Capitec to offer non-expiring data with Capitec Connet
Capitec has unveiled Capitec Connect, its own mobile virtual network operator (MVNO) that operates on the Cell C network, which roams on MTN.
The fact that its data never expires if used at least once every six months is sure to upend the market. Traditionally, operators sell data bundles with a validity period of up to 30 days. Data prices are also flat-rated, which means that large bundles (1GB) are paid per megabyte the same as lesser bundles, such as 100MB.
Rates are R45 per gigabyte (GB), which is "on average 50% below the market pricing," according to the bank.
This works out to R4.50 per 100 megabytes (MB) or 4.5 cents per MB. There is no out-of-bundle pricing.
Being fair
Regulators have often chastised operators for charging lower effective rates per megabyte for larger bundles than for smaller ones. As a result, clients with lesser incomes tend to pay more per unit of data than those with greater discretionary income.
Capitec Connect charges 90c per minute for calls and 25c for SMS.
"South Africans have been complaining about data charges." "It's expensive and complicated," explains Gerrie Fourie, CEO of Capitec.
"Bundle pricing, off-peak and peak rates, and the fact that your data has expired all make no sense."
"We're changing that by giving our clients a mobile solution that's simpler to understand, much more affordable, and easily rechargeable through our digital channels," he says.
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“Our vision is to bring connectivity to all. We want to help create opportunity for everyone to be able to connect with access to affordable data and digital banking anywhere, anytime.”
Forerunners
Capitec is the third bank to establish an MNVO, following FNB (which debuted in 2015) and Standard Bank (2018). Cell C's network is used by both of these.
This month, TFG established its own MVNO (TFG Connect), which is based on MTN. Despite marketing it to clients, the proposition has not been publicly revealed.
Mr Price was the first retailer to join the mobile industry, introducing its mobile virtual network operator (MVNO) (also utilising Cell C) in 2017. The group stated earlier this year that its revenue from financial services and telecommunications will exceed R1 billion in the fiscal year 2022, out of a total revenue of R28 billion.
Pick n Pay and Shoprite (k'nect) are two supermarket chains that have entered the MVNO industry. Both initiatives have been relatively quiet, however, Shoprite has been giving double the recharge value as a promotion to clients who use its new Money Market Account.
Getting in touch with Capitec
Capitec Connect SIM cards are only available in Capitec branches and are only available to Capitec clients with an active Global One account.
Only the bank's own channels offer airtime and data bundles (app, internet banking and USSD). Clients can link up to five SIM cards to their profile.
Capitec Connect does not support international roaming because it is a prepaid offering.
According to the bank, "international call and data rates are expensive," and clients should "rather buy a SIM in the country you are traveling… the call rates will be much lower."
There is currently no link to its Live Better rewards program, but this will undoubtedly be added once Capitec Connect is fully operational.
