MTN, Vodacom’s revenues to shrink as SA moves to reduce data price 

By Omobayo Azeez

Revenues of two South African telecoms giants, MTN and Vodacom, may suffer blow as the Competition Commission, a regulatory body in the country wants the duo to cut down data prices.

The commission on Sunday released the Data Services Market Inquiry final report with findings and recommendations.

The report, among many other things, recommended that mobile network operators Vodacom and MTN reach agreement within two months with the commission to reduce data prices, particularly for monthly bundles, and to address the structure of data pricing, reducing the cost per MB for smaller sub-1GB bundles relative to the 1GB price.

The report also recommended that these operators reach agreement with the Commission on other pro-poor measures within three months, and these included free data and zero rating of public benefit organisations.

Following the announcement, the commission says it had separately had productive engagements with Vodacom and MTN, as well as other affected MNOs with regards to the findings and recommendations.

“Given that the engagements with the operators are at an advanced stage, the commission has decided to extend the two-month deadline by one month to allow sufficient time to conclude these engagements,” it said in a statement.