#DataMustFall: Network providers say their hands are tied

Business

Network providers making oral submissions to the Competition Commission’s market inquiry on data services allege capacity constraints and investment considerations hamper the feasibility of lowered data costs.

On the first day of the inquiry held at the Department of Trade and Industry headquarters in Sunnyside, Pretoria, independent institutions made their submissions alleging extremely high prices of data affect the poorest of the poor the most.

Major networks like Vodacom, MTN South Africa, Telkom and Cell C, were represented on the second day of the public hearings making their oral submissions to the commission.
The inquiry is being chaired by Arthur Mahuma, Dr Liberty Mncube, Bakhe Majenge and Jason Aproskie.

Shameel Joosub, on behalf of Vodacom, told the commission that their data costs were cheaper the more customers bought and that they had a variety of bundle offers to suit the poor population.

Joosub in answering questions put him by Aproskie about the possible effects of regulation of rates, said attempts to regulate a competitive market were strange and would result in less flexibility for competition

MTN’s Godfrey Motsa┬ásaid a flat rate would only end up benefiting citizens who were well off.

Motsa added that in comparison to other African countries, South Africa was leading in terms of affordability based on the average income.

Pretoria News

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