Vodacom has recently made additions to its catalogue for four-year-long smartphone contracts that would give customers the option to pay a lower monthly fee in comparison with its standard 24- or 36-month contracts, Cape {town} Etc reports.
MyBroadband recently reported on the four-year contract options, stating that Vodacom launched the contracts due to ‘surging device costs in recent years’.
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‘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,’ Vodacom told the publication.
The 48-month contract is a recent option available for customers, but the company believes that it will satisfy customers.
Vodacom does run the risk of being exposed to ‘inflationary risks’ if the financing devices over four years have a fixed monthly fee.
While Vodacom also has to consider the ‘time value of money’, they have stated that it has a ‘more-for-more’ strategy to deal with it.
‘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,’ Vodacom told MyBroadband.
In terms of the company’s contract cancellation terms, Vodacom stated that its policy remains unchanged and according to their contract terms and conditions, customers that cancel device contracts before they are paid up in full will pay ‘75% of the balance of their contract’.
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