Wednesday, December 3, 2014

Telkom Expanding Lead in Plans’ Consumer Value

A new Tarifica study shows Telkom expanding its lead over competing mobile operators in terms of providing the most consumer value for contract plans in South Africa. The results are based on value as measured by the Tarifica Score™, a proprietary algorithm that comprehensively weighs every feature of a mobile plan (including usage allotments, geographic coverage, data speeds, value added features and promotional elements) against the plan’s total costs in order to determine its precise consumer value relative to all other offers in the market. Scores range from 0 (worst) to 100 (best). The Tarifica Score™ was first deployed in South Africa in July 2014 and has been used to rank every contract mobile plan on a monthly basis since.  
After scoring is completed, plans are divided into two categories, “With Phone” and “SIM Only”,   then subdivided into five price segments, creating a total of 10 groups. Of these groups, Telkom’s plans led the field in October, achieving Tarifica “Top Value Plan” status in five groups. Cell C rated second best, winning three of the 10 price segments. MTN and Virgin Mobile were each able to earn just one “Top Value Plan” while Vodacom, after offering the top overall SIM Only plan in the market a mere two months ago, was shut out entirely. 
Commenting on the most notable development in the market during October, Melissa Mascarenhas, Tarifica’s South Africa Analyst, stated, “The addition of unlimited on-net data to Telkom’s SmartPlan 100, 200 and 500 plans with the purchase of a phone considerably enhanced the already solid consumer value of these offers. There simply is no similarly priced alternative in South Africa that includes the volume of allowances available with these plans. Given that Telkom already had the top Tarifica Scores in September, this new promotion served to further expand the operator’s lead.” 
“In today’s mobile marketplace, consumers are flooded with hundreds of plan variations and constantly shifting promotions and deals—the majority of which come with different costs and services and access networks of differing strengths. When making a decision that will likely impact them for up to two years, consumers can use Tarifica Scores to cut through the clutter and identify those plans in every market segment that offer the best value for the money,” stated Tarifica Program Manager, Will Watts.

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