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

    SA startup Sendoff is digitizing funerals

    South African startup Sendoff is a full-service funeral app that is digitizing the way funerals are organized.

    Story

    SA's Homemation wants smart homes to be seamless

    Through its Control4 operating system, South Africa's Homemation highlights that operating smart homes should be a seamless experience.

    More Innovation hub

    Partner perspectives

    5G is lighting up the future of North Africa
    By Chris Meng, VP of Huawei Northern Africa Carrier Business Department

    The moving target that is telecoms fraud
    By Clémentine Fournier, Regional VP Sales, Africa, BICS

    How mobile operators in Africa can address signalling threats and secure the network
    By Katia Gonzalez, Head of Fraud and Security at BICS

    All Partner Perspectives

    Latest video

    More videos

    Guest Perspectives

    Story

    Omdia View: June 2022

    By Omdia Analysts

    5G was the major news trend across Africa in June, as Orange became the first operator to launch 5G in Réunion and operators in Senegal accelerated their 5G plans despite spectrum delays.

    Story

    Omdia View: May 2022

    By Omdia Analysts

    SpaceX-owned Starlink's plans to launch a satellite broadband service in Africa was a major highlight in May 2022, says Omdia's analysts.

    More Guest Perspectives

    Upcoming events

    Africa Tech Festival
    November 7-11, 2022
    CTICC, Cape Town
    More Upcoming events

    Flash poll

    All polls

    Archived webinars

    Africa Green ICT: Lighting Up a Sustainable Continent

    The ICT industry is the leading industry in the commitment to carbon neutrality, whose focus has shifted from setting ambitious targets to taking initiatives. The push for zero-carbon and for green energy development, it isn't just about CSR – it's also good for sustainable business.

    The path to sustainable development requires green energy. Governments are looking at potential policy approaches to make green energy more widely available and affordable. Without sustainable energy, there will be no digital transformation and no chance of making Africa more economically competitive in the post-pandemic era.

    Africa Green ICT Webinar 2022 will bring together ICT industry leaders and senior industrial analysts to provide insight, best practices and key learnings on how to achieve zero-carbon targets and practice green development in Africa.

    More Webinars

    Sponsored video

    More videos

    AfricaCom perspectives

    Story

    Digital inclusion as a catalyst for economic empowerment: Mastercard's Imelda Ngunzu

    Mastercard's Imelda Ngunzu talks to Connecting Africa about how digital payment solutions and mobile money are transforming the lives of small business owners, women and marginalized groups in East Africa.

    Story

    Accelerating women in STEM: In conversation with GirlCode's Tinyiko Simbine

    GirlCode co-founder and CFO Tinyiko Simbine talks about why it's important to help girls and young women excel in science, technology, engineering and mathematics (STEM) fields.

    Story

    How Poa Internet is unlocking meaningful connectivity in East Africa

    Poa Internet's CEO Andy Halsall shares his views on what it takes to develop last-mile connectivity and get Africans online in a meaningful way.

    More AfricaCom perspectives

    Like us on Facebook

    Newsletter Sign Up


    Sign Up