SA data prices must be reduced - Competition Commission

JOHANNESBURG - The Competition Commission has recommended service providers reduce the price of data or face prosecution.

The commission presented its data service market inquiry’s final report on Monday afternoon.

It found data prices are excessive in South Africa and the market is highly dominated by Vodacom and MTN.

Commissioner Tembinkosi Bonakele said: “We believe that an appropriate regulation is reasonable. How this will be achieved will be explained as we give more details on this report.”

Trade and Industry Minister Ebrahim Patel said the government would act.

“It was clear, according to the findings, that we have a competition problem in the market and that prices are higher than they should be compared to elsewhere in the world.”

MTN and Vodacom could face prosecution if they do not agree with the Competition Commission to reduce the price of data in the next two months. Bonakele said the two companies should immediately lower prices by around 50%.

The commission also recommended that the government must introduce regulations to combat excessive data pricing in the country.

“We believe on the basis of evidence that there is scope for reduction of prices between 30% and 50%. The failure of reduction within two months will lead to prosecution for excessive pricing,” said Bonakele.

Data Market Inquiry Summary by Janice Healing on Scribd


This article first appeared on EWN : SA data prices must be reduced - Competition Commission


Recommended

by NEWSROOM AI
Read More
Geoff Makhubo: City of Joburg finances in shambles

Geoff Makhubo: City of Joburg finances in shambles

Makhubo says Herman Mashaba’s administration is to blame for the billions it’s owed in uncollected revenue.

 Xolani Gwala was interested in helping people - Ndabeni-Abrahams

Xolani Gwala was interested in helping people - Ndabeni-Abrahams

Thursday morning saw a number of speakers including Communications Minister Stella Ndabeni-Abrahams, who said South Africa has lost one of its greatest sons.

Lesufi: Xolani Gwala irreplaceable as journo & a South African

Lesufi: Xolani Gwala irreplaceable as journo & a South African

Hundreds of mourners gathered at the Grace House Family Church in Randburg to remember Gwala.

Gordhan hate speech case: Court rules in favour of Malema

Gordhan hate speech case: Court rules in favour of Malema

The EFF leader accused Pravin Gordhan of going to state-owned enterprises to remove black people and of being a dog of white monopoly capital.

Popular articles
Want to start a small business? Lessons from a successful serial entrepreneur...

Want to start a small business? Lessons from a successful serial entrepreneur...

The Money Show’s Bruce Whitfield interviews Nic Haralambous, founder (at the cost of R5000!) of funky sock company Nic Harry.

Considering emigration? Financial planner discusses the affordability of leaving

Considering emigration? Financial planner discusses the affordability of leaving

Can you afford to leave South Africa? Certified Financial Planner (CFP) Barry O'Mahony on what to consider before deciding.

'SAA’s collapse plays nicely into hands of a politically constrained Ramaphosa'

'SAA’s collapse plays nicely into hands of a politically constrained Ramaphosa'

After dithering for fear of spending political capital, SAA is now out of the President’s hands, says Pieter du Toit (News24).

There is no Ubuntu in how Khanya Cekeshe has been treated - Thuli Madonsela

There is no Ubuntu in how Khanya Cekeshe has been treated - Thuli Madonsela

Former public protector says the eight-year sentence was too harsh and it shouldn't matter that he was not a Wits student.

‘South Africans are getting poorer and poorer because of politics’

‘South Africans are getting poorer and poorer because of politics’

SAA is a classic example, says Isaah Mhlanga, Chief Economist at Alexander Forbes Investments.

[WATCH] Grandpa with new iPhone wanting to set pictures for contacts goes viral

[WATCH] Grandpa with new iPhone wanting to set pictures for contacts goes viral

Khabazela shares tweets and Facebook posts that have gone viral.

[WATCH] Couple dancing in traffic has social media talking

[WATCH] Couple dancing in traffic has social media talking

Khabazela shares tweets and Facebook posts that have gone viral.

How to make your first R1 million (after that it just becomes so much easier)

How to make your first R1 million (after that it just becomes so much easier)

Rich. Wealthy. Financially free... Call it what you will; the first million is how you get there. Warren Ingram on his book...

Why is Mauritius rich and Madagascar poor?

Why is Mauritius rich and Madagascar poor?

Comparing Madagascar and Mauritius – a tale of two islands, by the Gordon Institute of Business Science's Dr Lyal White.