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Data prices have been an ongoing topic in South Africa (SA) for quite some time. The hashtag #datamustfall has also been going around for a few years and sparked new interest in the past week.
Kgaugelo Masweneng compared MTN and Vodacom’s data prices from all over Africa. Shockingly, MTN users in SA pay the most and Vodacom users in SA pay second-most for data in Africa. The shock is evident in the comparison tables below. Tables show the price per gigabyte (GB) for a 30-day bundle. Source of the figures below.
Vodacom 1GB 30-day Bundle Prices Across Africa
| Country | Price (USD) per GB |
|---|---|
| Egypt Vodafone | 1.24 |
| Mozambique Vodacom | 2.19 |
| Ghana Vodafone | 2.50 |
| Zambia Vodafone | 3.24 |
| Tanzania Vodacom | 4.34 |
| Lesotho Vodacom | 4.91 |
| South Africa Vodacom | 7.83 |
| DRC Vodacom | 8 |
MTN 1GB 30-day Bundle Retail Prices Across Africa
| Country | Price (USD) per GB |
|---|---|
| Uganda | 2.71 |
| Zambia | 2.75 |
| Nigeria | 2.77 |
| Ghana | 3.57 |
| Liberia | 4.00 |
| Rwanda | 5.36 |
| South Africa | 10.08 |
The Competition Commission
The Competition Commission (CC) researched data pricing in SA and concluded that mobile operators have not been behaving competitively. Mudiwa Gavaza reported that they (mobile operators) can now face prosecution if they do not drop their data prices. The argument by the CC is that the poor and disadvantaged people of SA are excluded from engaging in the digital economy. A correlation has been found between economic growth and internet access, studies have shown.
Recommendations by the Competition Commission
- Both MTN and Vodacom to reduce data tariffs
- Cost per megabyte (MB) for sub-500MB 30-day bundles must be the same as a 500MB bundle;
- An agreement must be reached within two months (February 2020).
- Lifeline Data
- Free data daily to provide all citizens access to the online society and community, regardless of their income levels;
- An agreement must be reached within three months (March 2020);
- Implemented within six months (June 2020).
- Openness towards consumers
- All mobile operators must inform each client monthly of their “effective price for all data consumed”;
- An agreement must be finalised with the Independent Communications Authority of South Africa (Icasa) within six months (June 2020).
Read the official report here.
All we can do now is wait and hope for the best. Only time will tell how the data giants will meet the public half-way.
