Data prices fall after Competition Commission, Vodacom reach agreement

Finally some good news after a long week – wait is it only Tuesday? 

Following Vodacom’s settlement with the Competition Commission, data prices are set to fall, with company forced to extend its services to allow for “lifeline-bundles” and provide free access to essential services.

The Competition Commission made the announcement at a press conference on Tuesday, saying that cost cuts will save the consumer R2.4 billion.

The regulator has been tough on companies they say are charging “excessive prices” for data, with South Africans paying exorbitant fees to get online. 

Competition commissioner Tembinkosi Bonakele said that South African’s were paying more for data than their African counterparts. 

“South Africa performs poorly compared to other countries on data costs, compared to other countries. South African prices are higher than in other countries serviced by Vodacom and MTN.” 

“This finding is perhaps demonstrative of poor structuring of data services.” 

Vodacom and MTN must reduce prices 

The commission said Vodacom and MTN must immediately reduce prices, with Bonakele arguing this could be between 30% and 50%.

He said that Vodacom and MTN must also independently reach an agreement with the commission on the reduction of 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.

In addition to this ruling, MTN and Vodacom must cease practices that are “anti-poor” and

Lifeline bundles

“Must ensure that all citizens have access to data regardless of their economic position.”

Bonakele said that the agreement was something that might make a massive difference in the lives of South Africans.

“The commission is delighted to announce that it has reached an historic agreement with vodacom to reduce the cost of data,” he said. 

“Vodacom has agreed to a two year reduction on monthly bundles, prices will come down by 30%.”

“Data bundles will fall from R149/gb to R99/gb. This represents a 34% price decrease. Customers that buy smaller bundles, which is usually the poorest of the poor, will see the greatest benefit of this agreement.” 

Free data for important services

He said that service providers would also come to agreements with education institutions to power education portals free of charge.

“Vodacom will expand its 0-rating offering to all public schools and universities. They will be able to apply to get their portal rated through a clear and transparent process.” 

Wikipedia will be also be free to use from here on out, and customers will be able to apply for jobs through approved job finding services for free.

“This is with the aim of improving employment opportunities for the youth,” he said. 

Facebook, news, weather and health services will also be made available for free.

This is a developing story