By Business News SA on 1 July 2019 - https://www.business-news.co.za/business/3967/new-data-deal-rocks-the-market.html
The little-known Cellspot entered the data market with a bang with the cheapest 1GB,10GB and 20GB data prices in South Africa, while MTN and Vodacom are still the most expensive.
Cellular Contracts are actually Cellspot's main focus during the past 10 years but decided to enter the data market with the launch of a wifi modem linked to extremely low data prices.
The Wifi Modem allow customers to purchase data at 1GB for R29, 10GB for R99 and 20GB for R189 and with up to 8 users that can connect to this modem it's set to light a fire in the data market.
Cellspot's CEO, Ivan Barrow says even while this is most likely the best and lowest data deal in the coutnry even they was surprised and overwelmed with the huge reaction so far and had to jump in to order more stock.
He says this special deal should have a positive impact on customers' pockets as they are paying far less compared to similar data bundles and because the deal is linked with a wifi modem, up to 8 family or staff members can link up to the modem and thus share the benefit and saves a lot of money for each individual and as a group.
Afrihost's month-to-month mobile prepaid data plan offers a 1GB bundle at R68, while its prepaid price is R109 for 1GB, slightly more expensive than Telkom's price of R100. FNB Connect's 1GB bundle is not far behind at R125. This means Vodacom and MTN charge 119.1% higher than Afrihost's month-to-month bundle and 19.2% higher than FNB Connect for the same 1GB bundle.
One way that Cellspot managed to offer such extraordinary offer is that they operate exclusively online via their warehouses and call center and thus save a lot of money on traditional infrastructure, staff and many other expenses assosiated with branches all over the country and pass that savings on to their customers rather than to earn huge profits.
While delivery cost is one of the biggest problems with online shopping Cellspot's CEO said that it's not a problem because they cover the 3 - 5 days delivery cost out of their own pocket and thus deliver the modem free of any charge to their customers.
South Africans are expected to spend R45.3bn on online shopping this year according to the fourth annual PayPal and Ipsos cross-border e-commerce report.
Consumer shopping behaviour was surveyed and the study reveals that more than 69% of adults who were active online in SA had shopped online in the past 12 months.
The report predicts that online shopping will increase even more over the next 24 months. It is forecast to reach R61.9bn in 2020
With an amazing data deal like what Cellspot offer it seems that the tide is turning in South Africa and more and more people will become internet-savy and start buying online and using the internet at much, much lower costs