#DataMustFall: Network providers say their hands are tied

Vodacom and MTN make oral submissions to the Competition Commission's panel on the second day of public hearings looking into data services in the country. Picture: Goitsemang Tlhabye

Vodacom and MTN make oral submissions to the Competition Commission's panel on the second day of public hearings looking into data services in the country. Picture: Goitsemang Tlhabye

Published Oct 18, 2018

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Pretoria - Network providers making oral submissions to the Competition Commission's market inquiry on data services allege capacity constraints and investment considerations hamper the feasibility of lowered data costs.

On the first day of the inquiry held at the Department of Trade and Industry headquarters in Sunnyside, Pretoria, independent institutions made their submissions alleging exorbitant data costs affect the poorest of the poor the most.

With poor South Africans forking out as much as 10 to 30 times more for data whilst their richer counterparts are much better off.

And it is for this reason that gradual decline of data costs according to the institutions were denying people's right to accessing information.

Representatives for network giants Vodacom, MTN South Africa, Telkom and Cell C, took centre stage on the second day of the public hearings making their oral submissions to the commission.

Vodacom and MTN make oral submissions to the Competition Commission's panel on the second day of public hearings looking into data services in the country. Video: Goitsemang Tlhabye

The inquiry is being chaired by Arthur Mahuma, Dr Liberty Mncube, Bakhe Majenge and Jason Aproskie.

Shameel Joosub, on behalf of Vodacom, told the commission that their data costs were cheaper the more customers bought and that they had a variety of bundle offers to suit the poor population.

Joosub in answering questions put him by Aproskie about the possible effects of regulation of rates, said attempts to regulate a competitive market were strange and would result in less flexibility for competition.

MTN's Godfrey Motsa said a flat rate would only end up benefiting citizens who were well off.

Motsa added that in comparison to other African countries, it was their belief that South Africa was leading in terms of affordability based on the average income.

Pretoria News

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