Data prices are coming down, but they could go down faster if spectrum was made available.
That’s according to Vodacom Chief Executive Officer, Shameel Joosub.
He told the market inquiry into data services underway in Pretoria that new spectrum has not been issued in 14 years.
Joosub was the first of the mobile operators to make presentations to the inquiry on Thursday morning.
He says availability of spectrum affects network coverage and capacity that can be delivered in a cost effective way.
He says the policy uncertainty in the sector could also have a dampening effect on investments when investments are key in the sector.
He told the inquiry that the prices of data came down by 21% in the past five years.
He says what drives up costs is also the rand dollar exchange rate and the prices of smart phones that are factored in with contract packages.
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Meanwhile, South African telecommunication company’s MTN CEO, Godfrey Motsa has refuted claims that high data prices drive up the cost of living for South Africans.
He says data by Statistics SA shows that South Africans spend more on alcohol and cigarettes than they do on communications.
He says MTN rates reduced by 25% in just the first half of the year. Motsa also says the free access to Twitter that was offered to customers for the past four years, shows MTN’s support for lower internet and communication service costs.
Motsa is appearing before the Competition Commission Data Services Market Inquiry underway in the country’s capital, Pretoria.
