#DataHasFallen
MPs tell network operators: Slash costs or we’ll do it for you
NETWORK providers have been told: Cut data costs or the authorities will do it for you. The no-nonsense warning came from Parliament, where a committee has been discussing the reality that South African data costs are among the highest in the world.
The chairwoman of Parliament’s portfolio committee on telecommunications and postal services, Mmamoloko Kubayi, said yesterday that network operators had just over a month to get their act together: Either they trim data costs or the National Assembly would order them to do so.
“Operators can restructure their data plans between now and November or wait for our recommendation on what should happen with the high data prices,” said Kubayi.
There’s been a public outcry over the high cost of data, with mobile networks coming under severe criticism on social media following the #DataMustFall campaign.
The movement, spearheaded by radio presenter Tbo Touch, real name Thabo Molefe, said on Thursday he had been invited by Parliament’s portfolio committee on telecommunications to address them next week on broadband costs.
Part of the #DataMustFall campaign focuses on how much data costs in other countries in comparison with South Africa.
Data prices in the country remain very high compared with other countries on the continent and in the world. While 1GB (gigabyte) of data costs R11 in India‚ R22 in Nigeria and R32 in Namibia, South Africans are paying R150.
Yesterday, South Africa’s three major mobile networks, MTN, Vodacom, and Cell C could not confirm whether they would be reducing prices before the November deadline.
But Vodacom said they were committed to price transformation. “We are working with all stakeholders to accelerate progress on top of the significant progress we have made in our pricing transformation strategy so far,” Vodacom said. “It is important to note that in 2015 alone, the average price our customers paid for data fell by 13.6 percent.”
According to a recent study, South Africans spend almost 25 percent of their salary on internet usage, well above the international telecommunication union’s guideline of 5 percent.
The parliamentary committee conducted a two-day hearing this week.
Submissions were heard from the Department of Communications, the Independent Communications Authority of South Africa (Icasa), civil society organisations, telecoms operators and the public on the cost of communicating with mobile data. The hearing was marked by probing questions and rebuttals from mobile networks.
During the hearing, MTN told Parliament it had decreased voice and data tariffs by 58 percent and 73 percent respectively over the past five years, despite an increase in costs.
But Kubayi said MTN failed to answer when asked why their data prices in South Africa were so high while their Ghana mobile data prices were comparatively low.
“They couldn’t tell us. They said they would go and check their numbers and revert back,” said Kubayi.
Vodacom was also called for an explanation on why their data “disappears”.
Vodacom executive head of innovation Jannie van Zyl told Parliament faster networks, better phones and consumers’ own habits had all led to the perception.” Data is consumed by your handset. Sometimes you use your data, sometimes your handset uses it in the background.”
Cell C’s chief executive José dos Santos said his network had been key in driving down communication costs by bringing “real competition to the market”.
“Competition to MTN and Vodacom, driven mainly by Cell C, has saved the South African consumer more than R47 billion between 2010 and 2015,” he said.
With competition among mobile operators intensifying, Icasa told MPs data prices had fallen 45 percent since 2010 and should fall further.
Icasa has said although it doesn’t yet have a specific framework for pricing, it aims “to protect consumers by setting regulations”.
IT IS more than irritating to realise that, despite the fact that South Africa was one of the first developing countries to get on to the digital communication bandwagon in the early 1990s, we are still getting scalped when it comes to the cost of data.
In the beginning, cellular technology was cute and cutting edge, and the companies emphasised the huge costs of putting in infrastructure, so we meekly accepted that call costs would be huge.
As the networks grew, and technology improved, we didn’t notice that economies of scale did not apply to us and call rates did not go down.
When we began getting data through these digital networks, we also went along with the arguments that state monopoly player Telkom was choking supply, or that the huge international “pipes” seemed to exclude Africa.
Today, competition is improving and new communications networks, including fibre, are being set up in our neighbourhoods. Highspeed international cables link Africa to the rest of the world.
We are waking up to the fact that we are being ripped off, with many allegedly less sophisticated countries in Africa paying fractions of what we do.
Access to data is taken for granted by millions as one of the tools they need in business, and by families for research, or to keep the kids happy with a wide range of entertainment.
The pain of the public paying hefty data charges goes beyond an example of rampant capitalism. It can be viewed as economic sabotage. Broadband connectivity and affordable data are, undoubtedly, drivers of economic growth. Anyone who stands in the way of that is hurting South Africa and its people.
So we welcome Parliament’s intention to get tough with providers and force them to bring down data prices. Let the internet loose and see this beloved country fly!