BUSINESS Icasa’s plans to reduce the cost of data based on increased competition

THE Independent Communications Authority of South Africa (Icasa) will table a report on its findings in bringing the cost of data down.

This follows an investigation toto reducing data costs.

Acting chairman of Icasa Rubben Mohlaloga said a report would be released in April.

During the debate on the State of the Nation address this week, Postal Services and Telecommunications Minister Siyabonga Cwele said the Icasa report will give guidance on how costs would be reduced.

He said the drop in costs would be realised if there was more competition in the market. He wanted the market to be opened up and more small players involved to increase competition.

“In 2016, I issued a policy directive mandating Icasa to conduct an inquiry to see if there is effective competition in the broadband market segments and recommend corrective remedies or regulations to bring the price down,” said Cwele.

“The regulator has set a deadline of April 2017 to do its work,” he said.

Mohlaloga said one of the things the report would look at is competition in the market.

“The next stage is the most critical one, where we will be asking for specific information from the operators,” he said.

“That was an exercise that will produce an outcome. Each operator was using a different model to charge prices for data. We will say if this is what it costs to produce a megabyte, say it costs 5c but you sell it for 20c, we will introduce a tariff,” he said.

Mohlaloga warned they would not come up with a shotgun approach.

The government has been under pressure since last year to reduce data costs. The portfolio committee on postal services and telecommunications has conducted public hearings on the matter.

Mohlaloga said he did not think the reduction in costs would impact on the balance sheet of the operators.