Telkom Mobile could spark another round of price wars among cell companies with the announcement today of its Sim-Sonke pre-paid tariff.
The company claims that the new product provides the lowest standard tariff to enable better access to telephony for those living in high density communities in urban areas.
For as little as 29 cents per minute on per second billing Sim-Sonke subscribers will be able to make calls to other Telkom Mobile subscribers, or for 75 cents per minute to all other SA networks and Telkom and Neotel fixed-lines. These rates apply all day, every day, the company states.
“SIM-Sonke is a ground-breaking prepaid voice offering, with a simple tariff structure that offers the lowest prepaid tariff in the market,” says Attila Vitai, MD of Telkom Mobile. “We are really pleased to be able to offer consumers this tariff.
“In line with the government’s and the regulator’s agendas to lower the cost of communications, Telkom Mobile is leading the market by launching affordable telephony so South Africans can save a little as the prices of many goods continue to increase.”
South Africa’s mobile termination rates (MTRs), the rate that one operator charges another for terminating the call on its network, are high by international standards. However, Telkom Mobile has bypassed these costs by making this offer available only on its own network. By leveraging its existing network infrastructure including IT, network, and marketing, the company has managed to create a really compelling consumer offer.
The company believes that if the regulator were to reduce MTRs, prices could be reduced even more, therefore alleviating the economic pressure on consumers.
“For us the launch of Sim-Sonke is a strategic move which contributes to our business plans while fulfilling a social agenda,” Vitai says. “This is achieved by leveraging Telkom group infrastructure in line with our group convergence strategy to reduce call, data and SMS charges.”
The launch of Sim-Sonke, a play on the Nguni word sisonke meaning togetherness, is also contributing to the communities it is targeting.
The advertising campaign is launching exclusively on community based media. The radio campaign is one of the single largest campaigns booked on community radio. “By using community based media we are able to better customise our communication to tap into the unique qualities of different communities,” says Vitai. “We have a holding of 200 wall murals. The home owners received an income from this advertising on their walls enabling them to invest the funds in things such as school fees for their children.”