TRIBUNAL APPROVES CONSENT AGREEMENT BETWEEN COMMISSION AND MTN ON REDUCTION OF DATA PRICES
The Tribunal has approved, as an order, a consent agreement concluded between the Competition Commission (the Commission) and Mobile Telephone Networks (Pty) Ltd (MTN), whereby data prices will be reduced.
This follows the Commission’s Data Services Market Inquiry (DSMI), its resulting findings and recommendations as well as discussions between the Commission and MTN. MTN makes no admission of liability for any conduct prohibited under the Competition Act.
In terms of the consent agreement, MTN has undertaken the following, among others:
Retail price reductions
- to reduce the price of 30-day prepaid bundles across channels;
- to implement the retail price reductions across all its retail channels; and
- to communicate these reductions to all channel partners and to apply these reductions across all MTN channels.
Daily lifeline package
- to offer all its customers a daily free capped data bundle; and
- MTN records that it implemented the daily lifeline package in respect of the Ayoba chat, media and channels functionalities on 12 March 2020, and is to implement the Ayoba browser functionality on 1 June 2020.
Zero-Rated Access
- to offer all its customers capped Zero-Rated Access to certain PBO and other websites, subject to a maximum of 500 websites focusing on education, healthcare and job recruitment via MTN's own website, which shall be subject to terms and conditions.
Transparency
- to enable all its customers, at no charge, to manage their data usage through an MTN USSD and on MTN’s website.
Background
The Commission’s DSMI resulted from persistent concerns about the apparent high level of data prices in South Africa and the importance of data affordability for consumers and the economy in general.
The Commission published its final report in December 2019, finding that data prices in the country were high. It noted several recommendations relevant to the consent agreement which it subsequently concluded with MTN.
These included recommendations in relation to tariff levels (especially prepaid monthly bundles), data bundles, price discrimination strategies that adversely affect lower income consumers, a lifeline package for all prepaid subscribers, and zero-rating of certain content among other recommendations.
Following the publication of the final report, the Commission and MTN engaged in discussions to reach an agreement on mutually acceptable solutions aimed at addressing the concerns raised in the final report.
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