Citizen reporter
2 minute read
30 Apr 2020
12:17 pm

MTN becomes last network to reach data price cut agreement with Competition Commission

Citizen reporter

The Commission reached similar agreements with Telkom mobile, Cell C and Vodacom before they had even published the findings of their inquiry into South African mobile data prices.

A billboard advertising cellphone network MTN in the capital Yaounde, Cameroon 07 October 2018. Picture: EPA-EFE / NIC BOTHMA

An order of consent agreement between the Competition Commission and mobile network giant MTN will see network slash the prices of all its 30-day bundles under 1GB.

Additionally, MTN will offer its customers zero-rated access to a range of up to 500 websites which focus on topics related to education, healthcare and job recruitment. However, that access is capped at a limit of 500MB per user, per month.

The terms of this agreement were laid out in a press release issued by the Commission on Thursday.

“The agreement follows a protracted discussion between the Commission and MTN after the Commission initiated the Data Service Market Inquiry (DSMI) and published its final report with findings and recommendations,” said the Commission.

Furthermore, the Commission claims to have found, among other things, that data prices were high in South Africa and that MTN and Vodacom should independently reach an agreement with the Commission within two months of the publication of the report.

The primary goal of said agreement was to see a “substantial and immediate” reduction in tariff levels, especially for monthly prepaid bundles.

Under the terms of the agreement, MTN will also have to communicate these reductions to all channel partners prior to 1 May before “endeavouring” to apply the price reductions.

In an effort to be transparent about this, the network will also have to enable all its customers to manage their data usage through a USSD menu or via the MTN app and website at no extra charge.

MTN is the last network to come to the party as the Commission has already reached similar agreements with Telkom mobile, Cell C and Vodacom.

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