#DataMustFall: Vodacom slashes out-of-bundle data costs

Johannesburg - Network provider Vodacom [JSE:VOD] has announced that it will “significantly reduce” out-of-bundle prices for all customers from mid-October. 

“For pre-paid and customers on top-up packages, the out-of-bundle rate will drop by as much as 50% once the new 99c per megabyte tariff comes into effect on October 15.

"The out-of-bundle rate for post-paid customers was reduced from R1 per megabyte to 89c on October 1,”  the company said in a statement. 

Group CEO of Vodacom Shameel Joosub said the company needs to expand 4G coverage and keep pace with an increase of more than 45% in sustained data traffic demand. 

“Both of these come at a cost, and we have invested some R32.7bn over the last four years. However, lack of access to spectrum is hampering our ability to drive down infrastructure costs and in turn, enable us to pass savings to the consumer,” said Joosub. 

Vodacom previously told Fin24 that it is committed to the process of drafting new regulations, after regulator Icasa said it would hold an inquiry in an attempt to reduce the country's high data costs.

Vodacom joins Cell C, which recently responded to Icasa’s regulation of data by dropping out-of-bundle rates and extending bundle expiry.

Cell C reduced its out-of-bundle data rate for prepaid customers on its lowest tariff plan to 15 cents per MB, effective October 1 2017. 

In August it was announced that Icasa wanted to amend the End-user and Subscriber Service Charter Regulations by introducing “out-of-bundle billing practices” and other “expiry of data practices”.

Previously, the regulator announced it would hold an inquiry in an attempt to reduce high data costs.

The probe will be conducted over four phases and will be completed in March 2018. 


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