The local market for mobile data services is skewed against low-income earners who are effectively charged more by network operators and have little access to Wi-Fi alternatives, the Competition Commission argues in its provisional report on the Data Services Market Inquiry.
The Competition Commission dismissed the argument from network operators that short-term data packages and promotions offered to low-income users lessen the gap between what they pay versus high-income earners. The provisional report describes a market with insufficient competition between network providers. Cell C and Telkom Mobile have tried to challenge the dominance of Vodacom and MTN by setting lower data costs.Due to their large subscriber base, MTN and Vodacom are able to pay for the infrastructure to provide wide and high-quality network coverage while the challengers can’t meet the same levels of capital expenditure, limiting their ability to attract new subscribers.
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