JOHANNESBURG - The competition commission on Friday said the data market inquiry
has been officially set in motion with the publishing of terms of reference
(ToR) in the Government Gazette.
The Commission is set to call for submissions after 20
business days. Sipho Ngwema, Competition Commission spokesperson said the
commission initiated the inquiry because it believes there are features in this
market that prevent, distort or restrict competition within the sector.
“Through the inquiry, the Commission aims to determine what
may cause or lead to high data prices with a view to ultimately making
recommendations that will result in lower prices for data services.”
Ngwema said the inquiry has been initiated in response to a
request by Ebrahim Patel, Economic Development Minister, who also has expressed
concerns over high data costs and highlighted the importance of data
affordability.
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“Our main objectives of the inquiry is to benchmark South
African data services pricing against those of other countries; and establish
whether data supply quality and coverage is adequate by international standards
and the country’s developmental needs.
Ngwema said as per the ToR, the inquiry will assess among
others the investment in infrastructure by operators and access to allocation
of spectrum as they relate to data services price:
The inquiry is due for completion by 31 August 2018 and the
Commission will then release its findings and recommendations.