CAPE TOWN - South African multinational telecommunications company, MTN has announced price changes to specific prepaid call rates which have taken effect today.
The new call rate increase will however only affect certain price plan customers. This includes the MTB “Pay per second” and “Talk free” price plan customers.
“It is worth nothing that the three products affected are not our mainstream products and will not affect the majority of our customers”, said Executive for Corporate Affairs at MTN SA, Jacqui O’ Sullivan.
O' Sullivan said that the price rate increase is due to MTN's portfolio pricing overhaul.
"MTN’s portfolio and pricing overhaul was initiated last year with its post-paid products. MTN then put a similar roadmap in place to deal with the overhaul of the pre-paid products, in 2018".
The corporate executive added that various products will be affected in different ways. Some products will see an increase while others will see a decrease, said O' Sullivan.
"Our focus is to create a product portfolio that better supports what our customers require from us and allows us to move away from outdated legacy products that no longer meet our customer’s needs. The changes are also aimed at simplifying the portfolio so we can bring more value to our customers. The new category of personalised MyMTNOffers (tailored pre-paid offers) is an example of this. We have analysed customer’s usage behaviour to allow us to tailor personalised offers that will be more relevant to each individual customer".
When asked whether the recent prepaid call rates is linked to the expected VAT increase next month, O' Sullivan denied this.
"The changes announced today, in the pre-paid voice category, are part of this overall pre-paid portfolio review and are not linked to the VAT change", she said.
Pre-paid customers will not see a simple VAT increase on pre-paid products. "Instead, MTN is sticking with the portfolio overhaul roadmap that was planned ahead of the VAT changes. Our post-paid base, which went through this portfolio transformation in 2018, will see a simple 1% VAT increase", said O' Sullivan.
Customers may change their plan at any time by simply dialing *141*0# and select option 5.
The rates will change as follows:
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