Telecoms Regulation

South Africa’s Competition Commission Orders MTN And Vodacom To Decrease Data Prices

South Africa’s MTN Group and Vodacom Group could face prosecution if they don’t agree with the Competition Commission to lower data prices in the next two months, according to the watchdog’s findings from an inquiry that was published on Monday.

The data services inquiry was rolled out in August 2017 in response to an instruction from the minister of Economic Development and following complaints from consumers regarding high data costs. 

 

In its final report, the Competition Commission recommended that the two mobile operators should independently reach agreements with the competition watchdog on significant reductions of their tariff levels, especially on prepaid monthly bundles, within the next two months following the release of the report.

 

It said the preliminary evidence suggested that there is scope for fee reductions in the region of 30% to 50%. 

The watchdog also said that the mobile operators should reach an agreement to cease the ongoing price discrimination strategies that may bring about the exploitation of market power and anti-poor pricing.

 

In a summary of its report the Commission added that concerning the recommendations on the levels and structure of pricing, if an operator failed to reach the required agreements with the Commission in the specified timeframes, the Commission would proceed to prosecute under the relevant sections of the Act.

 

Credit: This article originated from www.iol.co.za





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