Kaya bizz talks to Duncan Mcleod, Editor Of Tech Central
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• Vodacom and MTN must drop mobile data prices significantly, failing which the Competition Commission will consider prosecuting the two companies.
• That’s the warning from commissioner Tembinkosi Bonakele, who was speaking at the commission’s release of its final report into the data services market.
• Bonakele said the two operators charge too much for mobile data services, particularly when it comes to prepaid access. “This reflects a bias against the poor. 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 based on 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.”
• That’s the warning from commissioner Tembinkosi Bonakele, who was speaking at the commission’s release of its final report into the data services market.
• Bonakele said the two operators charge too much for mobile data services, particularly when it comes to prepaid access. “This reflects a bias against the poor. 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 based on 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.”
