MTN, Vodacom directed to reduce data cost, here’s why

A report from the Competition Commission in South Africa has directed MTN and Vodacom, a sister company to Vodafone to reduce data cost for its customer.

According to the commission, it reached an agreement within the companies to reduce data prices.

This, it said, is to address the structure of data pricing, reducing the cost per MB for smaller sub-1GB bundles relative to the 1GB price, particularly for monthly bundles.

The commission said this in its Data Services Market Inquiry final report which included its findings and recommendations.

The report also recommended that these operators reach an 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 has 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.