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This Month: . MTN launched a video-on-demand service, FrontRow . Cell C announced several price plan changes . Web Africa announced FTTH packages . MTN’s data sharing offer launched . Orange is opening their first retail shop in Claremont Key Competitor Activities Consumer and Enterprise January 2015 This and all previous editions available at http://ci.vodacom.co.za Prepared by Vodacom Strategy & Research Contact: Leandra Jonker or Tersia Esbach January 2015 Content This report provides an overview of competitor activity in the consumer and enterprise segments during December 2014 and January 2015. • Highlights – overview of competitor highlights During December 2014 and January 2015 • Consumer P&S Timeline • Enterprise Market Competitor Activity • Competitor Activity – MTN – Telkom – Cell C – Adjacent Players • Mergers & Acquisitions - New • Financial and Operational KPIs Vodacom Strategy & Research Key Competitor Activities – January 2015 C3 – Vodacom Confidential 2 Highlights – Seven things of note We have added an additional slide from this month focussing on Merger & Acquisitions in our industry over the past year. See slide 15. 1. After a successful pilot MTN launched FrontRow, a video-on-demand 2. While MTN reported a 49% increase in SMS traffic on service offering access to movies and television shows. Monthly Christmas Day, Cell C reported that SMS traffic declined by subscription starts at R199 per month (R179 for a trial period). Two 21% over the Christmas period and 22% on New Year’s Day. service offerings are available – FrontRow Club and FrontRow The SMS decline could be attributed to Cell C’s free WhatsApp Premiere. The Premiere service offers movie rentals at R15 per older offering, which has been extended to end March 2015, and title and R27 for latest titles. An option including a 10GB data bundle illustrating the possible cannibalisation of SMS by IM services is also available at R499 (R399 during the promotional period). Data such as WhatsApp. bundles which can only be used to access FrontRow content are available at R300 for 10GB, R450 for 20B, and R800 for 50GB. The first 3. Cell C announced several price plan changes. The pricing of 1,000 customers to subscribe to the service will receive their first month the majority of data bundles were increased, with the free. Customers can view content via an Internet browser, or on exception of the larger 10GB and 20GB bundles, which were Android or iOS mobile devices. An Android app is available, with an iOS decreased to an effective in-bundle rate or 5c/MB. A new 25MB app planned. bundle was also added at R6. Selected Smartdata contract monthly subscriptions were cut. SmartChat voice contracts will no longer be available. Current customers will remain on their current package for the duration of their contract, and will enjoy a lower out-of-bundle data rate of 79c/MB. StraightUp Contract and TopUp monthly subscriptions were increased, and out-of-bundle voice rates on all StraightUp packages were increased from 79c/min to R1.05/min. These changes take effect on 1 February 2015. Cont. on next page Vodacom Strategy & Research Key Competitor Activities – January 2015 C3 – Vodacom Confidential 3 Highlights – Seven things of note 6. Another sub-R1 000 smartphone was announced by Pinnacle 4. Web Africa launched FTTH using Telkom’s network. Pricing starts at Africa. The Windows based Proline SP4 will retail at R999, is R639 for a 20Mbps line to R849 for a 100Mbps line, both excluding powered by Qualcomm’s quad core Snapdragon 200 processor data. A range of options including data is available ranging from and has 512MB RAM. R788 per month for a 20Mbps line with 40GB of data (plus an additional 80GB of after hours data) to R2 048 per month for a 100Mbps service including 400GB of data (plus an additional 800GB of after hours data). WebAfrica launched fibre offers in Parkhurst in November last year. Line rental + data package 20Mbps 40Mbps 100Mbps 40GB (+80GB after hours) R788 R888 R998 60GB (+120GB after hours) R838 R938 R1,048 90GB (+180GB after hours) R938 R1,038 R1,148 120GB (+240GB after hours) R1,038 R1,138 R1,248 200GB (+400GB after hours) R1,238 R1,338 R1,448 300GB (+600GB after hours) R1,538 R1,638 R1,748 7. Orange is opening their first retail shop in Claremont, where 400GB (+800GB after hours) R1,838 R1,938 R2,048 customers will be able to purchase products directly, and will Source: My Broadband also function as a point of service for those who have purchased products online. 6. Google is shutting down Woza, a free website design tool aimed at startups and SMEs on 28 February 2015. Companies are informed on 8. MTN launched a data bundle sharing service, Data Share, the site that their sites will disappear from May 2015. According to which allows MTN customers to share their data bundle with Google this forms part of their plan to improve their SME offerings. up to 20 other MTN customers. The service is available free to all MTN customers. Vodacom Strategy & Research Key Competitor Activities – January 2015 C3 – Vodacom Confidential 4 Consumer Market • Consumer P&S launches (August 2014 – January 2015) Vodacom Strategy & Research Key Competitor Activities – January 2015 C3 – Vodacom Confidential 5 Consumer P&S launches (August 2014 – January 2015) * Promotions August ’14 September ’14 October ’14 November ’14 Dec ‘14 – January ‘15 MegaBonus (30/11/14), extended in December to 31/12/14 Nite & Daily Internet WhatsApp zero-rated, extended to 31/03/15 66c/m prepaid promo (1/06 – 30/09), in July dropped further to Lumia 730; iPhone 6 Infinity Select extra data(15/03/14) 50c/min (30/09/14) 66c/min voice rate 2.4GB once-off data (31/01/15) BlackBerry Z3 permanent Price Plan Adjustments Talk Free & 1c Per Sec promo – 31/08 “Bite sized” data bundles Pay4Me Steppa FrontRow 1c Per Sec Promo – 31/08 Night Express Bundles & One iPhone 6; Galaxy Note 4 Data Share Sky Unlimited Promo – 30/09 Time data Bundles Talk Free Daily “Surprises” summer promo (to 14/01/15) Ad hoc data Promo – 31/08 Wow Bonus Weekend Express Bundle Promo International voice promo (31/01/2015) New Internet Bundles Roaming (Saudi Arabia) MTN Sky Promo (31/01/2015) promo (to 10/10/14) Cliq5 – 31/10 Free Symfy Africa Promo Rush Hour – 30/11 Data Bundle Promo extended to 31/08/14 offering additional free data & extended validity in 06/14; additional data promo extended to 30/11/14 iPhone 6 Unlimited Lite SmartHome deals Samsung Direct Billing LTE-A launch, promotional Prepaid internet starterpacks package Completely Unlimited SIM (20/11/14) Smartplan 100 Black Friday deals – 5GB data; XBox Promotional Bundles DStv Explora Vodacom Strategy & Research Key Competitor Activities – January 2015 C3 – Vodacom Confidential 6 Enterprise Market • Competitor Activity at a Glance Vodacom Strategy & Research Key Competitor Activities – January 2015 C3 – Vodacom Confidential 7 Enterprise Market Competitor Activity at a Glance – South Africa Segment Segment Segment Segment Segment SoHo/SME SoHo/SME SoHo/SME SoHo/SME SoHo/SME Large/VGE Large/VGE Large/VGE Large/VGE Large/VGE Significance Significance Significance Significance Significance Activity Activity Activity Activity Activity MTN will offer Amazon Web MTN launched Data Share, a Telkom will focus on the SME Google is shutting down Woza, a MTN appointed Debbie Minnaar Services, a cloud computing service that allows an MTN market this year. Dedicated free website design tool aimed at as General Manager for Products offering, through a service customer to share their data business desks to serve this startups and SMEs on 28 February and Services in their Group dubbed “Direct Connect” to bundle with up to 20 MTN market are now available in 2015. Companies are informed Enterprise Business unit. She will businesses across Africa. Clients numbers. The service is available Telkom stores, where ICT needs on the site that their sites will be responsible for determining will be provided with connectivity to all customers and can be of SME are analysed to help disappear from May 2015. the ICT offering across all markets to their data centres or activated via USSD. Any SIM choose suitable products across According to Google this forms and identification of key businesses and the AWS EU enabled device can be linked to mobile and fixed offers. part of their plan to improve their partnerships to drive Cloud and Ireland region through MTN’s the main account holder. While more SME offerings. Local tech start- other services. extensive Global MPLS network. the service was launched to the up Vigo, offers an online web consumer market, it will be MTN is restructuring their More & more creation platform targeted at attractive to SME/SoHo clients SMEs, has stepped in, offering enterprise unit in South Africa in too. clients a “seamless transition order to enhance customer more from their current Woza Web service and market sites” to Vigo. differentiation, and confirmed retrenchments in the unit due to More & more the restructure. More & more Vodacom Strategy & Research Key Competitor Activities – January 2015 C3 – Vodacom Confidential 8 Competitor Activity • MTN launched FrontRow, a VoD service • Telkom to focus on SME market • Cell C announces changes to pricing structure • Adjacent Players Vodacom Strategy & Research Key Competitor Activities – January 2015 C3 – Vodacom Confidential 9 MTN launched FrontRow, a VoD service Article links Consumer . MTN launched FrontRow, a video-on-demand service offering access to movies . MTN erroneously sent messages to non-subscribers notifying them of free and television shows. Monthly subscription starts at R199 per month (R179 for Twitter access. This promotion is available to all MTN since May 2014, and is Products & a trial period). Two service offerings are available – FrontRow Club and still on-going.
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