Vodacom has introduced 48-month smartphone contracts, allowing customers to pay a lower monthly fee compared to the traditional 24 or 36-month plans. The company says it developed this option in response to the rising cost of devices, aiming to make high-end smartphones more affordable.
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“Our 48-month contract strategy helps customers afford premium devices and stay connected, even during tough economic conditions,” Vodacom explained.
Although the 48-month contract is still in its early stages, Vodacom believes that customers who have opted for it are satisfied. However, longer financing terms expose Vodacom to inflation risks and the effects of the time value of money. To manage these, the company employs a “more-for-more” strategy, which balances inflationary pressures while maintaining a strong customer experience.
Vodacom’s cancellation policy remains the same for the 48-month contracts. Customers who cancel before the end of their term will be required to pay 75% of the remaining balance on their contract.
At the time of publication, most of Vodacom’s 48-month contracts were marked as sold out, but the details were still available for viewing online.
On the website you can compare the pricing across 24-month, 36-month, and 48-month contracts for the Huawei Pura 70 Pro 256GB using Vodacom’s RED Core plans.
For instance, the entry-level RED Core 1.3GB plan with 100 minutes costs R579 per month on a four-year contract, totalling R27,792 over the contract period. On a three-year contract, the monthly fee increases to R729, and on a two-year contract, it rises to R929.
Although the 48-month option offers lower monthly payments, customers will pay more in the long term due to the extended contract duration. For example, over four years, customers will pay approximately R6,600 more than they would on a 36-month contract and about R11,250 more than on a two-year contract.
On the RED Core 6.5GB plan with 200 minutes, a 48-month contract reduces the monthly fee to R899, compared to R1,109 on a 36-month plan and R1,219 on a 24-month plan.
In summary, while the 48-month contracts offer lower monthly payments, customers should be aware that they will pay significantly more over the entire contract period due to the longer duration and additional services provided.
