MTN still has to answer for expensive data: Competition Commission

The Competition Commission says MTN South Africa still has a case to answer despite its decision to cut data tariffs. MTN has announced that it will follow Vodacom to reduce the tariffs of monthly data bundles of 1GB by up to 50%.

MTN in collaboration with the Competition Commission, is proud to announce the development of a set of consumer-focussed solutions including; price reductions, free data, free access to public benefit websites, and more in the quest for a modern connected life for all.

— MTN South Africa (@MTNza) March 20, 2020

The first solution, that will be implemented as of 20 April 2020, is price reductions of up to 50% on all 30-day data bundles below 1GB, and a 33% reduction on our 1GB monthly data bundle. These options will be available to customers via *135# and the new MTN app.

— MTN South Africa (@MTNza) March 20, 2020

The Competition Commissioner Thembinkosi Bonakele says while the commission welcomes MTN’s unilateral decision to cut data costs, the move will not absolve it from its case on charging excessively for data.

“This is good for consumers. I should also correct that this was not done in agreement with the commission. This is a marker response by MTN. We were still talking to them. We’re surprised. We still have to conclude with them. We are prosecuting a past conduct. They still have to answer. This doesn’t cover that.”

In the video below, MTN announces a 9.7% increase in revenue and says that it will be changing data prices. 

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MTN announced that it will reduce the tariffs of its monthly data bundles of 1GB and below by between 25-50% while the 1GB monthly bundle will decrease by 33% to R99. This will be effective from April.

MTN says it has developed a set of voluntary undertakings in the form of a social contract to further address the affordability of data services for its customers.

The mobile network also announced that it will be providing each customer with a free 20MB daily or the equivalent of 600MB monthly. This will be done through its instant messaging service called Ayoba. The platform currently has 500 000 customers in South Africa.

With immediate effect, the Ayoba Data Lifeline will be available. Every MTN customer will receive 20MB FREE data each day (600MB FREE data monthly), made available on the Ayoba instant messaging app: https://t.co/z69znoSsc6. pic.twitter.com/MVubJZE94f

— MTN South Africa (@MTNza) March 20, 2020