COMPETITION
Why analysts want a probe into SA's cellphone industry
The cellphone services industry is dominated by MTN and Vodacom and there’s been growing speculation of possible collusion in pricing practices
Analysts have welcomed the Competition Commission’s call for a wider investigation into competition in the cellphone data and voice market, saying this could further stimulate competition and level the playing field for small operators. The commission’s comments come after it decided not to proceed with a complaint, filed by Cell C against MTN and Vodacom, that the price differentials applied by Vodacom and MTN for calls made to the same network compared with those to different networks prevented competition. The cellphone services industry is dominated by MTN and Vodacom and there has been speculation of possible collusion in pricing practices. "As the companies are now competing for subscribers based on the services they offer, there have been instances where strategies adopted have been similar to price wars, which have negative knock-on effects for smaller, more agile and innovative players in the market, thereby limiting their growth trajectories," said Anesu Charamba, programm...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.