THE TARIFFIC PERFECT PACKAGE TRACKER – Q1 2015

February 24, 2015

ABOUT THIS TRACKER

The South African cellular market is incredibly complex and the fact is that most people are spending far more than they should on costly cell phone contracts that generally don’t suit their needs. Between Vodacom, Cell C, MTN and Telkom, there are over 10 000 different combinations of cell phone contracts and add-on bundles and its almost impossible for ordinary South African cell phone users to choose the contracts and bundles that actually suit their needs… or their pockets.

At Tariffic, we understand that everyone is unique and that everyone uses their cell phones in their own individual way. It is for this reason that we focus our Tracker on four unique users with their own unique usage patterns. Using our proprietary software we scientifically calculate which packages would be best for each user and how much those packages would cost. We call this tariff optimisation. We show the best options for each user on each network, with the 1st column indicating the most cost effective package & bundle for each user (also known as the Tariffic Pick!). Columns two through four show the 2nd, 3rd and 4th best packages & bundles respectively.

We optimise many different users every quarter, utilising the exact same parameters each time. We then select four users whose change in recommendations best encapsulate the changes to the cellular market over the period. Doing this allows our Tracker to function as a gauge of the South African cellular landscape, identifying how the cellular market is improving or deteriorating for consumers over time.

We’ve made a couple of adjustments to our methodology and algorithm taking into account changes in the external market. All such changes have been implemented for both Q1 and Q2 to ensure comparability of the results.

We hope that this tracking index will shine some light on the complex cellular market and inform consumers how they should be saving money and selecting their packages.

This is the first Tariffic Perfect Package Tracker.

Click here to tweet and share our very first Perfect Package Tracker

Tweet: Check out @Tariffic's very 1st Perfect Package Tracker, showing best cell contracts and bundles for 4 specific users - http://ctt.ec/7j5Db+

At Tariffic, we understand that everyone is unique and that everyone uses their cell phones in their own individual way. It is for this reason, that we have focused our Tracker on four unique users with their own unique usage patterns. We then scientifically calculate which packages would be best for them and how much those packages would cost. We show the best options for each user on each network, with the 1st column indicating the most cost effective package & bundle for each user (also known as the Tariffic Pick!). Columns two through four show the 2nd, 3rd and 4th best packages & bundles respectively.

Going forward we will optimise these exact same users every quarter, utilising the exact same parameters that we have used here. This Tracker will thereby function as a gauge of the South African cellular landscape, identifying how the cellular market is improving or deteriorating for consumers over time.

We hope that this tracking index will shine some light on the complex cellular market and inform consumers how they should be saving money and selecting their packages.

MEET THE CHARACTERS OF THE TRACKER

CHRIS

Chris has a Blackberry and works in financial services. He calls his wife a few times every day and uses his phone for a handful of business & personal calls during the week. He’s an inconsistent data user, some months using almost nothing and other months using up to 600 MB. Chris spends on average R1 200 per month.

SUSANNE

Susanne works in public relations and is constantly attached to her Samsung smartphone. She’s always on the phone with her clients and friends and uses quite a lot of data, especially when she’s travelling around the country to meet her clients. Susanne is pretty good at keeping it in bundle. She spends around R2 100 per month.

TSHEPO

Tshepo is a student at a prestigious Johannesburg high school and, like most teenagers, can’t be separated from his top-of-the-range iPhone. Tshepo doesn’t make many calls, but he does use a fortune of data, hooked as he is to social media and the latest apps. Tshepo’s parents spend around R1 100 per month.

MALEEK

Maleek is a university student who relies on his tablet and data SIM contract for his Internet access. He uses his tablet to do research, submit assignments and watch some sporting highlights. Maleek spends around R500 per month.

HOW TARIFFIC’S OPTIMISATIONS WORK

Tariffic’s optimisations are performed using our award-winning software, which analyses cell phone bills. Tariffic is able to look at a person’s current monthly spend along with exactly how that person uses their phone, in order to calculate what their spend would look like on each network, with the optimal contract/package and bundle combination.

Tariffic’s optimisations tests what a person’s bill would look like on all the different packages and bundle combinations out there and in this way is able to calculate exactly what a cell phone bill would come to each month, taking into account the costs of subscriptions and bundles, as well as the cost of usage over and above subscription (out of bundle spend).

Tariffic’s optimisations do not expect a person to change how they use their phone, as it is based on their own actual historical usage patterns.

Tariffic optimises without a cell phone in mind so that we match a person’s usage to the most cost effective contracts, taking all the complex call rates and tariffs into account. In this Tracker we show the total monthly cost of each recommended package and assume that on each package users would be taking a phone that does not require any additional pay in. It must be noted that when a person takes a more expensive phone, not automatically supported by a package, this increases the monthly subscriptions. In order to make the recommendations as comparable as possible, Tariffic has excluded all handset subsidies (also known as a Connection Incentive Bonus, or CIB) from its calculations to ensure that we’re analysing packages on a like-for-like basis.

Tariffic does not recommend any ‘deals’ that some service providers may be offering and instead recommends base tariffs only. Tariffic does not take “night-surfer” or any discounted data rates into account for data contracts and will only recommend data packages from South Africa’s four networks. Tariffic includes an amortised connection fee where applicable and estimates CIB values where they are not available. Note that Tariffic’s recommendations do not take network quality into account and are purely based on price alone.

Click here to tweet and share our very first Perfect Package Tracker

Tweet: Check out @Tariffic's very 1st Perfect Package Tracker, showing best cell contracts and bundles for 4 specific users - http://ctt.ec/7j5Db+

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