JOHANNESBURG, July 21 (ANA) – The Portfolio Committee on Economic Development on Friday, welcomed the investigation by the Competition Commission into data costs in the country that are among the highest in the world.
Economic Development Minister, Ebrahim Patel, is expected to announce the establishment of the market inquiry into the state of competition in the data market and the inquiry’s terms of reference by September 1, the committee said.
“It is not just the telecommunications industry which is reliant on data, but that accessibility to data has taken over our lives from school learners wanting to study, or a university student wanting to do research or booking an online ticket. The world as we know has changed and it seems we need data for almost every aspect of our lives,” chairperson Elsie Coleman said in a statement.
“The high costs associated with data suppliers such as MTN and Vodacom must be looked into as the costs for data in other countries are far cheaper than in South Africa. We look forward to the results of this investigation but more importantly we urge the suppliers to bring down the costs of data immediately so that all people living in South Africa can enjoy the benefits of being able to connect through technology which is long overdue.”
On May 25, Patel announced that he would be asking the Competition Commission to the conduct the probe into high data costs in South Africa.
Tabling his department’s budget vote, Patel cited the Economist newspaper which published a story describing data as the world’s most valuable resource and a driver of growth and change.
“Yet the growth of this data-driven economy is constrained by high data costs, which affect users of cell-phones and laptops and businesses who require high volumes of data,” he said at the time.
“To promote the new data-driven economy and address high data costs, and following discussion with [Telecommunications Minister Siyabonga] 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.”
The inquiry follows a public campaign against South Africa’s data costs, which according to studies, are among the highest in the world.
Last year, Parliament held public hearings into data costs. At the time, MPs urged mobile operators to cut their costs and threatened that should they not, the National Assembly would do it for them.
– African News Agency (ANA)
