Report - Mobiles services in Africa: Is pre-paid just for convenience?

[teligen] It is easy to understand that the convenience of not having to commit to monthly payments and lower cost increments are a driving force for pre-paid mobile services in many emerging markets. Using the basket-based price benchmarking methodology developed by Teligen for the OECD, Strategy Analytics is now also analysing the price level for individual tariff packages in a range of emerging markets around the world. In a recently finalised study of tariffs from 57 operators in 20 African countries it is clear that it is not only the convenience of pre-paid that is attractive in these countries, but also the actual pricing. Even though the range of post-paid offers is much wider, the prices are such that even for relatively high usage (140 calls and 55 messages per month) the pre-paid offers are the cheapest for the consumer in 14 of the 20 countries covered. Can there be alternative tariff solutions that can provide a post-paid complement to the pre-paid concept?

Mobiles services in Africa: Is pre-paid just for convenience?