Call for probe into cellphone market
Competition Commission to talk to Icasa about intervention after Cell C’s anticompetitive appeal dismissed
The Competition Commission has called for a wider investigation into the state of competition in the mobile phone market. This comes after its decision to dismiss a complaint by Cell C against Vodacom and MTN for anticompetitive conduct related to on-net calls (calls between users of the same network) because of lack of evidence. In its October 2013 complaint, Cell C alleged that Vodacom and MTN engaged in pricing strategies that made it cheaper to make on-net calls compared with calls between people on different networks. Cell C said the price differentials applied by Vodacom and MTN prevented competition. It accused the companies of excessive pricing, inducement and margin squeeze. MTN and Vodacom control more than 70% of the market. Cell C has struggled for more than a decade to gain traction. There have been continuing calls for the regulator to look into the cost of communication because tariffs in SA, especially for data, are higher than in other emerging markets.While the com...
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