SA Competition Commission Threatens to Prosecute Telecom Provider Over Expensive Data

The South Africa Competition Commission has threatened to prosecute telecom providers in the country. The threat was birthed from their findings that telecom companies are extorting users and charging exorbitant data prices.

The Competition Commission is a constituted body created by Act No.89 of the 1998 constitution. The body is charged with the duty to investigate, control and evaluate restrictive business practices in the country. It also evaluates the abuse of domina nt positions and mergers by companies.

It is in the performance of this duty that the commission embarked on a research that evaluates the price charged for data in South Africa.

The findings of the research noted that the price of data is expensive and higher than what is obtainable in the global market and that the increase was birthed due to lack of competition in the South Africa telecom market.

Thus, in its capacity as a commission, the group ordered the telecommunication companies in the country to review their data price by half or face being charged to court. The revision also comes with a 2-month Ultimatum.

The South Africa Minister of Trade and Industry, Ebrahim Patel has applauded the report. He noted that accessible data service is of necessity to every developing country.

Therefore, he would work co-jointly with the communication ministry to provide affordable data service in the country.

Meanwhile, in a recent development, telecom companies in South Africa have revealed plans to challenge the report in court.