DURBAN – Mobile operator Vodacom has hinted that it could challenge the Competition Commission's ruling on data prices, charging that it was planning to make further submissions to the anti-graft agency. Vodacom said it would make the submissions within the stipulated June 14 deadline after reviewing the commission's provisional report.
“These initiatives have resulted in a 34 percent decline in average data prices in the past calendar year and a 57 percent reduction in average data prices in the past three years,” the group said. “Vodacom and MTN could argue that the cost of providing data services has remained high in South Africa and they deserve to charge a premium relative to peers in South Africa, due to higher investments into their networks.
Takaendesa said the key factors that kept data prices high were ineffective competition, due to the dominance of the MTN and Vodacom, delays in the licensing of relevant spectrum, and complex product pricing offerings in the market.Takaendesa said market dominance and spectrum availability were likely to be resolved in the long term.
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