Vodacom South Africa has extended its mobile data promotion for 24-month data contracts and top-up subscribers through 6 April. Available for bundles ranging from 500 MB to 10 GB, the promotion offers steep discounts off the operator’s standard broadband rates. Vodacom is also offering a promotion on its LTE dongle package.
Vodacom’s promotion is a perfect example of an operator not following the type of price segmentation strategy we are advocating. In promoting its broadband services, the MNO is making no distinction between access methods, offering discounts without regard for whether the users are browsing the web via mobile devices or PCs/laptops. In our view, by not taking a two-tiered approach, Vodacom is leaving revenue and profits on the table.