\u201cAll Networks have 30 days to make a change! We will all move our subscription to the network that cares about its customers #datamustfall,\u201d said Tbo Touch on Twitter.<\/p>\n
Touch also said he was going to meet with ICASA to discuss the price of mobile data.<\/p>\n
Thousands of South Africans joined his campaign, seeking cheaper data prices.<\/p>\n
The Right2Know<\/strong><\/a> campaign also supported the movement, saying the high price of data and airtime was hurting the right of South Africans to communicate.<\/p>\n \u201cToo many ordinary South Africans are deprived of their right to receive and impart information because of rip-off airtime and data costs,\u201d said Right2Know.<\/p>\n It suggested the following:<\/p>\n It was noted that Vodacom, for example, had not reduced its data prices since April 2013.<\/p>\n MTN, however, claimed<\/strong><\/a> its data prices had decreased by 73% in the previous 5 years.<\/p>\n Vodacom CEO Shameel Joosub said<\/a><\/strong> that the authorities criticising data prices weren\u2019t taking promotional offers into account when comparing pricing to international prices.<\/p>\n \u201cWe\u2019re selling 243 million-odd bundles through promotions just on data. 696 million bundles in total,\u201d said Joosub.<\/p>\n \u201cIf you don\u2019t take bundles or promotions into account, how can you come up with a proper understanding of what the data rates are?\u201d<\/p>\n EE Publishers highlighted<\/a><\/strong> that comparisons between South Africa\u2019s data prices, and prices in countries like Nigeria and India, were unfair.<\/p>\n In Nigeria, the article highlighted, 4G coverage was limited to the centre of three major urban areas, and prices were also misleading because the Nigerian currency had almost halved relative to the rand throughout the course of the previous year.<\/p>\n India also had limited 4G coverage which was almost exclusively available in the centres of large urban areas.<\/p>\n The report also highlighted that Nigeria and India both have very high population densities \u2013 meaning it is easier to reach more people in smaller areas.<\/p>\n This drives down costs, making it easier to offer lower prices.<\/p>\n The article also highlighted that the movement had also overlooked that there were many countries with similar or higher data costs than South Africa \u2013 including the UK and France.<\/p>\n Acting ICASA chairperson Rubben Mohlaloga said<\/strong><\/a> ICASA would look into regulating data prices in South Africa.<\/p>\n ICASA would take guidance from SADC regulations, said Mohlaloga.<\/p>\n \u201cOur main goal is to ensure that all South Africans receive good quality communications services at affordable prices,\u201d said Mohlaloga.<\/p>\n Mohlaloga also said the licensing of spectrum could play a key role in introducing competition to the market, which would help drive the roll-out of affordable broadband services.<\/p>\n Joosub said<\/a><\/strong> the effective price for mobile data on the Vodacom network had declined by 18.9% in the quarter ending June 2017.<\/p>\n \u201cThere is more work to be done on this front, and we will be introducing additional measures this year to give greater control to customers by improving our out-of-bundle pricing,\u201d said Joosub.<\/p>\n Vodacom said it had introduced new initiatives to lower the out-of-bundle data spent by customers.<\/p>\n \u201cTogether with our successful data pricing strategy of making data more affordable, this has resulted in a 56.1% increase in data bundle sales,\u201d Joosub said.<\/p>\n ISPA, meanwhile, said<\/strong><\/a> bringing down the price of mobile data did not appear to be a priority of ICASA.<\/p>\n It said the regulator was stalling by publishing a process to determine which areas to focus on.<\/p>\n \u201cThe priority market for intervention is obvious and there is no need to waste more time,\u201d said Dominic Cull, ISPA\u2019s regulatory advisor.<\/p>\n The Competition Commission announced<\/a><\/strong> it would conduct an investigation into data services in South Africa.<\/p>\n This followed then-Telecommunications Minister Siyabonga Cwele suggesting high data prices may need to be referred to the Commission.<\/p>\n \u201cThe purpose of the inquiry is to understand what factors or features of the markets and value chain may cause or lead to high prices for data services, and to make recommendations that would result in lower prices for data services,\u201d it said.<\/p>\n The Commission said its assessment would include:<\/p>\n The goal was to make recommendations on the following:<\/p>\n The inquiry was slated to begin on 18 September.<\/p>\n MTN said it planned on reducing<\/strong><\/a> its out-of-bundle data prices as it sought to improve data bundle purchase rates and the revenue received from these bundles.<\/p>\n \u201cWe have been reducing these rates basically across the whole portfolio,\u201d MTN CEO Rob Shuter said.<\/p>\n \u201cWe would rather people think about it as the pay-as-you-go rate rather than the out-of-bundle rate.\u201d<\/p>\n MTN South Africa CEO Godfrey Motsa said the changes were particularly aimed at lower-income customers.<\/p>\n \u201cWe look at a certain segment which we call the vulnerable customers, and we reduce the OOB rate to 29c per MB for these users,\u201d said Motsa.<\/p>\n \u201cOnce they reach a certain data usage threshold, this price moves up to 60c.\u201d<\/p>\n MTN announced out-of-bundle data rate cuts of up to 75%.<\/p>\n Customers who did not make use of data bundles would pay R0.29 per MB of data usage, while those who purchase bundles would pay R0.49 once these bundles expired.<\/p>\n MTN also said it would double the value of selected prepaid voice and data bundles for the next two months.<\/p>\n The Competition Commission released a provisional report<\/a><\/strong> which set new rules for mobile networks \u2013 including the pricing of data.<\/p>\n \u201cAn assessment of headline retail prices of all mobile operators demonstrates that consumers of small data bundles, generally being poorer customers, pay inexplicably more on a per MB\/GB basis.\u201d<\/p>\n \u201cRelative to a 1GB bundle, a consumer buying a 100MB bundle will pay roughly twice the price on a per bundle basis for the same data period validity.\u201d<\/p>\n The Commission proposed the following:<\/p>\n Vodacom said<\/strong><\/a> it would review the provisional data price report published by the Competition Commission.<\/p>\n It confirmed it would meet the 14 June deadline for making further submissions and comments on the report\u2019s recommendations.<\/p>\n Vodacom said the data used by the report was out of date, as it was based on data prices from 2016 and 2017 \u2013 which affected the conclusions of the report.<\/p>\n \u201cThe information used … doesn\u2019t take into account hourly, daily, weekly and fortnightly bundles, which is 80% of our volume sales in pre-paid offerings,\u201d added Vodacom.<\/p>\n Vodacom said it needed spectrum, and the lack of spectrum allocated had significantly reduced the pace of data price decreases.<\/p>\n In contrast, said Vodacom, the other countries used in the report already have licensed 4G spectrum \u2013 impacting their ability to lower their data prices.<\/p>\n In his state of the nation address, President Cyril Ramaphosa promised to reduce mobile data prices.<\/p>\n \u201cWherever we have gone, young people have continuously raised the issue of the excessively high data costs in South Africa,\u201d said Ramaphosa.<\/p>\n \u201cTo provide impetus to this process, within the next month, the Minister of Communications will issue the policy direction to ICASA to commence the spectrum licensing process.\u201d<\/p>\n \u201cThis is a vital part of bringing down the costs of data, which is essential both for economic development and for unleashing opportunities for young people,\u201d he said.<\/p>\n Ramaphosa also asked the telecommunications industry to help bring down the cost of data to bring it in line with other countries.<\/p>\n <\/p>\n Following Ramaphosa\u2019s statements, Vodacom told<\/strong><\/a> MyBroadband that it was continuing to push for the licensing of spectrum.<\/p>\n \u201cVodacom recognises the need for affordable data prices and continues to appeal to policymakers and the regulator to license 4G and 5G spectrum to drive down the costs of producing a gigabyte of data,\u201d the mobile operator said.<\/p>\n \u201cA key factor curbing the pace at which data prices could have fallen in South Africa is the fact that there have been lengthy delays in completing the digital migration.\u201d<\/p>\n However, it highlighted that there are several factors even within the spectrum allocation process which could actually hurt data prices.<\/p>\n \u201cAcquiring spectrum with a condition, for example, that requires us to build a network that delivers 4G connectivity to 100% of the population with download speeds above 100mbps would require a staggering investment in the network.\u201d<\/p>\n This investment could result in higher data prices, it warned.<\/p>\n However, it said, it was and would continue to be committed to slashing data prices.<\/p>\n \u201cVodacom has reduced effective data prices by 57% in the past three years and remains committed to providing even greater value to customers.\u201d<\/p>\n The Competition Commission published a report<\/a><\/strong> based on its Data Service Market Inquiry.<\/p>\n The report said there was \u201cscope for price reductions in the region of 30% to 50%.\u201d<\/p>\n It also said that all mobile operators must offer South Africans on prepaid packages \u201ca lifetime package of daily free data.\u201d<\/p>\n It said that this would ensure all citizens have access to data regardless of income levels.<\/p>\n MTN<\/strong>\u00a0 said<\/a><\/strong>\u00a0it disagreed with the analysis and recommendations in the summary report.<\/p>\n \u201cAs we study the full report, we will continue to engage constructively and vigorously defend against overbroad and intrusive recommendations,\u201d said MTN.<\/p>\n Vodacom<\/strong> said it was immediately evident that the Competition Commission and ICASA had a difference in opinion on several issues relating to data prices.<\/p>\n It highlighted the effect that delayed spectrum allocation has had on data price cuts.<\/p>\n \u201cVodacom has consistently stated that delayed spectrum allocation has impacted the rate at which data prices could have fallen,\u201d the network told MyBroadband. \u201cVodacom has reduced the effective price of data by circa 50% since March 2016.\u201d<\/p>\n Telkom<\/strong> said<\/a><\/strong> it agreed with the report\u2019s claims that Vodacom and MTN dominate the South African market.<\/p>\n \u201cTelkom is pleased that the data market enquiry has affirmed the view that the South African market is a duopoly with no effective competition,\u201d Telkom said.<\/p>\n \u201cThe Competition Commission must interrogate the structure of the market and review all the components that give effect to current data prices,\u201d the company added.<\/p>\n Cell C<\/strong> said it welcomed efforts to bring down the cost of data.<\/p>\n \u201cAn industry that promotes sustainable investment, effective competition and affordable services to consumers is a win for all,\u201d said Cell C.<\/p>\n \u201cCell C recognises that lower data costs are a catalyst for economic growth and therefore welcomes steps taken to bring down the cost of data.\u201d<\/p>\n The Competition Commission extended<\/a><\/strong> the deadline for its data recommendations as it was still in \u201cproductive\u201d discussions with Vodacom and MTN regarding these changes.<\/p>\n The deadline was extended until March 2020 to allow sufficient times for the talks to be concluded.<\/p>\n The Commission said the talks were at an \u201cadvanced stage.\u201d<\/p>\n Vodacom<\/strong><\/a> announced it had cut is 30-day data bundles in alignment with the Competition Commission’s findings, which resulted in prices up to 40% cheaper than before.<\/p>\n A 1GB data bundle now costs R99, while a 50MB bundle decreased from R20 to R12.<\/p>\n MTN<\/strong><\/a> also announced that it had reduced the prices of its monthly data bundles in accordance with the Competition Commission’s findings.<\/p>\n Price reductions were between 25% to 50% and meant that MTN would charge no more than R99 per GB.<\/p>\n Both MTN and Vodacom committed to offering free data to access essential services through zero-rated platforms and initiatives.<\/p>\n Cell C<\/strong><\/a> also agreed to offer a lifeline package and access to zero-rated access to essential content.<\/p>\n While data prices have decreased since the #DataMustFall movement started, the lack of spectrum allocation has meant that prices haven’t come close to being halved – which Joosub said was possible with new spectrum.<\/p>\n Data prices of MTN and Vodacom in 2017 and 2020 are compared below.<\/p>\n\n
\nNovember 2016<\/h3>\n
![\"shameel-joosub\"](\"https:\/\/mybroadband.co.za\/news\/wp-content\/uploads\/2016\/10\/Shameel-Joosub.jpg\")
<\/a><\/p>\n
\nJanuary 2017<\/h3>\n
\nApril 2017<\/h3>\n
\nJuly 2017<\/h3>\n
\nAugust 2017<\/h3>\n
\n
\n
\nAugust 2018<\/h3>\n
![\"\"](\"https:\/\/mybroadband.co.za\/news\/wp-content\/uploads\/2017\/05\/Godfrey-Motsa2-1.png\")
<\/a><\/p>\n
\nJanuary 2019<\/h3>\n
\nApril 2019<\/h3>\n
\n
\nJune 2019<\/h3>\n
![\"Cyril](\"https:\/\/mybroadband.co.za\/news\/wp-content\/uploads\/2018\/03\/Cyril-Ramaphosa-Bloomberg.jpg\")
<\/a><\/p>\n
\nJuly 2019<\/h3>\n
\nDecember 2019<\/h3>\n
![\"\"](\"https:\/\/mybroadband.co.za\/news\/wp-content\/uploads\/2019\/04\/Competition-Commission.png\")
<\/a><\/p>\n
\nDecember 2019 – Networks respond<\/h3>\n
\nFebruary 2020<\/h3>\n
\nMarch 2020<\/h3>\n
\nData prices – 2017 to 2020<\/h3>\n