South Africa’s MTN drops prices on monthly data bundles by between 25% and 50%

South Africa's MTN drops prices on monthly data bundles by between 25% and 50%
FILE PHOTO: An MTN store in Cape Town, South Africa, November 10, 2015. REUTERS/Mike Hutchings/File Photo

MTN has agreed to cut the cost of its data bundles after South Africa’s competition watchdog warned in December that the telecoms operator and rival Vodacom faced prosecution if they did not do so.

A two-year inquiry into data services which concluded late last year found prices charged by the top two operators in South Africa were higher than in other African markets they operate in.

They control about 70% of its wireless broadband market.

MTN said it would reduce the cost of monthly data bundles of 1 gigabyte (GB) and below by between 25% and 50% from April 15.

This after a finding that South Africa’s mobile data prices were the highest on the continent.

The price of its 1 GB monthly data bundle will fall by 33% to 99 rand (Ksh.604) from 149 rand (Ksh.909), MTN said in a statement,.

This after the Competition Commission said the preliminary evidence suggested there was scope for price reductions of 30% to 50%.

MTN will also provide each of its 29 million customers in South Africa with 20 Megabyte (MB) of free data daily through its instant messaging platform, Ayoba.

The company will also offer 500 MB of free data access to public benefit services websites such as health and job sites every month.

Vodacom this month agreed to reduce data prices by as much as 40% and announced that the company would cut the price of its 1 Gigabyte of 30-day data to 99 rand from 149 rand.

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