MTN South Africa Announces Postpaid Price Increases
MTN South Africa Announces Postpaid Price Increases. MTN South Africa has announced price increases for postpaid contracts that will take effect from 1 February 2024. The price increases come at a time when the company continues to invest in network resilience to ensure that its customers enjoy a high quality network experience, despite continued national power cuts, ongoing crime at sites and a weaker Rand against the dollar.
“In recent years, demand for data services has grown exponentially, placing greater strain on telecoms networks. At the same time as investing to improve our extensive network infrastructure, we have had to contend with the escalating costs of ensuring resilience during loadshedding, inflationary pressure and more instances of battery theft and site vandalism,” said MTN SA Chief Commercial Officer, Ernst Fonternel. “The price adjustment will enable us to enhance our network resilience to ensure that our customers experience improved network stability and reliability.”
Out of bundle voice rates will increase by R0.11 on average, while out of bundle data rates increase by only R0.04 per MB. Subscription fees will increase by an average of 8.8%. Device fees, insurance premiums, and add-on voice / data bundle prices will remain unchanged. Since the end of 2022, MTN South Africa has been running an intensive network resilience programme to enhance and strengthen its network, particularly to counter the effects of consistent power cuts, along with thefts from network sites. By the end of Q1 2024, MTN will have invested R4-5 billion in the network to ensure best-in-class service.
MTN has consistently applied only inflation-related increases over the years. Increments include a 4% rise in 2019 and 5% in 2022 and 5.1% in 2023, with a notable hiatus in 2020 and 2021. However, faced with current economic pressures, MTN is adopting a cautious approach for 2024 to ensure it can continue to deliver a quality network experience to customers.
MTN acknowledges the potential impact of the price adjustments on contract customers of the price adjustments. The company remains committed to delivering exceptional value and service while navigating the economic realities impacting the industry, and the country. In addition to the network enhancements, the company will continue to offer a wide range of innovative products and services, ensuring customers receive the best possible experience.
