Making Cents

  • Samuel Mungadze, Editor of New African Gazette and ICT Journal a
    tech online mag, and former tech writer at Business Day and IT
    News Africa.
    MTN, Vodacom charging up to 2
    639% more for out-of- bundle data
  • report
    Amid reports of South Africa’s top two networks charging up to 2
    639% more for out-of- bundle data, Vodacom has said it is normal
    business practice to offer discounts to customers that make longer
    term commitments. 
    Despite a push by government and the Independent
    Communications Authority Of South Africa (Icasa), out-of- bundle
    data rates are much more expensive than in-bundle.
    MyBroadband recently revealed that data rates on both the
    Vodacom and MTN networks were reported to be exponentially
    higher when users ran out of data bundles. 
    It was reported that while on contract, a Vodacom 20GB data bundle
    cost R329, which worked out to R0.02 per MB, but out-of- bundle the
    rate per MB was R0.44, 2 630% higher than an in-bundle rate. 
    Similarly, MTN’s 25GB prepaid bundle costs R1 250, equating to
    R0.05 per MB and out-of- bundle cost R0.99 per MB, 1 928% more
    expensive than in-bundle.
    The report came amid a promise made across all networks to extend
    the validity of data bundles and a decrease in the cost of data
    overall. 

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Last month Fin24 reported that Minister of Economic Development
Ebrahim Patel said that government would prioritise bringing down
data costs as part of developing an economy in line with the fourth
industrial revolution.
Patel spoke on efforts made to develop the economy to be more
inclusive during the debate in Parliament following the State of the
Nation Address.
Patel further stated that government would focus on bringing down
data costs through the competition market inquiry into data services
and expand the infrastructure for data by finalising the release of a
new telecommunications spectrum.
Last year Icasa stepped into the ongoing row between consumers
and network providers over the high cost of data by releasi