Comparing contract and prepaid data prices misses one big factor

MyBroadband recently compared the price difference between mobile data on prepaid and on contract.

As expected, prepaid mobile data prices were higher than contract prices.

A 20GB Vodacom prepaid bundle, for example,  was 204% more expensive than the equivalent contract.

MTN’s closes prepaid package was 234% more expensive than its 20GB contract.

When asked about the price differences, the networks said the flexibility of prepaid comes at a premium.

24-month contracts offer operators recurring revenue, which Vodacom said allows for more accurate forecasting. It also allows carriers to ensure network capacity is optimally allocated.

Prepaid usage is more difficult to predict, due to its flexible structure.

Product design

Curiously, none of the networks provided MyBroadband with the arguments they made before ICASA when explaining their pricing.

ICASA, which is reviewing the  End-User and Subscriber Service Charter , recently completed its public consultations on new draft regulations.

Its proposal includes that 

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