Network providers still debating lower data prices with Competition Commission

File picture: Reuters

File picture: Reuters

Published Jan 22, 2020

Share

Cape Town – Network providers Vodacom and MTN are still in talks with the Competition Commission regarding its finding that they should lower their data prices.

The commission last month published its final report in relation to its data service market inquiry.

The inquiry started in August 2017 and came after complaints from the public over high data prices.

As part of the inquiry the commission received submissions from major operators and consumer rights organisations, in the hope of providing a better understanding of the market and value chain features that result in elevated data prices.

The inquiry found that South Africans were being charged too much for data and the commission called for Vodacom and MTN to reduce prepaid monthly mobile data bundle prices within two months - possibly by between 30% and 50% - or face prosecution in terms of the Competition Act

MTN SA’s executive for corporate affairs, Jacqui O’Sullivan, yesterday said they were still engaging the commission.

“MTN is engaging the Competition Commission further regarding its recommendations around data pricing. While discussions are ongoing MTN reiterates its commitment to providing high quality, affordable data and connectivity to our customers in all our markets. 

"We will continue with our pricing transformation initiatives across all our markets to make our services more affordable for customers.”

When approached for comment, Vodacom referred to a statement it issued last year, promising to issue an update.

At the time Vodacom said it was reviewing the documents in “greater detail”.

“It is immediately evident that there is a significant difference in opinion between the Competition Commission and Icasa on a number of issues that are critical to data prices in South Africa. 

"In particular, Icasa concludes from its analysis of international mobile data prices that ‘South Africa’s prices are neither extremely high nor very low in relation to other African countries or compared to countries which are more similar to South Africa in terms of their size and level of development’. 

"When put in further context with data on speeds and LTE coverage, it is clear that customers in South Africa are benefiting from a much higher quality of access than those in other African countries'.”

Cape Times

Related Topics: