One of South Africa’s leading financial institutions, Capitec has joined other banks to launch a mobile virtual network operator (MVNO) with the promise of aggressive priced data.
The bank, which is launching the MVNO, called Capitec Connect, on Cell C’s enablement infrastructure, said on Monday that it intends to “disrupt the prepaid market” with a “simplified prepaid solution for voice, data and SMS”.
“Just as Capitec became a challenger within banking, they are now questioning the norms for prepaid mobile data and airtime,” the bank said in a statement.
Capitec Connect plans to charge R4.50 per 100MB of data, or R45/GB. This, it claimed, is on average 50% below the “normal market price”. The rate remains flat whether clients buy small or larger amounts. Significantly, the data never expires, provided the Capitec Connect Sim is used at least one every six months.
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“South Africans have been complaining about the cost of data. It’s expensive and complicated. Bundle pricing, off-peak and peak rates, and the fact that your data expired are all things that make no sense. We’re changing this by giving our clients access to a mobile solution that is simpler to understand, much more affordable and can be recharged easily on our digital channels,” said Capitec CEO Gerrie Fourie in the statement.
Sim cards are available to clients at all Capitec branches and clients can get up to five Sims linked to their profile – the idea being to give access to data and airtime to family members.
Once the Sim is activated, data, minutes, SMS’ and airtime can be topped up on the Capitec banking app, using a short code or via Internet banking.
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Calls are charged 90c/minute, while SMSes cost 25c. Airtime never expires, provided the Sim is used once every six months.
Kelechi Deca
Kelechi Deca has over two decades of media experience, he has traveled to over 77 countries reporting on multilateral development institutions, international business, trade, travels, culture, and diplomacy. He is also a petrol head with in-depth knowledge of automobiles and the auto industry