South Africa: MTN, Vodacom Slammed With ‘Discriminatory Pricing’ Charges


Cell C, South Africa’s 3rd largest telecommunication firm, has lodged a complaint with the country’s anti-competition authorities over what it calls “discriminatory pricing” being perpetrated by the MTN and Vodacom.

MTN and Vodacom, which both control a significant market share in South Africa, with a combined value of $55.9 billion, offers discounts on calls for subscribers on the same network, but slams premium rates when calls are made to other networks.

Given their market share presence and large subscriber base, customers currently on their network are forced to reduce calls to other networks, escalating the cost smaller Telco companies incur in utilizing their networks.

“This amounts to discriminatory pricing and is without a doubt anti-competitive when adopted by dominant operators,” Cell C CEO Alan Knott-Craig said in a statement.

The potential measures so far brewing up at the Independent Communications Authority of South Africa, includes a 75 percent slash of Termination Rates from 40 cents (South African) to 10 cents, however it hasn’t been turned into law yet.