Are price hikes announced by Vodacom in preparation for Please Call Me idea-man to get his pay-day?
Vodacom recently announced that their annual price increase for both fibre and contract will come into effect from 1 April 2024.
Vodacom South Africa recently announced price adjustments to postpaid and fibre tariffs. The new prices will come into effect from 1 April 2024.
However, the price adjustments came barely a few months after MTN hiked its tariffs. From 1 April, there will be an 8% subscription increase for Vodacom contract customers on both Mobile Broadband data plans and Home Internet plans.
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VODACOM ANNOUNCES PRICE HIKES
In a statement, Vodacom states that the adjustment equates to an average increase of 4.6% to a customer’s total bill. The network provider revealed that it has heavily invested in network resilience, resulting in price hikes.
In a statement, Vodacom South Africa said, “To help cushion customers from impacts of higher increases, the likes of insurance premiums, hardware and device costs, valued-added-services, and out-of-bundle rates remain unchanged.”
“We remain committed to contributing to the growth and resilience of the country’s economy while offering customers the best value, a robust network, affordable pricing structure, and an exceptional customer experience,” reads the other part of the statement.
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MAKATE’S COURT CASE
Undoubtedly, many predicted the price hikes in the backdrop of the company’s recent court woes with Please Call Me idea-man Kenneth Nkosana Makate. According to reports, the Supreme Court of Appeal ordered Vodacom to pay Makate for using his idea.
Reports have it that Vodacom was ordered to pay Makate between R28.99 and R55.37 billion. Makate’s Vodacom case has been before the courts for 16 years. The Please Call Me Back idea-man reportedly has it that Vodacom generated over R250 billion from the idea.
However, Makate’s Vodacom case seems to have nothing to do with the price hikes. Over the years, it has become a global trend for network providers to adjust their prices as the year begins.
Vodacom and other network providers haven’t been spared from this norm. However, network providers adjust their tariffs to align with inflation and increased operational costs.