CAPE TOWN – Vodacom and MTN must independently reach an agreement with the Competition Commission to cease ongoing partitioning and price discrimination strategies that may facilitate greater exploitation of market power and anti-poor pricing.
This was part of the findings of the Data Services Market Inquiry that was initiated on August 18, 2017, by the Competition Commission in terms of the Competition Act. The initiation of the Inquiry followed concerns expressed by the then Minister of Economic Development Ebrahim Patel, about the high level of data prices and the importance of data affordability in South Africa.
In its summary of findings and recommendations report the commission said all mobile operators must reach an agreement with the Commission within three months to offer all prepaid subscribers a lifeline package of daily free data to ensure all citizens had data access on a continual basis, regardless of income levels.
“This agreement must then be given formal legislative or regulatory effect within six months. Access to affordable data is of paramount importance for economic and social inclusion and thus mobile pricing must be addressed.