- Vodacom has reduced the price of its 1GB 30-day data bundle to R85.
- In December 2019, the same bundle used to cost R149.
- The price reductions are a part of Vodacom's agreement with the Competition Commission after the Data Services Market Inquiry, which found that data prices were excessive.
Data prices are falling further as Vodacom has slashed the price of its 1GB 30-day bundle by another R15. The mobile operator is now selling the bundle for R85 - reducing its cost by 43% compared to the R149 it was selling it for just two years ago.
Mobile operators, including Vodacom, MTN, and Cell C, started reducing their mobile data prices in 2020 after the Competition Commission's damning final report on the data services market inquiry in 2019.
The report found that a duopoly of the two leading mobile operators – MTN and Vodacom – allowed them to charge excessive prices for data. They were compelled to independently reach an agreement with the commission or face prosecution by the Competition Tribunal.
When Vodacom announced its initial price reduction in March 2020, its 1GB 30-day bundle fell from R149 to R99. But the mobile operator promised to have another price reduction in April this year.
It has now delivered on that promise by cutting the price of that bundle further to R85.
"The commission wishes to note that these price reductions have been effected in compliance with the terms of the consent agreement reached with Vodacom following the recommendations of the Data Services Market Inquiry (DSMI) in December 2019,"the Competition Commission said in a statement on Wednesday.
It added that Vodacom had reduced certain other price points as per the agreement. For instance, the R29 price point now has 200MB of data, up from 150MB, and up from 100MB in 2019, representing a 50% decrease in the effective price of that bundle.
"The commission estimates that the first round of price reductions agreed between the commission, and Vodacom and MTN respectively resulted in savings for consumers of over R3bn in the last year," the commission said.