South Africans pay more for data than in other countries where their service providers operate — and those companies are “more than capable” of reducing prices, the Competition Commission said.
In response, Vodacom and MTN have argued that such comparisons are uninformative because the cost and quality differences across countries, including spectrum allocations, may account for the differences in pricing. They have also argued that such comparisons involve headline 30-day tariffs and that effective price, including promotions, short-validity bundles and free data, is a better basis for comparison.
Upon the release of the report, trade and industry minister Ebrahim Patel said data prices were critical to the economy. The report says that MTN and Vodacom must reach an agreement with the commission on substantial and immediate reductions on tariff levels.According to the report, Vodacom and MTN must independently reach an agreement with the commission on substantial and immediate reductions on tariff levels, especially prepaid monthly bundles, within two months of the release of the report. The preliminary evidence suggests that there is scope for price reductions in the region of 30% to 50%.
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