Why Competition Commission probe won't bring down high data costs

Minister of Telecommunications and Postal Services Siyabonga Cwele wants the Independent Communications Authority of South Africa (Icasa) and Competition Commissioner to conduct an inquiry into why South Africa's data prices for cell phones are so high.

Research ICT Africa director, Dr Alison Gillward, says the Competition Commission doesn't really have the expertise, and the inquiry into data costs may take a long time.

On the other hand, Gillaward says Icasa does not deal with the issue effectively because fundamental competition frameworks, as per legislation, is not properly followed.

The critical part of this competition environment is the undertaking of a market review, the establishment of dominance in this market and abusive dominance, if there is any.

Dr Alison Gillward, Research ICT Africa director

And until these are done, the complex factors that lead into the cost drivers and prices cannot really be assessed and prices be regulated effectively.

Dr Alison Gillward, Research ICT Africa director

Gillward says even if prices are regulated, there will still be large number of people who cannot afford to buy data.

Getting the price down is a far more complex process than the Competition Commission having to deal with it.

Dr Alison Gillward, Research ICT Africa director

I'm not sure if Competition Commission is gonna solve the problem, certainly not in the short term.

Dr Alison Gillward, Research ICT Africa director

Listen to the audio below to hear why four big networks may not be acting competitively...


This article first appeared on 702 : Why Competition Commission probe won't bring down high data costs


Recommended

by NEWSROOM AI
Read More
Data Must Fall! Government puts pressure on mobile networks to drive down costs

Data Must Fall! Government puts pressure on mobile networks to drive down costs

Data Must Fall! CapeTalk’s John Maytham interviews Stuff’s Craig Wilson.

Post Office tries to rise from the ashes, sets sights on banking license

Post Office tries to rise from the ashes, sets sights on banking license

The Money Show’s Bruce Whitfield interviews SA Post Office CEO Mark Barnes.

Millennial trends maven Siya Beyile on building style empire, The Threaded Man

Millennial trends maven Siya Beyile on building style empire, The Threaded Man

Siyabonga Beyile (23) opens up about the birth of his online platform 'The Threaded Man' and how his network is going global.

5 tips on how to save data

5 tips on how to save data

Network operators aren't cheating you out of data, explains tech expert Duncan McLeod.

What do Sars, Brangelina, #DataMustFall have in common? They broke the internet!

What do Sars, Brangelina, #DataMustFall have in common? They broke the internet!

7 most-read, most-talked-about "The Money Show" articles of the past week...

Faster affordable data network on the way

Faster affordable data network on the way

Former FNB CEO Michael Jordaan and other prominent South African business people are working on developing a 5th generation mobile network.

Iphupha Lami helps township entrepreneurs and artists realise their dreams

Iphupha Lami helps township entrepreneurs and artists realise their dreams

Small Business Awards nominee, Iphupha Lami Improvements is a development platform that gives exposure to emerging creatives.

Telecomms Minister's legal challenge to Icasa over broadband sale

Telecomms Minister's legal challenge to Icasa over broadband sale

Minister Siyabonga Cwele will take Icasa to court after their auction on broadband that may give network giants a massive leg up.

Icasa and Telecommunications Minister at loggerheads over internet spectrum

Icasa and Telecommunications Minister at loggerheads over internet spectrum

Icasa made an announcement to auction of internet spectrum, going against Minister of Telecommunication's who has other plans.

Telecomms Minister to sue Icasa for 'jumping the gun' on broadband sale

Telecomms Minister to sue Icasa for 'jumping the gun' on broadband sale

Minister Siyabonga Cwele threatens to sue communications regulator Icasa for its plan to auction off broadband spectrum in SA.

Internet costing average South Africans 40% of monthly income

Internet costing average South Africans 40% of monthly income

The cost of internet connectivity in South Africa is higher than the global average.

EC govt to probe after PE Mayor Danny Jordaan flouted appointment procedure

EC govt to probe after PE Mayor Danny Jordaan flouted appointment procedure

Municipal representatives are adamant that due process was followed when appointing embattled head of safety & security Linda Mti.

SABC's 90% music quota under scrutiny

SABC's 90% music quota under scrutiny

Friday Stand In Slikour discusses SABC's decision to increase its local music quota to 90% with Sipho Sithole and the listeners.

'What are we going to do with this land?' asks our #FridayStandIn Slikour

'What are we going to do with this land?' asks our #FridayStandIn Slikour

The process of land redistribution and what land ownership means for dispossessed communities dominated the #OpenLine.

'Regulating OTT services a snub to tech innovation and mobile consumers'

'Regulating OTT services a snub to tech innovation and mobile consumers'

Mobile network operators Vodacom and MTN want Over The Top (OTT) services such as WhatsApp and Skype regulated.

SA Post Office has been hit by five strikes since 2011

SA Post Office has been hit by five strikes since 2011

The Minister of Telecommunications addresses challenges at the South African Post Office following reports of another strike.

Chronic fiscal woes for SA Post Office

Chronic fiscal woes for SA Post Office

In addition to labour relations, poor financial management has been plaguing this state entity.

Popular articles
Shift to stage 2: Over 800 megawatts back on line from Cahora Bassa - Eskom

Shift to stage 2: Over 800 megawatts back on line from Cahora Bassa - Eskom

Eskom COO Jan Oberholzer predicts Stage 2 load shedding for Friday and Saturday and energy expert Chris Yelland also weighs in.

Capetonians water consumption down by about 536 million litres of water a day

Capetonians water consumption down by about 536 million litres of water a day

Mayco member for water and waste, Xanthea Limberg talks to Kieno Kammies about Cape Town's latest dam levels.

[WATCH] New Zealand unites behind Muslim community #WeAreOne

[WATCH] New Zealand unites behind Muslim community #WeAreOne

NZ PM Jacinda Ardern led a 2-minute silence at AL-Noor mosque on Friday as Muslim Call to Prayer broadcast live on national TV.

Distraught caller describes harrowing experience on Baden Powell Drive

Distraught caller describes harrowing experience on Baden Powell Drive

A CapeTalk caller explained to Lester Kiewit how he went through flames and over rocks, and debris to escape his car being stoned.

Here's how to check your load shedding schedule in Cape Town

Here's how to check your load shedding schedule in Cape Town

Eskom has warned that more power cuts can be expected as maintenance continues over the next twelve months.