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
      Nvidia's biggest customers are becoming its biggest threat - Jensen Huang

      Nvidia’s best customers are becoming its biggest threat

      30 August 2026
      Nasa launches telescope that will map two billion galaxies

      Nasa launches telescope that will map two billion galaxies

      30 August 2026
      Chinese car makers go after South Africa's EV and bakkie buyers

      Chinese car makers go after South Africa’s EV and bakkie buyers

      30 August 2026
      South African talk radio is now searchable - Locl.co.za

      South African talk radio is now searchable

      28 August 2026
      JSE-listed ICT firm suspended for not paying its own dividend

      JSE-listed ICT firm suspended for not paying its own dividend

      28 August 2026
    • World
      AI-generated music banned from Australian charts

      AI-generated music banned from Australian charts

      26 August 2026
      Traders brace for a R4.5-trillion swing in Nvidia's value

      Traders brace for a R4.5-trillion swing in Nvidia’s value

      25 August 2026
      Russia building its own Starlink - and faster than expected - Vadym Skibitskyi

      Russia building its own Starlink – and faster than expected

      11 August 2026
      Meta AI will now tell parents if their teen is in crisis

      Meta AI will now tell parents if their teen is in crisis

      17 July 2026
      IBM shares crash 25% as AI upends software spending - Arvind Krishna

      IBM shares crash 25% as AI upends software spending

      15 July 2026
    • In-depth
      Google DeepMind CEO Demis Hassabis. Image: John Sears

      The plan to stop AI from breaking the world

      16 July 2026
      The internet has a Strait of Hormuz problem

      The internet has a Strait of Hormuz problem

      15 July 2026
      AI boom sparks rally, frenzy and fear

      AI boom sparks rally, frenzy and fear

      11 June 2026
      Every plug-in hybrid on sale in South Africa, ranked by price - Lamborghini Temerario

      Every plug-in hybrid on sale in South Africa, ranked by price

      7 June 2026
      What Wi-Fi 8 will mean for wireless networks

      What Wi-Fi 8 will mean for wireless networks

      1 June 2026
    • TCS
      Watts & Wheels S1E8: 'Tesla lands in Africa, just not here'

      Watts & Wheels S1E8: ‘Tesla lands in Africa, just not here’

      24 August 2026
      Meet the CIO | Discovery's Derek Wilcocks on AI, guardrails and growth

      Meet the CIO | Derek Wilcocks on how AI personalised Vitality

      13 August 2026
      TCS | Money just became native to the internet - Steven Boykey Sidley

      TCS | Money just became native to the internet – Steven Boykey Sidley

      12 August 2026
      TCS+ | Specops' Darren James on continuous trust in an AI world

      TCS+ | Specops’ Darren James on continuous trust in an AI world

      7 August 2026
      TCS+ | How AI is turning hardware into a subscription service - Shane van der Merwe Merchant West

      TCS+ | How AI is turning hardware into a subscription service

      6 August 2026
    • Opinion
      The fragile joint in the Capitec machine - Pambos Soteriades

      The R197-billion market the banks can’t reach

      25 August 2026
      South African tech's compounding debt problem - Jannie van Zyl

      Management consulting as we know it is over

      21 August 2026
      South African tech's compounding debt problem - Jannie van Zyl

      The most dangerous customer is the quiet one

      10 August 2026
      South African tech's compounding debt problem - Jannie van Zyl

      South African tech’s compounding debt problem

      29 July 2026
      The fragile joint in the Capitec machine - Pambos Soteriades

      Best network, worst vibes: the puzzle of SA telecoms

      20 July 2026
    • Company Hubs
      • 1Stream
      • Africa Data Centres
      • AfriGIS
      • Altron Digital Business
      • Altron Document Solutions
      • Altron Group
      • Arctic Wolf
      • Ascent Technology
      • AvertITD
      • BBD
      • Braintree
      • CallMiner
      • CambriLearn
      • CM.com
      • Contactable
      • CYBER1 Solutions
      • Digicloud Africa
      • Digimune
      • Domains.co.za
      • ESET
      • Euphoria Telecom
      • HOSTAFRICA
      • Incredible Business
      • iONLINE
      • IQbusiness
      • Iris Network Systems
      • Kaspersky
      • LSD Open
      • Mitel
      • NEC XON
      • Netstar
      • Network Platforms
      • Next DLP
      • Ovations
      • Paracon
      • Paratus
      • Q-KON
      • SevenC
      • SkyWire
      • Solid8 Technologies
      • Telit Cinterion
      • Telviva
      • Tenable
      • Vertiv
      • Videri Digital
      • Vodacom Business
      • Vox
      • 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
      • HealthTech
      • Information security
      • Internet and connectivity
      • Internet of Things
      • Investment
      • IT services
      • Lifestyle
      • Policy and regulation
      • Public sector
      • Retail and e-commerce
      • Satellite communications
      • Science
      • SMEs and start-ups
      • Social media
      • Talent and leadership
      • Telecoms
      • Watts & Wheels
    • 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
    Follow TechCentral on Google News Add TechCentral as your preferred source on Google


    Cell C Hilton Tarrant MTN Telkom Vodacom
    WhatsApp YouTube
    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

    Blu Label says MTN is coming for its Capitec business - Brett Levy

    Blu Label says MTN is coming for its Capitec business

    26 August 2026
    Blu Label's R46-billion electricity squeeze

    Blu Label’s R46-billion electricity squeeze

    26 August 2026
    MTN targets 150MW in first phase of AI data centre push

    MTN targets 150MW in first phase of AI data centre push

    25 August 2026
    Company News
    The stuff that doesn't fit on the quote - Graham Millar SevenC

    The stuff that doesn’t fit on the quote

    28 August 2026
    Can you trust the AI speaking to your customers? - 1Stream

    Can you trust the AI speaking to your customers?

    27 August 2026
    Telviva launches Viva, a digital agent built for South African businesses - Telviva CEO David Meintjes

    Telviva launches Viva, a digital agent built for South African businesses

    27 August 2026
    Opinion
    The fragile joint in the Capitec machine - Pambos Soteriades

    The R197-billion market the banks can’t reach

    25 August 2026
    South African tech's compounding debt problem - Jannie van Zyl

    Management consulting as we know it is over

    21 August 2026
    South African tech's compounding debt problem - Jannie van Zyl

    The most dangerous customer is the quiet one

    10 August 2026

    Subscribe to Updates

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

    Latest Posts
    Nvidia's biggest customers are becoming its biggest threat - Jensen Huang

    Nvidia’s best customers are becoming its biggest threat

    30 August 2026
    Nasa launches telescope that will map two billion galaxies

    Nasa launches telescope that will map two billion galaxies

    30 August 2026
    Chinese car makers go after South Africa's EV and bakkie buyers

    Chinese car makers go after South Africa’s EV and bakkie buyers

    30 August 2026
    South African talk radio is now searchable - Locl.co.za

    South African talk radio is now searchable

    28 August 2026
    © 2009 - 2026 NewsCentral Media
    Built and maintained by Chronon
    • 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}