Competition Commission and MTN agree on the reduction of data prices

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09 Jul 2020

The Competition Tribunal has confirmed as an order the consent agreement between the Competition Commission and Mobile Telephone Networks (Pty) Ltd (MTN) on the reduction of data prices.

In a statement, the Competition Commission welcomed the decision and indicated that the agreement follows the discussion between the Commission and MTN after the Commission initiated the Data Services Market Inquiry (DSMI) and published its final report with findings and recommendations in December 2019.

“The consent agreement is entered into in full and final settlement of the findings in the final report of the DSMI that MTN charged high prepaid data prices in South Africa.”

Included in the agreement is:

  •  MTN to reduce the price of 30-day prepaid bundles up to 1GB, with the 1GB monthly bundle being reduced to R99;
  •  MTN to offer all customers a capped daily free Data bundle to use in Ayoba; and
  •  MTN to offer all customers Zero-Rated Access to certain Public Benefit Organisations and other websites, subject to a maximum of 500 websites, focusing on education, healthcare and job recruitment via MTN’s own website, which shall be capped at 500MB per month per customer and be subjected to terms and conditions listed in the settlement. Websites include health institutions, public universities, TVET colleges, educational resources, educational institutions and employment portals.

The Commission declared that it will “institute ongoing monitoring of pricing levels and profitability into the future until the market becomes more competitive”.

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(This article is provided for informational purposes only and not for the purpose of providing legal advice. For more information on the topic, please contact the author/s or the relevant provider.)

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