Vodacom hits back at Cell C: Massive broadband price cut

Vodacom is set to launch its ‘Internet Starter Pack,’ offering a free modem and data for 12 months for under R400 once off
Cell C surprised the cellular market earlier this year when they launched their affordable prepaid data services with mobile data prices as low as R33/GB.
Cell C’s broadband pricing model offers subscribers a 7.2 Mbps HSPA+ modem and 2GB of data per month for a year at R1,499 once-off. Consumers can also opt for a R2,999 package which provides them with a 21 Mbps HSPA+ modem and 5GB per month for a year.
To date Vodacom and MTN have not responded to this offer but according to a document in the possession of MyBroadband, Vodacom is set to launch a similar prepaid offering for R399 once-off.
Vodacom’s ‘Internet Starter Pack’ includes a 3G USB modem (ZTE K3570z), 100 MB of data per month for 12 months and a SIM pack for a once-off price of R399.
“Vodacom is pleased to announce the launch of the Internet Starter Pack; for a once-off payment of R399, customers can get the Internet for a year - making it the perfect festive season gift,” Vodacom said in correspondence to its partners.
Massive saving on previous prices
Vodacom’s Internet Starter Pack provides price sensitive and low-end Internet users with significant savings on traditional mobile broadband prices.
Vodacom’s own 110MB data bundles are priced at R88 per month, while a 3.6 Mbps HSPA USB modem costs around R400. The total yearly cost for a ‘full service’ equates to R1456, multiple times more expensive than the new R399 offer from Vodacom.
The newly launched 8ta offers 100 MB of data at R50 per month (equating to R600 per year) while their E153 modem is priced at R410. This brings the total yearly cost to R1010, well above Vodacom’s R399.
MTN’s 75MB package priced at R79 per month includes a modem. At a total cost of ownership (over 12 months) of R948 it may be cheaper than current offerings but it will not looks good next to Vodacom’s latest data package.
Vodacom confirmed the new service, adding that it is set to be launched on 7 November.
Vodacom Internet Starter Pack promotional creative here