) per month, Vodacom offers double the allocation of voice minutes and SMSes, and an additional 250MB of data.

    MTN’s MyMTNChoice+ S plan has such a generous allocation of data that it is included in this tier as well (there is a big jump to its next price plan at R699/month). Cell C’s Pinnacle 400 package, with only 400MB of bundled data, looks downright strange when compared to others in this category, especially its own Pinnacle 600 plan (more than double the data at R100/month extra).

    1 Allocation of 50 SMSes per day (billed at 30c each from 51st)

    ‘Realistic’ level

    I’ve termed this the “realistic” level as I would argue strongly that the bare minimum of bundled data anyone with a smartphone should consider is 1GB.

    Again, Vodacom looks far better than it used to (it used to include 500MB of the Smart L plan, at R529/month), but the comparison is still unfavourable.

    At the same price points, Cell C’s Pinnacle 1 000 offers double the data and more bundled voice and SMSes, while MTN shines again, with five times the data and (while lower) a still realistic voice and SMS allocation.

    1 Allocation of 50 SMSes per day (billed at 30c each from 51st)

    Heavy usage

    This comparison is probably where many readers of this site would start (with plans centred on at least 2GB of data (in most cases, higher) and around the R1 000/month mark).

    Again, the call that needs to be made here is how many voice minutes you use in a month. If you are not a heavy voice user, Vodacom’s Red More Data is by far the most attractive price plan (but, it is worth bearing in mind that a 10GB data bundle will cost R599 on Vodacom, so you’re paying R150 for 150 minutes and a handful of SMSes).

    1 Current extra promotion allocation of 7GB 2 Fair use of 5 000 minutes per month 3 Fair use of 4 000 minutes per month 4 Allocation of 50 SMSes per day (billed at 30c each from 51st) 5 Fair use of 25GB/month, speed throttled to 128kbit/s thereafter 6 Fair use of 3 000 minutes off-net per month

    Both Vodacom and MTN have a number of price plans in the no-man’s land between R999/month and the top tier (R2 099/R2 499), but these seem to target very specific heavy voice users and aren’t too competitive on a bundled data basis. These are excluded from this analysis.

    Top tier (‘unlimited’)

    At the very high end (contracts with unlimited calls), Vodacom’s Red VIP+ package is finally relevant in 2017. It is an absolute travesty that, until August last year, this premium plan only had 5GB of bundled data! However, this remains the only plan in this bracket that actually includes limitless calls and SMSes — that is, without a stated fair usage limit (the operator reserves its right in the case of “extreme usage”).

    Cell C maxes out at a 10GB allocation on its R999 Pinnacle Unlimited plan (with caps on both voice and SMSes).

    On Telkom’s FreeMe Unlimited option, Internet speed is throttled (but not cut) when customers hit 25GB of usage.

    1 Fair use of 7 500 minutes off-net per month 2 Current extra promotion allocation of 7GB 3 Fair use of 5 000 minutes per month 4 Fair use of 4 000 minutes per month 5 Fair use of 25GB/month, speed throttled to 128kbit/s thereafter 6 Fair use of 3 000 minutes off-net per month 7 Allocation of 50 SMSes per day (billed at 30c each from 51st)

    On the whole, Vodacom’s post-paid price plans still don’t compare well with those from rivals, especially MTN and Telkom. The operator will likely argue that many of the FreeMe comparisons are not constructive as all but the top two Telkom plans don’t offer any bundled voice minutes. It might also argue that it’s not all about price. Across its Red plans, Vodacom is hoping to further differentiate on other things, like a priority helpdesk and like-for-like loan devices (and free Super Rugby jerseys).

    It is strange that the market-leading operator in South Africa and the one which pioneered integrated price plans back in 2013 now lags rivals so obviously.

    Somehow, though, it’s managed to convince its 5,2m post-paid customers that its plans represent good (adequate?) value. Of course, contract customers are — by definition — sticky: they don’t typically switch from network to network. The other important thing Vodacom has in its favour is the size and quality of its network. It is the largest in the country, and the “best” on many measures. Some customers are justifiably willing to pay a premium for this.

    My advice? Start with the amount of data you currently use and accept that you will use more over time. There are a few more things to consider, but you should’ve read this already.

    • Hilton Tarrant works at immedia
    • This column was originally published on Moneyweb and is used here with permission


    Cell C Hilton Tarrant MTN Telkom Vodacom
    Subscribe to TechCentral Subscribe to TechCentral
    Share. Facebook Twitter LinkedIn WhatsApp Telegram Email Copy Link
    Previous ArticleInflation falls to six-month low
    Next Article Interview: Mars One candidate Adriana Marais

    Related Posts

    Safaricom profits soar 54% as Ethiopia losses narrow

    Safaricom profits soar 54% as Ethiopia losses narrow

    6 November 2025
    Nkosana

    Vodacom settles landmark ‘please call me’ case out of court

    5 November 2025
    Cell C announces JSE listing

    Cell C announces JSE listing

    5 November 2025
    Company News
    TechCentral achieves record monthly readership

    TechCentral achieves record monthly readership

    7 November 2025
    iONLINE's new global network core delivers real-time connectivity control

    iONLINE’s new global network core delivers real-time connectivity control

    7 November 2025
    AI and the human touch - finding the right balance in customer experience - 1Stream CX

    1Stream shows how real AI boosts customer experience

    7 November 2025
    Opinion
    AI takes the throne - Brian Hungwe

    AI takes the throne

    6 October 2025
    The author, Business Leadership South Africa CEO Busi Mavuso

    Trump tariffs and diplomatic missteps push Agoa off the cliff

    6 October 2025
    Duncan McLeod

    Why Capitec should buy Blu Label

    1 October 2025

    Subscribe to Updates

    Get the best South African technology news and analysis delivered to your e-mail inbox every morning.

    Latest Posts
    CSIR readies live cybercrime reporting system for banks, telcos

    CSIR readies live cybercrime reporting system for banks, telcos

    7 November 2025
    South African lawyers learn hard lesson in AI fiction

    South African lawyers learn hard lesson in AI fiction

    7 November 2025
    Licence to chill: Eskom's Koeberg cleared to keep humming till 2045

    Licence to chill: Eskom’s Koeberg cleared to keep humming till 2045

    7 November 2025
    Mustek CEO Hein Engelbrecht

    Mustek-backed AI marketplace launched in South Africa

    7 November 2025
    © 2009 - 2025 NewsCentral Media
    • Cookie policy (ZA)
    • TechCentral – privacy and Popia

    Type above and press Enter to search. Press Esc to cancel.

    Manage consent

    TechCentral uses cookies to enhance its offerings. Consenting to these technologies allows us to serve you better. Not consenting or withdrawing consent may adversely affect certain features and functions of the website.

    Functional Always active
    The technical storage or access is strictly necessary for the legitimate purpose of enabling the use of a specific service explicitly requested by the subscriber or user, or for the sole purpose of carrying out the transmission of a communication over an electronic communications network.
    Preferences
    The technical storage or access is necessary for the legitimate purpose of storing preferences that are not requested by the subscriber or user.
    Statistics
    The technical storage or access that is used exclusively for statistical purposes. The technical storage or access that is used exclusively for anonymous statistical purposes. Without a subpoena, voluntary compliance on the part of your Internet Service Provider, or additional records from a third party, information stored or retrieved for this purpose alone cannot usually be used to identify you.
    Marketing
    The technical storage or access is required to create user profiles to send advertising, or to track the user on a website or across several websites for similar marketing purposes.
    • Manage options
    • Manage services
    • Manage {vendor_count} vendors
    • Read more about these purposes
    View preferences
    • {title}
    • {title}
    • {title}