#DataMustFall: MTN to slash out-of-bundle rates

Johannesburg - Mobile network provider MTN will slash data rates down to 29 cents per megabyte on its lowest tariff.  

MTN SA CEO Godfrey Motsa said on Thursday that the network would be cutting data costs to 29c for its "Accidental users" who typically use less than 5MB per month, and those who use more can now expect to pay 60c out-of-bundle. 

“We have been investing heavily in our network infrastructure, because customers are the basis of our network," Motsa said. 

During the same announcement Jacqui O'Sullivan, head of corporate affairs executive at MTN SA, said that, from Friday, customers would be able to purchase 1GB data bundles through the network’s cellphone app for R50 which will be valid for a week.  

Motsa added that MTN wants to drop data rates even further, but can only do this with more spectrum allocation. 

“We would like to see out-of-bundle data drop even further for our customers and every time we have the opportunity to engage with government we ask for more spectrum to be released, because we understand the positive impact that more spectrum allocation has on the SA GDP,” Motsa said. 

During his mini budget, Finance Minister Malusi Gigaba said the Council for Scientific and Industrial Research had completed a study on spectrum availability and open access on behalf of the Department of Telecommunications and Postal Services.

The delay in allocating telecommunications spectrum constrains growth across the economy.

Lack of radio frequency limits the ability of businesses to deploy new technologies, and contributes to the high cost of broadband.

In comparison, and according to independent research, SA fares reasonably well compared to other African countries, which pay a higher price per gigabyte.

It was previously announced that the Competition Commission launched a market inquiry to investigate data prices.

* Sign up to Fin24's top news in your inbox: SUBSCRIBE TO FIN24 NEWSLETTER

We live in a world where facts and fiction get blurred
In times of uncertainty you need journalism you can trust. For 14 free days, you can have access to a world of in-depth analyses, investigative journalism, top opinions and a range of features. Journalism strengthens democracy. Invest in the future today. Thereafter you will be billed R75 per month. You can cancel anytime and if you cancel within 14 days you won't be billed. 
Subscribe to News24
Rand - Dollar
16.97
+1.2%
Rand - Pound
20.38
+0.7%
Rand - Euro
17.61
+0.8%
Rand - Aus dollar
11.44
-0.1%
Rand - Yen
0.12
+0.5%
Gold
1,755.20
+0.8%
Silver
21.33
+1.9%
Palladium
1,863.70
+0.8%
Platinum
1,004.37
+1.1%
Brent Crude
83.19
-0.5%
Top 40
67,071
+0.1%
All Share
73,432
+0.1%
Resource 10
71,706
+1.3%
Industrial 25
88,362
-0.0%
Financial 15
16,187
-1.2%
All JSE data delayed by at least 15 minutes Iress logo
Company Snapshot
Editorial feedback and complaints

Contact the public editor with feedback for our journalists, complaints, queries or suggestions about articles on News24.

LEARN MORE
Government tenders

Find public sector tender opportunities in South Africa here.

Government tenders
This portal provides access to information on all tenders made by all public sector organisations in all spheres of government.
Browse tenders