Mobile operators now have an extra month in which to slash data prices, after the Competition Commission (CompCom) extended the deadline.
In December last year, the CompCom found data prices are excessive in SA and the market is highly dominated by Vodacom and MTN.
It then recommended that service providers reduce the price of data by up to 50% or face prosecution.
The inquiry was initiated by the commission in August 2017. This followed persistent concerns expressed by the public about the high level of data prices and the importance of data affordability for the South African economy and consumers.
However, the operators were not happy with the recommendations. MTN said it “respectfully disagrees” with the recommendations made by the commission on data price cuts in SA.
Vodacom said it has consistently stated that delayed spectrum allocation has impacted the rate at which data prices could have fallen.
Vodacom has reduced the effective price of data by circa 50% since March 2016, the operator said last year.
In a statement issued on Friday, the commission says: “On 2 December 2019, the commission released the Data Services Market Inquiry final report with findings and recommendations.”
It adds that the report, among many other things, recommended that two mobile network operators, Vodacom and MTN, reach agreement within two months with the commission to reduce data prices, particularly for monthly bundles, and to address the structure of data pricing, reducing the cost per MB for smaller sub-1GB bundles relative to the 1GB price.
“Further, the report also recommended that these operators reach agreement with the commission on other pro-poor measures within three months, and these included free data and zero-rating of public benefit organisations.
“Following the announcement, the commission has separately had productive engagements with the two operators, Vodacom and MTN, as well as other affected MNOs [mobile network operators] with regards to the findings and recommendations.
“Given that the engagements with the operators are at an advanced stage, the commission has decided to extend the two-month deadline by one month to allow sufficient time to conclude these engagements.”
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