Vodacom introduces four-year smartphone contracts to minimise costs

Smartphone contracts might just be the bane of existence to most South Africans, but they’re a necessity that most folks can’t avoid. To somewhat lessen the load on customers, Vodacom has introduced 48-month-long contracts, breaking the tradition that usually involves 12-, 24-, or 36-month contracts.

Vodacom’s big deal

MyBroadband first spotted the new payment solution on Vodacom’s website, allowing customers to pick up devices like the iPhone 16 (128GB) on the network operator’s RED Core 1.3GB 200min plan at R800/m – a R38,400 purchase totalled up. While that might seem a ‘cheaper’ price than, say, a 36-month contract closer to the R1,100/m mark, you’ll ultimately be paying R17,000 more than the iPhone 16’s starting price.

But we’re not the first to discover how poorly contracts operate. We’re nowhere near the first to call out the scummy practices these network operators thrive on, and we won’t be the last. Vodacom clearly doesn’t see it that way, however. While it did not initially announce the new payment solution, it ‘confirmed’ the new contract deals with MyBroadband.

“Our 48-month contract strategy aims to make high-end devices more affordable to our customers. This approach helps customers stay connected even during challenging economic times,” a spokesperson said.

Read More: The iPhone 16 Pro Max could cost you as much as R42,500 in South Africa

It’s not yet clear what sort of adoption rates the network has experienced with its new 48-month contracts, though Vodacom said it believes the customers already inducted are “satisfied.” We’re guessing Vodacom won’t be the last to bring about such a novel idea to market, with Telkom and MTN likely already hounding their technicians to follow in Vodacom’s steps.

Vodacom also confirmed that, despite the extended range of its contracts, it would be maintaining its current contract cancellation policies, referring to the network’s Ts and Cs which state that customers who opt out a little early, will be responsible for paying 75% of the balance of their contract.

“We always strive to minimise the impact of costs to customers. By adopting a ‘more-for-more’ strategy, we ensure that any inflationary pressures are managed in a way that continues to provide the best possible customer experience,” the spokesperson continued.

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