data costs

JOHANNEBURG, SOUTH AFRICA – SEPTEMBER 19, 2017: Rights2Know protestors gathered outside the Vodacom head office on September 19, 2017 in Johannesburg, South Africa. Right2Know activists protested outside the Gauteng head offices of cellphone companies demanding cheaper airtime and data. (Photo by Gallo Images / Daily Sun / Christopher Moagi)

Will data fall? Government inquiry set to probe high costs next month

Well, we’ve asked, but will we finally receive? The Data Services Market Inquiry will attempt to find out if bundles cost too much.

data costs

JOHANNEBURG, SOUTH AFRICA – SEPTEMBER 19, 2017: Rights2Know protestors gathered outside the Vodacom head office on September 19, 2017 in Johannesburg, South Africa. Right2Know activists protested outside the Gauteng head offices of cellphone companies demanding cheaper airtime and data. (Photo by Gallo Images / Daily Sun / Christopher Moagi)

The Competition Commission will next month hold public hearings for the Data Services Market Inquiry. The Commission initiated the Market Inquiry following numerous complaints relating to data services in the country, and had this to say:

“The Market Inquiry seeks to understand features in the market and the value chain that may cause or lead to high prices for data services. It also seeks to make recommendations that would result in lower prices for data services.”

In August last year, the Commission launched a Market Inquiry into data services with the release of the terms of reference and call for submissions. A number of stakeholders in the service sector made submissions in response to the call for submissions.

These stakeholders include the Internet Service Providers’ Association, Media Monitoring Africa, MTN, the Right2Know Campaign, Tarifica, Telkom, the Alliance for Affordable Internet, amandla.mobi, Broadband Infraco, Cell C, DG Murray Trust, Electronic Communications Network and Vodacom.

The Market Inquiry will be held on 17 and 18 October 2018 in Gauteng, following the extension of the Market Inquiry’s deadline to 31 March 2019. The Commission said.

“The Market Inquiry will cover all market participants involved at any point in the value chain for data services that are provided to customers such as government, businesses, trade associations, public entities, regulatory authorities and end-consumers in South Africa.”

What you need to know about the Data Services Market Inquiry

Non-confidential versions of these submissions are available on the Commission’s website on www.compcom.co.za/data-market-inquiry.

The Market Inquiry is being conducted in response to a request from Economic Development Minister Ebrahim Patel. The concerns of Minister Patel relate to high data costs in South Africa and the importance of affordability for the South African economy and consumers.

Stakeholders who wish to participate in the public hearings by making oral submissions should communicate their interest by no later than 21 September 2018. Expressions of interest must be sent to the Commission’s Inquiry team on datainquiry@compcom.co.za.

The Commission will require participating stakeholders to make written submissions prior to the oral submissions.

Written submissions should be received by the Commission by no later than 11 October 2018. Submissions in respect of the public hearings should focus on the following key questions:

Are prices in South Africa (whether mobile, fixed or other) higher than they ought to be?

To the extent that prices in South Africa are higher than they ought to be, what are the factors that drive these outcomes?

How can these factors be effectively remedied?

What is the impact of data prices and access to data more broadly on lower-income customers, rural customers, small businesses and the unemployed?

How important are affordable prices for these customers?