Patel: Data price reduction will enhance economic growth
Trade and Industry Minister Ebrahim Patel says the agreement between Vodacom and the Competition Commission will provide a boost to the country’s struggling economy.
South Africa's competition regulator announced a deal with Vodacom on Tuesday to cut data costs by at least 30 per cent.
This after it accusing the telecommunications giant of overcharging for internet connectivity.
The commission said Vodacom had agreed to a "substantial reduction of monthly data bundles".
"Effective from 1 April 2020, the price will come down by over 30 per cent across all channels," the commission announced.
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Patel says when prices are lower they promote a great level of competitiveness and contribute to economic growth.
"And promote access for more South Africans to the digital economy and digital citizenship.
"Economies have become more digitised. We no longer can speak of a digital economy as if it's one more sector. Its the entire economy that has embraced the power of digitisation to improve goods, services, production, distribution and even consumption in society. So when prices are lower they help promote a greater level of competitiveness and they can enhance economic outcomes," Patel adds.
He believes the agreement will also enhance democracy.
"Today, so much of the national conversation is conducted through the electronic beats. So many consumers now derive our information - the facts and opinions to which we base our choices - on the information we obtain through digital means.
"This helps to increase the foundation of our democracy which as an informed citizen. So the agreement itself has provisions that will provide a very basic package for access for consumers."