Pan-African mobile network operators, MTN and VODACOM, documented service revenue shoot up of 15.6% and 17.2% respectively based on their recent financial results. Both MNOs have declared their intention to increase their prices regardless of the rise in revenues.
Benefitting from contract price hikes between 3%-5% carried out in the Q1 of the fiscal year, Vodacom’s mobile contract customer revenue soared to R22.6 billion by 2.8%.
Vodacom Group CEO, Shameel Joosub’s, mentioned that the telecom intends to proceed with price raises permanently particularly for post-paid customers. However, Vodacom will not suddenly increase price for pre-paid customers.
This will be effected by essentially distributing more data on the monthly bundles and marginally lifting the price.
In contrast to Vodacom whose cost plan seems to be supported by more value addition for users, MTN ‘s plan, according to the CEO, Ralph Mupita, is meant to ease macroeconomic influence on the business.
MTN added that it will be announcing different packages to serve the modification in consumption. This will conceal the effect of the cost increase on customers.
Also, Charles Molapisi, MTN South Africa CEO said the telecom will be effective based on how it raises costs in order not to squeeze the lower end of the market.
It appears the two companies will also continue to pass the cost of engaging in business to customers, especially the post-paid ones. However, the macroeconomic influences did not reveal any signs of decrease anytime soon.