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South Africa: Study revealsbest telco for prepaidconsumersJuly 20, 2015 • Mobile and Telecoms, Southern Africa, Top Stories
A new analysis of South Africa’s prepaid mobile market found
that Telkom offers more high value plans for consumers than
any other operator in the country.
The study was conducted by Tarifica, a leading using the
Tarifica Score. The Tarifica Score is a comprehensive algorithm
that weighs every feature of a mobile plan (including usage
allotments, geographic coverage, data speeds, value added
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Telkom offers Best Value for Prepaid Consumers According
to New Study by Tarifica.
features and promotional elements) against its total costs,
determining its consumer value relative to all other offers in the
country.
Scores range from 0 (worst) to 100 (best). The Tarifica Score has
been used to evaluate the consumer value of South Africa’s
contract plans every month since July 2014 but this marks the
first occasion that prepaid plans have also been evaluated. With
the addition of the prepaid formula, the Tarifica Score now
measures the consumer value of every mobile plan in the
country.
Unlike contract plans, prepaid plans generally do not have set
usage allotments. Therefore, they are scored based on three
user profiles (light, medium and heavy) which define the
minimum included usage for voice, SMS and data. Plans with
scores above 75 (top quartile) are designated “Top Value Plans”
in each user profile. Across all profiles, 28 plans achieved this
distinction, 15 of which were from Telkom, followed by MTN with
eight, Cell C with four and Virgin Mobile with one. In addition,
Telkom had the Top Overall Value Plans (highest scoring) for
both the moderate and heavy user profiles. Cell C took that
honor for the light user profile.
“Telkom had strong plans and a variety of options at virtually
every price point,” stated Beth Teitel, Tarifica’s South Africa
analyst. “MTN and Cell C were each competitive in one or two
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profiles, but only Telkom’s plans provided strong consumer
value across the board.”
Summary of operator performance:
– Cell C’s plans performed well in the light user profile capturing
the Top Overall Value Plan and two other Top Value Plans,
based on having the least expensive perminute calling rate in
South Africa and effective bundling.
– MTN performed best in the moderate and heavy user profiles
capturing four Top Value Plans in each based on its diverse
bundle options, relatively competitive perminute calling rate
and generous data promotion.
– Telkom captured three Top Value Plan positions in the light
user profile, seven in the moderate user profile and five in the
heavy user profile. Its success was based on having the second
least expensive perminute calling rate and aggressively priced
SMS and data bundles that allow users to easily scale to match
their mobile usage.
– Virgin Mobile performed best in the light user profile capturing
one Top Value Plan based on an effectively priced bundle.
– Vodacom did not capture any Top Value Plans due to its
relatively high perminute and perSMS rates, although it did
score significantly better in the moderate and heavy user profiles
than in the light user profile.
“In today’s mobile marketplace, consumers are flooded with
hundreds of plan variations and constantly shifting promotions
and deals—the majority of which come with different costs and
services and access networks of differing strengths. Even
though consumers can easily switch prepaid plans and
operators, Tarifica Scores can help them to quickly identify the
prepaid plans in each profile that offer the best value for the
money,” stated Tarifica Program Manager, Will Watts.
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