MTN and Vodacom stumble as regulator calls for price cuts

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Competition Commission accuses SA’s biggest mobile operators of overcharging consumers

Mudiwa Gavazaand Loni Prinsloo

The companies charge more for data services in SA than they do in other markets where they operate, according to the provisional findings of the ongoing data services market inquiry."Lower-income consumers may be exploited to a far greater degree relative to wealthier consumers," said commissioner Tembinkosi Bonakele.

Ruhan du Plessis, technology analyst at Avior Capital, said a lack of mobile spectrum was the main driver of data prices. "Vodacom can confirm that, as part of its ongoing pricing transformation strategy to address the cost to communicate in SA, we have reduced the effective cost of data by 34% in the past calendar year alone," spokesperson Byron Kennedy said in an e-mailed response to questions."Much has changed in the mobile data pricing sector in the past 18 months.

 

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