Subscribe
  • Home
  • /
  • Internet
  • /
  • ISPA faults ICASA for slow action on data prices

ISPA faults ICASA for slow action on data prices

Staff Writer
By Staff Writer, ITWeb
Johannesburg, 14 Mar 2017
ISPA says South Africans use more data and fewer voice minutes.
ISPA says South Africans use more data and fewer voice minutes.

The Internet Service Providers' Association (ISPA) has issued a statement that says the Independent Communications Authority of South Africa (ICASA) has done nothing in the year since a directive was issued to look at mobile data rates.

The association says the authority has preferred to focus on the "easy win" of voice rates over mobile data, when fewer South Africans are making calls.

"Effective competition in the mobile data services used by consumers is the key to making broadband more affordable for all South Africans. There is, however, an unfortunate lack of urgency on the part of the communications regulator to confront the mobile network operators on this issue," says ISPA.

Siyabonga Cwele, minister of telecommunications and postal services, issued an urgent policy directive to ICASA on 3 March 2016, requiring it to prioritise an inquiry that would finalise regulations to ensure effective competition in SA's broadband market.

ISPA says ICASA has instead focused on trying to bring down voice data costs, as it has successfully done this before.

"Previous use by ICASA of Chapter 10 of the Electronic Communications Act to bring down voice costs was very successful and has made a real difference to the cost to communicate for South Africans over the last six years.

"However, a declining share of the consumer's monthly mobile spend goes to voice calls. At current growth rates, mobile data revenue will soon surpass voice revenue. What is urgently needed - and what consumers are clamouring for - is cheaper mobile data. There is very little progress on this front," ISPA says.

"While ICASA has appointed a service provider to undertake a study of broadband markets, nothing has been communicated to industry or the public more than a year after the minister's directive.

"By focusing on voice call termination rates, ICASA is taking the easy option of doing what it has done before, while avoiding the far more relevant and pressing issue of the cost of the mobile data used by tens of millions of South Africans," says ISPA.

ICASA was contacted by ITWeb for comment but did not respond by time of publication.

Share