The_Right_Honourable_Brit
High Tory
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The Competition Commission on Monday unveiled surprisingly broad-ranging, tough and radical interventions in the data services market, including a proposal that mobile operators be forced to give South Africans a free allocation of daily data.
Competition commissioner Tembinkosi Bonakele said all mobile operators must reach an agreement within three months that will provide a monthly “lifeline” package of daily free data “to ensure all citizens have data access on a continual basis”.
Other radical — some might argue populist — interventions that the commission is demanding include:
- That Vodacom and MTN immediately reduce prices in agreement with the commission, with Bonakele arguing this could be between 30% and 50%. “Failure to reach this agreement within two months will lead the commission to consider prosecution for excessive pricing or other exclusionary abuses.
- That Vodacom and MTN must independently reach an agreement with the commission, also within two months, on the reduction of headline prices of all 500MB 30-day prepaid data bundles to reflect same cost per megabyte of 500MB 30-day bundles on post-paid or contract plans. “We are calling for the removal of the price discrimination for those data bundles.”
- That Vodacom and MTN must immediately reach an agreement with the commission to cease practices that may facilitate price discrimination against the poor.
- That all mobile operators must reach an agreement with the commission within three months on a consistent, industry-wide approach to zero-rating content for public benefit organisations and similar entities.
- That all mobile operators must reach agreement with the commission within three months to inform each subscriber on a monthly basis on the effective price of all data consumed by such a customer.
- That Telkom’s wholesale business Openserve must reach an agreement with the commission on substantial price reductions for IPConnect to reduce “excessive pricing concerns that are highlighted in the main report”. IPConnect is the service bought by Internet service providers to access Openserve’s wholesale network made up of ADSL and fibre lines.
Free data for all South Africans in radical regulatory intervention - TechCentral
The Competition Commission on Monday unveiled surprisingly broad-ranging, tough and radical interventions in the data services market, including a proposal that mobile operators be forced to give South Africans a free allocation of daily data.