Photo Credit: Jeandré Badenhorst | techTography
Following the suggestions by the South African Competition Commission (SACC), Vodacom agreed to reduce its data prices coming the 1st of April 2020.
Quick Overview
Report
In December, the SACC released a report on data pricing across Africa. It found that data supplied by MTN and Vodacom in South Africa is between two and almost ten times more expensive than in other African countries.
The SACC suggested that mobile providers should reduce data prices, have some sort of “lifeline data” plan and to be more open towards its consumers about their data usage and prices of the amount they used.
Giant’s Objection
Both MTN and Vodacom felt the high data prices aren’t their fault and that the report was one-sided by focussing primarily on poor South Africans.
One significant reason for the high prices has nothing to with greed but rather the limited spectrum made available by national regulatory authorities. Less spectrum equals the need for more towers and technology to keep speeds and coverage up to standard.
Extension
The SACC, MTN and Vodacom met to discuss the matter and a one-month extension was given to both mobile giants. This gave them enough opportunity to get their plans in order to reduce prices but not disadvantage themselves.
Full Stories
Find the full stories here:
Data Price Drop in South Africa
Data prices in South Africa are amongst the highest in Africa. Find out what the competition commission recommended.
Photo Credit: Miguel Á. Padriñán
Objection of CC’s Instruction on Data Prices by MTN and Vodacom
The response from MTN and Vodacom about the Competition Commission’s data price report and recommendations.
Photo Credit: Mario Caruso
Data Prices Cut Extension Granted for MTN and Vodacom Granted
Update on data prices cut expected from MTN and Vodacom.
Photo Credit: PhotoMIX Ltd.
Vodacom’s Announcement
The first of the two giants to make a public announcement was Vodacom. They are reducing data prices by over 30 percent for monthly bundles and it includes prepaid customers and monthly contracts.
Vodacom decided to engage constructively with the Commission on the issues arising from the report
– Shameel Joosub, CEO of Vodacom Group
As an example, Vodacom used its 1GB bundle. It is currently priced at R149 and will be reduced to R99 which results in a 34% price cut.
Vodacom also expanded their zero-rated access to additional platforms. It’s Connect U platform will offer discounted bundle offers to pre-paid customers in low-income areas as well as free access to the following:
- job portals;
- educational content for grade 1 to 12 learners;
- health information regarding pregnancy through its Mum & Baby platform;
- Facebook Flex (Facebook’s data-friendly version of its site);
- certain government sites such as Home Affairs, education, direct communication and ambulance services;
- all school, T-Vet colleges and university sites;
- the whole Wikipedia.
MTN
At the time of writing, MTN is yet to comment about its negotiations and how it will adjust its data prices. Considering both providers were addressed about this issue at the same time, it is likely that MTN will also announce a reduction in its data prices within the next two weeks. It will also probably start offering lower-priced packages beginning of April.
Closing
MTN has big shoes to fill now that Vodacom announced free access to some services. Will they also provide free access, come up with something completely different or only cut prices. We’ll have to wait and see.
Vodacom’s price cuts will bring relief to a lot of South Africans and may help reduce unemployment by giving people free access to job portals and it can spark new economic activities that need the internet to flourish.
