Following recent public complaints and a social media campaign on twitter (#DataMustFall), the South African Government decided to investigate the concerns through the Competition Commission.[1]

On 23rd May 2017, Telecommunications Minister Siyabonga Cwele, in his budget presentation, signalled his department’s intention to ask the Competition Commission to conduct an investigation in cellphone and telecommunications industry.[2]

The telecoms minister last year issued a policy directive to the Independent Communications Authority of South Africa (ICASA) to prioritise an inquiry and regulations to ensure “effective competition in broadband markets”.

Cwele said the cost of data was not about to drop anytime soon due to a lack of competition in the telecommunications market‚ which is dominated by four big operators – Vodacom‚ MTN‚ CELL C and Telkom.

Economic Development Minister Ebrahim Patel made a further announcement in his budget speech, that the Competition Commission will conduct the investigation[3] complementary to the existing inquiry being conducted by ICASA.

“To promote the new data-driven economy and address high data costs, and following discussion with Minister Cwele, I will request the Competition Commission to conduct a market inquiry into this sector and to work with other regulators to establish the facts, identify measures to reduce data costs and make recommendations to government,” he said.

However, these inquiries take a long time and the ICASA inquiry is expected to be completed in 2-3 years.[4]

To view a comparison of 1GB data costs in African countries, please click here.

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[1] http://www.enca.com/south-africa/datamustfall-demands-cellular-providers-to-lower-their-prices

[2] http://www.timeslive.co.za/local/2017/05/24/Competition-Commission-probe-on-high-cost-of-data-on-the-cards

[3] http://www.enca.com/money/competition-commission-to-probe-high-data-costs; https://www.businesslive.co.za/bd/national/2017-05-26-competition-watchdog-to-probe-sas-high-data-costs/

[4] https://www.businesslive.co.za/bd/national/2017-05-29-low-priority-for-high-data-price-probe/