Connecting Africa is part of the Informa Tech Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them. Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 3099067.

Digital Inclusion

Competition Tribunal confirms Vodacom, CompCom data settlement as an order

JOHANNESBURG, South Africa -- The South African Competition Commission (CompCom) welcomes the decision of the Competition Tribunal to confirm as an order the consent agreement with Vodacom on the reduction of data prices.

The agreement follows the publication of the final report of the Data Services Market Inquiry in December last year. The Commission instituted the Inquiry to understand and investigate factors or features of the market that led to high prices for data services.

The consent agreement is entered into in full and final settlement of the concerns identified in the final report of the Data Services Market Inquiry in so far as these relate to Vodacom.

In terms of the agreement, Vodacom agreed to a range of issues on the following, among others:

1. Retail Pricing Reduction

Vodacom agreed to a multi-year substantial reduction of monthly data bundles across the board. Effective from April 1, 2020 prices of 30-day prepaid bundles will drop by over 30% across all channels. For example, the key 1GB monthly data bundle will drop from R149 ($8.50) per 1GB to no more than to R99 ($5.65) -including VAT. This represents a 34% price decrease. Customers that buy the lowest volumes of data, which are typically the poorest customers, would see the greatest benefit of these price decreases.

2. Lifeline Data and Zero Rating of Data

From April 1, 2020 Vodacom shall, except for the zero-rated Government websites, make available all of its current zero-rated services on one platform, with increased focus on consumers in poorer communities through "ConnectU". ConnectU will address seven key areas:

  • Education – Vodacom shall expand their current zero rating offering to all public universities, Technical and Vocational Educational Training (TVET) colleges as well as all public schools across the country.

  • Internet Search – Vodacom shall provide a full zero-rated Internet search function powered by Wikipedia, which will enable customers to search for any topic online.

  • Jobs – Vodacom shall allow customers to view and apply for job opportunities as advertised on seven zero-rated South African job portals.

  • Social and essential Internet access – Vodacom has undertaken to provide customers with free access to Facebook Flex. Consumers can also access local and international news headlines, trends, as well as weather free of charge.

  • Health and Wellness – Vodacom shall expand its health information portal to provide holistic health information across all life-stages in the third quarter of 2020.

  • Safety & Security – Vodacom shall assist with protecting families through measures to shield children from exposure to illegal and inappropriate adult content.

  • Pro-Poor Personalized discounting and Free Communication – Vodacom shall extend current zero-rating to essential state and emergency specified sites. Citizens will able to access emergency services and allow citizens to access crucial government information and services.

    Further, Vodacom shall extend personalized discounts to prepaid customers in all suburbs and villages where most of the population have income levels below the upper bound food poverty line.

    3. Transparency

    Effective from April 1, 2020 Vodacom shall improve customer awareness of the personalized price promotions and guaranteeing that there will always be better value on the personalised price promotion platforms when compared to headline offers.

    The Competition Commission of South Africa

  • Innovation hub

    Story

    Omdia View: February 2024

    Highlights in February 2024 in the Middle East and Africa included 5G launches in Senegal and 5G trials in Egypt as well as Kenya's first 5G MVNO. Airtel also launched a new wholesale connectivity business while MTN and Huawei are planning a joint Innovation Technology Lab in South Africa – that and more in this month's Omdia View.

    Story

    Key adoption areas for machine learning in Africa

    ICT analyst Francis Hook identifies some of the key sectors that could be positively impacted by machine learning, including education, government services, healthcare and climate tech.

    More Innovation hub

    Latest video

    More videos

    Upcoming events

    Africa Tech Festival 2024
    November 11-14, 2024
    Cape Town, South Africa
    More Upcoming events

    Sponsored video

    More videos

    Industry announcements

    More Industry announcements

    Africa Tech Perspectives

    Story

    Uber's Marjorie Saint-Lot on inclusion and sustainability in Africa

    Uber's Country Manager for Ghana and Cote d'Ivoire, Marjorie Saint-Lot, shares how the ride-hailing company is approaching public-private partnerships, environmentally friendly initiatives and gender inclusion in Africa.

    Story

    The 100 most influential African leaders in 2023

    A new report from Africa Tech Festival and Connecting Africa puts a spotlight on the top 100 African leaders in the telecoms and technology sector in 2023.

    Story

    Deep dive into East Africa's tech startup ecosystem

    New survey reveals a lack of access to investors, reliance on international VCs and global recession trends as the biggest barriers for East African tech startups to access funds.

    More Africa Tech perspectives

    Partner perspectives

    All Partner Perspectives

    Guest Perspectives

    Story

    Omdia View: January 2024

    By Omdia Analysts

    Highlights in January 2024 in the Middle East and Africa included a $200 million fintech deal between MTN and Mastercard as well as 5G network trials by Telecom Egypt – that and more in this month's Omdia View.

    Story

    Omdia View: September 2023

    By Omdia Analysts

    Highlights in September 2023 in the Middle East and Africa included more 5G spectrum licenses, vendor and operator strategies, and partnerships – that and more in this month's Omdia View.

    More Guest Perspectives

    Like us on Facebook

    Newsletter Sign Up


    Sign Up
    Tag id test-002