Competition Commission wants to hear your views on high data prices in SA
Following the announcement that it would be investigating high data prices, the Competition Commission has outlined which issues it will be addressing, and has called for public comment from those involved or who have been affected by the high-cost of data services.
Stakeholders include all consumers, companies, organisations and other bodies that have an interest in data and telecommunications markets, including those directly involved in these markets and those that are affected by such markets more broadly.
The submissions are not limited to the specific issues identified by the Commission and may be extended to other issues which may be relevant to the inquiry and may impact the data prices faced by businesses, government and consumers in South Africa.
In an explanatory note, the Commission said that it initiated the inquiry because it believes there are features in the market that prevent, distort or restrict competition within the sector.
Through the inquiry, the Commission said that it aims to determine what may cause or lead to high data prices, with a view to ultimately make recommendations that will result in lower prices for data services.
The inquiry has been initiated in response to a request by economic development minister, Ebrahim Patel, who also has expressed concerns over high data costs and highlighted the importance of data affordability.
Factors that will be assessed include:
- Market structure;
- The general adequacy and impact of the current regulatory regime;
- Strategic behaviour by large fixed and mobile incumbents;
- Costs faced and profits earned by fixed and mobile network operators;
- Current arrangements for sharing of network infrastructure;
- Investment in infrastructure by operators and access to / allocation of spectrum as they relate to data services price and competition concerns; and
- The adequacy of regulation to promote new South African entrants (particularly historically disadvantaged individuals).
Submissions close on 1 November. The inquiry is expected to be complete by September 2018, after which the Commission will publish its findings.
Read: High data prices can force small businesses to close: Ramaphosa
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