After a massive selloff on Monday, shares of South Africa’s biggest listed telecommunications companies continued to trade lower into Tuesday.
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Vodacom and MTN must drop mobile data prices significantly, failing which the Competition Commission will consider prosecuting the two companies.
The Competition Commission on Monday unveiled surprisingly broad-ranging, tough and radical interventions in the data services market, including a proposal that mobile operators be forced to give South Africans a free allocation of daily data.
Vodacom and MTN said in reaction to interventions by the Competition Commission that a failure by government to allocate spectrum timeously is one of the reasons data prices are higher than they would otherwise be.
Cell C’s creditors aren’t giving up on a takeover offer from rival Telkom, which South Africa’s third largest mobile network operator rejected last week.
Shares of Vodacom Group and MTN Group slumped after South Africa’s two biggest mobile phone companies were ordered to step up efforts to lower data prices within the next two months or face prosecution.
Communications regulator Icasa has said there is insufficient competition in aspects of the delivery of mobile broadband in South Africa.
Teraco CEO Lex van Wyk will step down as CEO of the giant data centre operator at the end of the year, the company said on Monday.
Ahead of publication of the Competition Commission’s final report flowing from its inquiry in the data services market, expected later on Monday, TechCentral republishes this column from editor Duncan McLeod.
Telkom has withdrawn a cautionary notice to shareholders about its proposed acquisition of Cell C after the board of the mobile operator spurned its approaches.