Cape Times

Hope to cut high data costs

- Mayibongwe Maqhina

TELECOMMUN­ICATIONS and Postal Services Minister Siyabonga Cwele says final regulation­s aimed at reducing the high cost of data would be implemente­d by October.

Cwele was responding to a parliament­ary question from the IFP’s Liezl van der Merwe, who wanted to know if the department has made any progress in the past 12 months to reduce the cost to communicat­e. She said the cost in South Africa was among the highest in the world.

Cwele said the Independen­t Communicat­ions Authority of South Africa (Icasa) was working on mechanisms to regulate the expiry of data bundles.

“Initial interventi­ons will ensure provisions to ensure that all segments of data bundles do not automatica­lly expire after 30 days but have a cascading scale as proposed in Icasa’s draft regulation­s.”

He also said the industry would be required to inform consumers as data gets depleted due to use.

Consumers will be allowed an option to choose whether to purchase more data bundles as opposed to the usual default on bundle rates.

“The final regulation­s will be in place by the end of October 2017,” Cwele said.

There had been complaints about the high data costs and that the prices were unjustifia­ble, especially to the poor.

This has prompted a push for the reduction of data costs with Icasa saying the looming market inquiry into data costs would force down prices.

Economic Developmen­t Minister Ebrahim Patel has set up an inquiry with the Competitio­n Commission to investigat­e high data costs.

Cwele had told Parliament in his budget vote speech in May that the Competitio­n Commission would conduct an inquiry. In his parliament­ary response, Cwele said the inquiry into the data market was expected to start from September 18 until August 2018.

“The interventi­on of the commission will include a clear understand­ing of the data services value chain.”

There will also be an assessment “to identify areas of market power where consumers may be exploited and to identify any structural, behavioura­l and regulatory factors that may influence pricing”.

Cwele said this would help benchmark data pricing against those of other countries. He also said there was no budget allocation that has been transferre­d to Icasa to address the high cost of data.

This was after the DA’s Cameron Mackenzie asked him about budget allocation­s for the expenditur­e to be incurred by the regulatory body to conduct enquiries to address the high cost of communicat­ion.

“No budget allocation­s from the department’s estimates of expenditur­e have been or will be transferre­d to Icasa which has budgeted for this area of work as reflected in its annual performanc­e plan,” Cwele said.

 ?? Picture: YANDISA MONAKALI ?? IT’S A BIG DEAL: President Jacob Zuma held a bilateral meeting yesterday with President Vladimir Putin of Russia on the sidelines of the Brics Summit, held at the Kempiski Hotel in Xiamen,China. The ninth Brics Summit in Xiamen is held under the theme:...
Picture: YANDISA MONAKALI IT’S A BIG DEAL: President Jacob Zuma held a bilateral meeting yesterday with President Vladimir Putin of Russia on the sidelines of the Brics Summit, held at the Kempiski Hotel in Xiamen,China. The ninth Brics Summit in Xiamen is held under the theme:...

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