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Icasa probe reveals findings into SA data prices, says it will “intervene” to reduce them

Icasa is nearing the completion of an analysis into the cost of data in South Africa and has revealed the major discrepancies between bundle pricing in some of the findings.

The probe was launched following public complaints of data pricing in South Africa. Icasa found that out-of-bundle rates were significantly high and larger bundles used up less data when used compared to smaller bundles.

Icasa acting chairperson, Rubben Mohlaloga, briefed briefed the Select Committee on Communications and Public Enterprises on Wednesday with the latest findings.

Mohlaloga said an analysis of data costs since 2010 reveal a change in data costs since the advent of over-the-top services like Whatsapp and Skype and the penetration of smartphones. As a result, and also because of the call termination rate regime, voice tariffs have gone down.

“The out-of-bundle and in-bundle price differentials are relatively high, depending on the kind of bundle that consumers purchase. If you buy higher bundles, then you spend less per MB. If you buy a small bundle, say 100 or 500 megabytes, then you spend higher per mb. Once you are out of bundle, it is even worse – you move from an average of 5 cents to R2. That is an area of concern and we think that it needs to be nipped in the bud,” he said.

Mohlaloga also highlighted differences in costs in South Africa versus other countries and in bundle pricing

“While Vodacom charged South Africans up to R270 for a 2GB data bundle, in Tanzania, consumers paid less than R100 for the same package.”

“When one looks at in-bundle rates per MB for prepaid packages, if a consumer buys 100 MB of data from Vodacom, which is R29, they will spend 29 cents per MB. On the other hand, if a consumer buys 10GB of data, they will pay six cents per MB. The crazy one is the out-of-bundle rate per megabyte. Vodacom, once you run out of your bundle, with them you are going to spend R2 per MB. From that five cents, you jump to R2.”

Icasa said it’s implementing a number of interventions under its “cost to communicate programme” in a bid to bring costs down.

Mohlaloga said the programme includes, among others, this analysis, as well as a task team that was established following a Memorandum of Understanding with the National Consumer Commission, which looks at complaints from members of the public on issues that include the expiring and disappearing of data.

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