Are we paying too much for mobile and internet services?
Mobile data, fibre and voice costs affect almost every household that relies on connectivity each day. A new ICASA process is examining whether current pricing reflects what South Africans can reasonably afford.
Mobile data, fibre and voice services have become part of daily life, which makes the price of staying connected difficult to ignore. South Africa’s communications regulator is examining affordability again, with a fresh process focused on what people pay and whether intervention may be needed.
ICASA published new affordability documents on September 30 after withdrawing its September 4 notice. The regulator’s affordability process includes a new notice and pricing questionnaire, while its stated purpose is to examine the cost of telecommunications services and possible regulatory or market interventions.
The regulator has not concluded that South Africans are paying too much. Its work starts from concerns about the affordability of voice and broadband services, especially for low-income households, rural communities, young people and informal-sector workers. ICASA also plans to assess affordability from the consumer side, which gives the process a wider scope than comparing advertised package prices alone.
A cheap-looking bundle does not automatically settle the affordability issue. The regulator is looking at what telecommunications services cost in the context of people who need connectivity for work, education, communication and other parts of daily life. Its findings still need to establish where the pressure lies and whether any response is justified.
The distinction between price and affordability is important. A package can cost less than another package while still taking a meaningful portion of somebody’s available income. Coverage can also determine which services a household can choose, especially where fibre or another fixed connection is unavailable.
People who depend heavily on mobile internet already have reasons to watch every gigabyte. Making mobile data last longer can reduce how quickly a bundle disappears, especially when background data, downloads and streaming consume more than expected.
Liz Thorne
ICASA’s process is also looking beyond consumers. Service providers are expected to supply pricing information, while the regulator can use that material alongside consumer research before reaching findings. Any regulatory response would come after that work, not before it.
The regulator has opened the door to a closer look at what connectivity costs South Africans. A lower advertised price does not answer whether a service is affordable for the household paying for it. The evidence collected through the process should show where that gap is widest.
A monthly mobile or internet bill may look small beside rent, food or transport, but connectivity has become part of how people study, work, bank and communicate. ICASA’s review gives affordability a formal place under scrutiny without assuming the outcome in advance. What comes next could help show whether South Africans are getting fair value from the services that connect daily life.
Comments ()