Parliament acts in the interests of SA public regarding excessive mobile data costs

26 September 2016

The Office of the ANC Chief Whip commends the parliamentary portfolio committee on telecommunications and postal services for taking the fight to the network providers on behalf of South African consumers against the excessive and unjustifiable mobile data prices. The committee last week held public hearings and considered submissions from various stakeholders, including major mobile operators and the public, as part of a parliamentary intervention to ensure reasonable and affordable cost of data in South Africa. South Africa’s mobile operators are currently amongst the most expensive in the world, and the runaway data cost increases has seen an upsurge in complaints from the public.

The unadulterated greed of these mobile operators, who are unashamedly abusing their market dominance by sucking consumers dry with unjustifiably high prices for calls and data, cannot be allowed to continue. It is clear that following Parliament’s successful intervention on mobile termination rates (MTRs) in 2009, which significantly brought down their extortionate inter-network fees, the networks creatively shifted the costs to data. Further, the network operators tried unsuccessfully to lobby Parliament earlier this year to regulate over-the-top (OTT) services to further maximize their profits and eliminate any competition in the sector. It goes without saying that OTT regulation would have disadvantaged the consumers and further heightened the cost of communication. The telecommunications industry is the central nervous system of any economy. Excessive cost of communication therefore negatively affects economic growth as it makes it costly to conduct business.

The report of the parliamentary portfolio committee on telecommunications and postal services on these hearings must be debated in the House to afford Parliament an opportunity to formally express itself on this crucial matter that affects millions of our people. ICASA, the regulatory body that accounts to Parliament, must act swiftly to ensure that affordable cost of data in South Africa is realised.

Parliament has ensured that mobile termination rates are drastically decreased; the same will be done with the data costs to save South Africans from greedy operators.

Issued by Moloto Mothapo on behalf of the Office of the ANC Chief Whip, 26 September 2016