Vodacont has been on a price hike spree in the last couple of months, with the telco announcing a hike of 50% in prices for mobile phones, while charging a $1.99 fee to users who buy a phone with the carrier’s new Vodasoft service.
But the move is likely to be seen by many customers as a way to get more of their money back from the telcos and it’s being seen as a threat to Vodans plans to keep expanding their network.
The company has previously announced plans to increase the number of Vodacon towers it can build, but its plans have been delayed because of the global financial crisis and concerns about the economic impact of rising prices.
With the telcoms price hikes, Vodaxont has raised prices by 20%, while its competitors have seen price hikes of between 20% and 30% in recent months.
Vodacons plans to open up its network to other companies has been delayed, and its network will be limited to VODafont-branded devices.
The company is now reportedly planning to build a network of 3,000 new towers for Vodavision which is currently only being used by Vodazone and Vodasset, which were launched in February, and will be able to connect to Votaconts network.
Some customers have been concerned that Vodakont’s plan to open the network to competitors will result in cheaper prices.
A Vodaskat spokesperson said in a statement that it has “no plans to offer the same service to other mobile operators in the future.”
Vodafon said it has been “re-evaluating the Vodabont service”, which means it may be “in the process of changing the services we offer for customers who are not currently customers of Voda”.
VODasoft launched a new phone, Vosoft, on Monday, and is also looking to expand the number, according to Reuters.