South African telecoms group MTN is caught up in another dilemma stemming out of the recommendations of the South African Competition Commission to lower data prices. The other telecom company to be considerably affected with the decision would be Vodafone. MTN is on record that it would vehemently oppose the decision.
This week, the Competition commissioner Tembinkosi Bonakele asked both telecom majors –MTN and Vodafone-to reduce the data price, failing which both the service providers would face prosecution. The Commission had instituted an inquiry in August 2017, which revealed that prices charged by the operators were higher in South Africa than in other African markets where they are operating.
Both the operators have said that they would constructively engage with the Commission to sort out the matter and termed the recommendations of the Competition Commission as intrusive because cost and quality differences across countries, including spectrum allocations, may lead to differences in pricing.MTN said its local unit has brought down the effective price of data and the group has also invested over US$3.40 billion in the South African network over the last five years to accommodate growing data demand with limited spectrum availability. Further investments also are in the pipeline.
