Guiding consumers since 2009

Cell C contract prices to change from 1 February

By Jessica Anne Wood

“We have notified affected customers via SMS about certain price changes that will take effect on 1 February 2017,” stated Cell C in response to an email.

In a statement released to Cell C subscribers, it noted that the price changes include applicable connection fees, subscription fees, usage charges, SIM card fees, goods fees and other charges relating to the provision of Cell C’s services.

The reason for the price increases

There are a number of factors that have contributed to the price increase. Cell C highlighted that these include rising inflation and the Rand/US Dollar exchange rate which have contributed to an increase in the cost to provide mobile services.

“The single biggest input cost is network equipment, which is procured from international vendors. This equipment is priced in US Dollars and any change in the Rand has a significant impact on a company’s capital expenditure and operating expenses,” explained Cell C.

It added: “Planning, Investment and implementation of network expansion happens in long lead cycles. In many cases our costs are linked to the value of the USD from years before implementation. The impact of Rand to the USD should be looked at over a three- to six-year investment cycle, not month-to-month. The broader economic environment including GDP growth and inflation plays a role in rising costs. Additionally, annual increases to support costs and operational expenditure have a large impact on our costs. Despite our best efforts to keep our prices unchanged, the rising cost to supply mobile network services has necessitated an increase in the price we charge the end consumer.”

However, while Cell C will be increasing some of its prices come 1 February, rival MTN has launched a payment break plan allowing customers who sign up for a 24 month contract in the months of January and February this year to get a two month payment ‘holiday’.

The new product prices

Cell C provided the following breakdown of its products and the relevant pricing changes. However, in an emailed response to Justmoney, Cell C highlighted: “Customers who signed up for any of the EPIC or Pinnacle contracts and who are still within their 24-month contract will be exempt from the price increase.”

Prepaid:

 

Contract voice:

Data:

Source: Cell C, effective from 1 February 2017

Recent Articles

Featured Get personal with your finances – and tie the knot

As time passes, your financial products may not live up to your needs. Therefore, it’s important to take stock of what you’re paying for and adjust where necessary. We got in touch with financial advisers to find out how you can get your finances in order, and what you should do to ensure you’re financially stable.

Personal loan or business loan? The best way to finance your business

When starting your own business, you may have to rely on external funding. Perhaps you qualify for a personal loan, but would it be better to take out a business loan instead? We got in touch with a specialist to find out whether it’s best to take out a business loan or a personal loan to assist you with your ongoing business or start-up.

What to do when you’ve been denied a home loan

After months of scanning property sites and attending showhouse after showhouse, you’ve finally found what you’ve been looking for. But your dream of owning a home comes crumbling down when you receive the news that you’ve been denied a home loan. So, what now?

Best travel cards offered by top South African banks

Planning a trip abroad involves a lot of administration. You need to consider travelling arrangements, reasonable accommodation, and a daily itinerary. But have you considered how you’re going to pay your bills once you arrive? Besides considering bank costs, you also need to consider exchange rates.

Deals

Takealot January Big Sale

Price: Available on request
When: Until 31 January 2020
Where: Online

Annique Restore Package Special

Price: From R600
When: Until 31 January 2020
Where: Centurion

Ster-Kinekor Senior Citizens Discount

Price: Available on request
When: Daily
Where: Nationwide