Johannesburg - South Africa’s second largest mobile network MTN plans to hike several of its contract and data prices.
In a statement, MTN says it is introducing revised rates for its contracts and data plans. Meanwhile, MTN says it is reviewing its prepaid data bundles.
The company has also provided a list of price reviews that are expected come into effect (see below).
Price changes for prepaid data bundles are planned for April 23 while changes for post-paid offerings will happen on May 13, a spokesperson for MTN told Fin24.
“In accordance with the Consumer Protection Act and MTN’s subscriber agreement terms and conditions, MTN will give its subscribers 20 working days’ notice prior to effecting the price changes for contract customers,” said the company in a statement.
MTN explained in its statement that “cumulative costs have compelled the operator to review its pricing as the last resort”.
The mobile network further explains why price hikes may be on their way.
“In 2014, MTN underwent a process of reviewing its operations which was aimed at increasing efficiencies and reviewing its costs. This exercise was aimed at mitigating the impact of the challenging environment MTN operates in. The reduction in mobile termination rates, coupled with the increased costs of network investment, has necessitated a review of pricing,” said MTN in its statement.
“MTN has not increased contract subscription prices for over a decade despite rising operational costs, distribution costs, transport costs, handset price increases, infrastructural costs, falling exchange rates and an increase in taxes.
“Recently, MTN has had to invest substantially in generators and back-up batteries to power its base stations during power outages,” notes MTN.
MTN’s move to hike its tariffs comes after rivals Vodacom and Cell C have made similar moves this year.
Vodacom has been heavily criticised for announcing that is hiking its contract prices on May 1. Meanwhile, Cell C also told customers in December that it planned to increase contract and prepaid tariffs from February this year.
Subsequently, the National Consumer Commission has launched a probe into Vodacom and Cell C regarding their plans to increase voice and data prices.
UPDATE: See MTN's new voice and data subscription fees below or click here to view the excel file: