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MTN cuts out-of-bundle data rate to 29c/MB

MTN today announced a massive cut in data rates for prepaid customers currently not making use of data bundles.

MTN has slashed its out of bundle (OOB) data rate by up to 75% for prepaid customers, and says  it will double selected prepaid voice and data bundles for the next two months.

Prepaid customers currently not making use of data bundles will pay 29c per megabyte for their data usage, while customers that do purchase data bundles will pay 49c per megabyte for their OOB data usage.

World Wide Worx has for several years been arguing for a 29c per megabyte ceiling rate on OOB data for ad hoc users.

“We have consistently been reducing the cost to communicate in recent years, but we want to do more for our customers and, by tackling the issue of OOB pricing, we know we are addressing a real pain point,” said MTN SA CEO, Godfrey Motsa.

Motsa said the imminent release of much-needed spectrum was an important milestone in South Africa’s telecommunications history and is reason for optimism.

“We are greatly encouraged by the steps being taken by both government and our regulator, to progress the release of spectrum,” he said. “More spectrum will be an important contributor to helping further drive down the cost to communicate and by slashing our OOB pricing, MTN is showing our commitment to our customers and to the future of this industry.”

The purchasing of data bundles remains the most cost-effective way to use data, so the new OOB pricing is structured to encourage customers to stay in-bundle. For those customers that have never used data bundles, the pricing has been set at 29c to still allow for well-priced use of the internet, despite not using a data bundle.

New customers that have just activated their SIM cards, customers that have ported to MTN, along with active MTN subscribers that have migrated from contract or hybrid packages to prepaid, will all be allocated the 29c rate. This rate will only change once they start making use of data bundles.

“With so many priorities vying for a share of our consumer’s wallets, we want to remove the worry of OOB pricing and help keep our customers connected, at all times and at affordable rates,” Motsa said.

Due to the size of the MTN subscriber base, the solution will be rolled out to all pre-paid customers over a seven day period, starting at midnight on 31 January. In addition to the reduced OOB pricing, MTN also announced it will be doubling selected prepaid customer’s voice and data bundles for February and March.

The MTN Double Your Bundle promotion rewards prepaid customers with 100% free value when they purchase selected voice and data bundles by dialling *142# and select either Double Data or Double Voice. When a customer chooses an offer, e.g. 500MB bundle, they receive an additional 500MB bundle. The bundles are available in daily, weekly and monthly options.  

MTN says the *142# service provides discounted offers that are individually tailored for each customer. The Double Your Bundle deal is a further promotion, on top of those discounts already being offered by *142#.

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