How to reduce South Africa's mobile data prices by 50%

Hanno Labuschagne

Hanno Labuschagne

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How to reduce South Africa's mobile data prices by 50%

A recent agreement between President Cyril Ramaphosa and Communications Minister Stella Ndabeni-Abrahams requires her to ensure mobile data prices are reduced by 50%.

This is a positive development. Lower data prices will result in more people going online and help to grow the economy.

What is important, though, is that the target is achieved through market forces and not a price-cut instruction to mobile operators.
 
With all of the points raised in the article, you know that the govt is going to go with the "forced price reductions" option.
 
This
"The easiest way to achieve this is to give them more spectrum and make it easier to roll out infrastructure"

Atleast do the digital tv migration in major cities first.
 
Instead of going the populist route, Ndabeni-Abrahams should focus on enabling operators to reduce prices through competitive forces.

The easiest way to achieve this is to give them more spectrum and make it easier to roll out infrastructure.

These interventions will lower the input costs to offer mobile data and encourage retail price cuts.
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While I agree with this, I would go further and replace the far from stellar minister with someone competent, I don't know if such a cadre actually exists, but almost anyone will do a better job compared to Stella who is corrupt and about as bad as Poison Ivy was (and the many other ministers that came before her).

I know it's not going to happen.

#ProblemIsStella
 
Sarg3_ZN said:
The price is not the problem, why does data expire and how difficult is it to prevent oob usage when your bundles run out by sending an opt in message?
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Dont know about data rollover, but correct me if I am wrong - oob usage cant happen anymore, Customers need to purchase a data bundle to use internet
 
How to reduce South Africa's mobile data prices by 50%
Flywheel said:
You follow the way of China - instruct them that if they don't, you will apply a vice grip to the directors and managers balls.
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After first removing the release catch!
 
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If I were govt I'd probably consider requiring all networks to have a prepaid 1GB bundle at a set price (regulated) with data that does not expire as the "govt mandated" bundle, then leave all other packages unregulated. But you'd have to consider the consequnces of that.

Selling spectrum is probably the best though. Inviting more cellular networks to the table would be another great step.
 
The ANC's ideology and inability to manage properly always clouds their judgement. The state of the countries infrastructure is testament to the above. They just wont learn to let market forces do the work,, always trying to play politics or come up ways to be rewarded for doing nothing! Sad.
 
It's a double edged sword. Leaving fibre operators to themselves have resulted in entry prices going up 50% in the last two years. So complete deregulation is also not the answer. Also nothing will come of handing out spectrum as Vodacom already had their claimed 50% reduction and they don't see any more room for it. Better to give spectrum to those that have used it effectively but this isn't a very popular idea and isn't being considered.
 
joker08 said:
Dont know about data rollover, but correct me if I am wrong - oob usage cant happen anymore, Customers need to purchase a data bundle to use internet
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It can, if you haven't had a bundle. And also operators have argued for and implemented OOB if a bundle expires.
 
If Telkom can offer 1TB (technically 1048.5GB) for R1000, why can't others offer a similar price?
I understand they can sell that at R1000 since they know not everyone will come close to using it, but the fact that R1/GB is even a thought means it's possible.

Why is R5/GB prepaid not a staple in a world where R1/GB can even exist?
 
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rpm said:
Who is that?
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Well if we go by your notion of "you get what you pay for" then MTN and Vodacom are obviously offering the premium service already and don't need additional spectrum to provide what they do. So it's better to give is to someone that's will put it to better use and use it to continually drive down prices.
 
Swa said:
It's a double edged sword. Leaving fibre operators to themselves have resulted in entry prices going up 50% in the last two years. So complete deregulation is also not the answer. Also nothing will come of handing out spectrum as Vodacom already had their claimed 50% reduction and they don't see any more room for it. Better to give spectrum to those that have used it effectively but this isn't a very popular idea and isn't being considered.
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That's dependent on operator?
And a lot has to do with rand dollar as well, track that during the same time.

That said, most of those price increases should not have been needed, the network has already been built and people should be grandfathered in.
 
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