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...

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.

Money Matters: Do South African consumers complain enough about prices?

Money Matters: Do South African consumers complain enough about prices?

Consumer journalist Megan Power discusses whether South African consumers speak out enough when they are dissatisfied.

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...

Tbo Touch confident about "evidence based" #DataMustFall case

Tbo Touch confident about "evidence based" #DataMustFall case

Tbo Touch and Jan Vermeulen weigh on on the #DataMustFall debate

Government committed to reduce data costs - Minister Cwele

Government committed to reduce data costs - Minister Cwele

Cwele says he's approached Icasa to do market study on data costs, but competition between providers is key to driving down rates.

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.

Complex issues around slashing data prices in #datamustfall 30-day ultimatum

Complex issues around slashing data prices in #datamustfall 30-day ultimatum

Mobile network providers are not likely to slash prices amid #datamustfall campaign.

#datamustfall is demanding lower prices from cellphone networks

#datamustfall is demanding lower prices from cellphone networks

Cellphone network providers have been given 30 days to make data cheaper.

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.

Warrent Buffet's son shares some wisdom at the World Economic Forum on Africa

Warrent Buffet's son shares some wisdom at the World Economic Forum on Africa

The son of American business magnate Warren Buffett offers some advice to Stephen Grootes at the World Economic Forum on Africa.

Broadband roll-out to reach rural and poorer areas, says telecomms minister

Broadband roll-out to reach rural and poorer areas, says telecomms minister

Minister of Telecommunications and Postal Services, Dr. Siyabonga Cwele explains the benefits of a proposed ICT policy.

Minister Cwele's no-show angers telecommunications portfolio committee MPs

Minister Cwele's no-show angers telecommunications portfolio committee MPs

Members of parliament were dismayed by minister Cwele's failure to appear at a meeting about details of the DTT roll-out plans.

'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
Meet Whitey Basson (the retail guru who turned Shoprite into a R127bn behemoth)

Meet Whitey Basson (the retail guru who turned Shoprite into a R127bn behemoth)

The Money Show’s Bruce Whitfield interviews the former CEO of Africa’s largest retailer by far.

CT airport shooting attempted hit on gang boss allegedly linked to '28s' -expert

CT airport shooting attempted hit on gang boss allegedly linked to '28s' -expert

A policing expert explains that the airport shooting may be linked to the shooting at a Stellenbosch nightclub this past weekend.

Almost 30 million SA ID numbers compromised after site hacked

Almost 30 million SA ID numbers compromised after site hacked

Independent Marketing Consultant in the Technology Space, Andrew Fraser says this looks like a leak and not a hack.

Cape Town International Airport shooting could be gang related - ACSA

Cape Town International Airport shooting could be gang related - ACSA

The incident happened in the early hours of Wednesday morning.

Kloof Street residents living in fear as crime multiplies

Kloof Street residents living in fear as crime multiplies

A Cape Town man was stabbed to death on Saturday while trying to assist two women who were being mugged on Kloof street.