Telecom Services

Vodacom Announces Drop Of Data Prices - Reports

In 2020, the Competition Commission investigated the two leading mobile operators Vodacom and MTN, on their data pricing. The agreed resolution to the investigation was that the competitors had to cut down their data prices; alternatively, they face prosecution by the Competition Tribunal.

Since the judgement, Vodacom announced its first price reduction in March 2020. 1Gigabyt 30-day-bundle dropped from R149 (US$10) to R99 (US$7). Vodacom further made a commitment to decreasing its pricing by April of 2021 further. As committed, Vodacom has further dropped their 1Gigabyt 30-day-bundle by R15 (US$1) from R99 (US$7) to R85 (US$6).

According to various media houses, the reduction also influenced by COVID19, which led to an increase in demand for internet services, resulting in increased traffic across the networks. The boost cushioned the provisional revenue decline. It was also reported that the Competition Commission stated on Wednesday that Vodacom had reduced other specific price points in adhering to the agreement. An example was given of the R29 (US$2) price point, which has gone from 150MB to 200MB of data.

Another media outlet added on its report that Vodacom’s battle with the inventor of ‘Please Call Me’ Nkosana Makate is still unsettled. It has now surfaced that Vodacom had concluded that it owed Makate R63.4billion (US$4.4 billion) for his invention but had only offered him R47 million (US$3.2 million).

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