R2K presents to Parliamentary hearings on the cost of communication
Parliament is currently holding public hearing on the cost of communications around the country and Right2know Campaign activists are participating in the hearings in the Eastern Cape on Tuesday and KZN today. The profiteering of cell phone companies represents a major barrier to advance the right to communicate that the high level of cell phone access in South Africa offer.
We have noted recent media reports that the dominant operators Vodacom and MTN claim that they continue to bring down the cost of data and voice services. The Right2Know campaign welcomes these signs that the operators recognise that South Africans pay exorbitant charges to access the mobile network. However the reality remains that accurate calculations cannot be made regarding the actual cost of airtime and other services because operators keep vital information secret. R2K argues that there is a greater need for transparency from operators on both their pricing structures as well as their real costs and profits.
It is appears that the dominant operators are referring to decreases in costs over the last three years. These decreases are a result of ICASA regulation of the termination rate and not as a result of the good will of the operators.
In addition to these regulated cost reductions, the dominant operators also make much of the current spate of ‘specials’ offered by networks. These ‘specials’ have a limited life spans and further complicate the choices of the public who already battle to compare the offerings of different providers.
Further, the current claimed reductions are driven by an industry price war. In the history of capitalism price wars are often wars of attrition that lead to the consolidation of monopolies in an industry (at which point prices begin to rise again). Already both Cell C and Telkom Mobile are suggesting that the SA market is too mature and not big enough for four operators – there are talks about talks about mergers.
The Right2Know Campaign reiterates our call for greater regulation to limit profiteering and advance the right to communicate for all. We welcome the current Parliamentary hearings, the recently launched ICASA Cost of Communication Programme, and the Minister of Communications’ ICT Policy Review. These three processes enable South Africans to have a dialogue about the kind of communications systems that can best serve our democracy and our development.
Download the R2K submission here .
