Capitec has taken the wraps off its own mobile virtual network operator (MVNO) – Capitec Connect, which uses the Cell C network, which itself roams on MTN.
The fact that its data never expires – provided the SIM card is used at least once every six months – is likely to upend the market. Operators traditionally sell data bundles with a validity of up to 30 days.
Data rates are also flat-rated, meaning that large bundles (1GB) are priced at the same per megabyte as smaller bundles, such as 100MB.
Rates are R45 per gigabyte (GB), which the bank says is “on average 50% below the market price”.
This equates to R4.50 per 100 megabytes (MB) or 4.5c per MB. There is no out-of-bundle pricing.
Operators have long been criticised by regulators for pricing larger bundles at a lower effective rate per megabyte than smaller ones.
This means lower-income customers tend to pay more per unit of data than those with more disposable income.
On Capitec Connect calls are charged at 90c per minute and SMSs cost 25c.“South Africans have been complaining about the cost of data. It’s expensive and complicated,” says Capitec CEO Gerrie Fourie.
“Bundle pricing, off-peak and peak rates, and the fact that your data expired are all things that make no sense.
“We’re changing this by giving our clients access to a mobile solution that is simpler to understand, much more affordable and can be recharged easily on our digital channels,” he adds.
“Our vision is to bring connectivity to all. We want to help create opportunity for everyone to be able to connect with access to affordable data and digital banking anywhere, anytime.”
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