Don’t believe that Vodacom and MTN will give up massive OOB profits

When ICASA releases regulations preventing mobile operators from billing for out-of-bundle usage without subscriber consent, it will likely cause mobile data prices to increase, stated the Rapport.

According to the report, mobile networks generate at least a third of their revenue from data usage.

Citing Vodacom’s latest annual report, Rapport stated that a significant portion of those revenues come from out-of-bundle usage.

It is naive to think that mobile operators will give up the significant profits they generate from out-of-bundle charges, added spokesperson Koketso Moeti.

“70.6% of mobile contract revenue is in-bundle, reducing exposure to the risk of discretionary spend in out-of-bundle usage,” said Vodacom.

However, this means the remaining 29.4% of contract revenue is out-of-bundle. This also doesn’t take into account the out-of-bundle spend of prepaid subscribers, stated Rapport.

For Vodacom, data makes up nearly 40% of service revenue in South Africa. At the end of March 2017,

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