CAPE TOWN - Vodacom has announced that it will "significantly reduce" out-of-bundle prices for all customers from mid-October.
This recent out-of-bundle slash follows the spotlight of high data costs in South Africa.
“For pre-paid and customers on top-up packages, the out-of-bundle rate will drop by as much as 50% once the new 99c per megabyte tariff comes into effect on October 15.
"The out-of-bundle rate for post-paid customers was reduced from R1 per megabyte to 89c on October 1,” the company said in a statement.
In addition, Vodacom's Group CEO, Shameel Joosub said that the company needs to expand its 4G coverage and keep up with an increase of more than 45% in sustained data traffic demand.
Demons of high data prices, @MTNza @Vodacom @TelkomZA @CellC #Checkpoint #DataMustFall
— 1GBDATA4R30 (@1GBDATA) October 4, 2017
Vodacom follows suite by Cell C who has also reduced its out-of-bundle data rate.
Cell C reduced its out-of-bundle data rate for prepaid customers on its lowest tariff plan to 15 cents per MB, effective October 1 2017.
These network carriers reduced out-of-bundle venture follows the country's poor access to the digital economy. Similarly, Communications Minister, Ayanda Dlodlo appealed at the World Economic Forum (WEF) on Africa for network carriers to lower their data prices.
“The data costs are just too high. Mobile companies must come to the party and lower their data costs as the poor are the ones who are most adversely affected by the high cost of data. For example, we can’t gain much traction in areas like e-learning if our people can’t afford to purchase data,” said Dlodlo.
Additionally, it was reported that South Africa has the second highest data contract prices among a select group of seven countries, according to research company, Tariffic.
Users should not be charged at out of bundle and until they Slash Data Bundles prices in half then we can talk @Vodacom #DataMustFall https://t.co/PnEcI8q7JJ
— #Akanamali (@Ckura_) October 4, 2017
Brazil was revealed to be the most expensive for 1GB, 2GB and 3GB bundles with South Africa claiming second place.
Based on 2016 census, Tariffic found that while it costs South African's R77 for 1G, Brazil charges R210.
Similarly, a 2G package was charged at R252 in Brazil while it cost R112 in South Africa.
President Jacob Zuma also pointed out concern during his State of the Nation Address of the high data costs at the and noted that it was high on the government's agenda.