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Data falls: Vodacom to cut data price by 30% as part of social contract

Vodacom data price
The Competition Commission has ordered the telecom giant to revise pricing on internet connectivity in South Africa

Vodacom plans to cut data price by 30 percent, media reports said. Its decision to slash data prices might result in additional savings of  R2.7 billion for customers. In addition, Vodacom will provide free internet access to the poor on the back of the Competition Commission’s order  to stabilise the pricing.

Under the terms of the agreement, Vodacom will reduce data price across all its monthly bundles. The decision is aimed at driving financial inclusion and addressing social problems such as education and unemployment. 

The telecom giant will slash prices by up to 40 percent on its monthly bundles. The price of 1GB of data valid for 30 days will be reduced by 34 percent from R149 to R99 on all channels. It is reported that Vodacom subscribers will not be required to use their internet bundles to access university portals, Wikipedia select government eservice portals and departmental websites such as home affairs and school enrolment platforms. Those looking for jobs will have free access to seven job portals as well. 

Last December, the Competition Commission urged both Vodacom and MTN to reduce data price within two months or face prosecution, media reports said. The commission’s investigation noted that both telecom giants overcharged for data in South Africa compared to their offerings in other markets. 

Vodacom Group CEO Shameel Joosub, told the media, “The agreement struck with the Commission provides us with an opportunity to enter into a social contract with the regulators, our customers and the people of South Africa to bring down the cost to communicate and promote digital inclusion.” 

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