South Africa Extends Deadline To MTN, Vodacom

South African mobile operators now have an extra month in which to reduce data prices, after the Competition Commission (CompCom) extended the deadline. CompCom announced it has separately had productive engagements with Vodacom and MTN, as well as other affected MNOs with regard to the findings and recommendations. Given that the engagements with the operators are at an advanced stage, CompCom decided to extend the two-month deadline by one month to allow sufficient time to conclude these engagements.

In December 2019, CompCom found that data prices are excessive and the market is highly dominated by Vodacom and MTN. It then recommended that service providers reduce the price of data by up to 50%, or face prosecution. The inquiry was initiated by the Commission in August 2017. This followed persistent concerns expressed by the public about the high level of data prices and the importance of data affordability for the South African economy and consumers.

The operators were not happy with the recommendations. MTN stated it “respectively disagrees” with the recommendations made by the Commission on data price cuts in South Africa. Vodacom said it has consistently stated that delayed spectrum allocation has impacted the rate at which data prices could have fallen.

Full Content: Telecom Paper

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