Data pricing trends in South Africa Presentation by Research ICT Africa, 2017 Prepaid prices Vs Postpaid • Mobile broadband services remain very expensive for low-income users in South Africa (55% of South African population not using the Internet) • About 15% non-Internet users stated that the Internet is too expensive, while 36% have no access to smartphones or computers
• Prepaid services are far more expensive than contract or postpaid, despite prepaid customers being less costly and risky Pricing competition in the data market • Prices of 1GB monthly prepaid data bundle have remained fairly constant between R149 and R160 over the last nine quarters, except for Telkom (R99)
• According to Research ICT Africa (R IA)’s 1GB data pricing information, there has been minimal price competition in the prepaid mobile broadband market in the last two years. • The Telkom strategy to undercut other operators did not initiate any response from other three operators.
South Af rica operators’ 1GB price using RAMP 90 45 0 2017 Q2 2014 Q2 2014 Q3 2014 Q4 2015 Q1 2015 Q2 2015 Q3 2015 Q4 2016 Q1 2016 Q2 2016 Q3 2016 Q4 2017 Q1
A comparison of Africa’s cheapest prepaid mobile data prices • RIA’s Africa Mobile Price (RAMP) Index shows that the lowest price for 1GB of mobile data puts South Africa 27th out of 49 African countries for Q2 2017. • In Egypt, the cheapest 1GB of prepaid data is sold at USD1.41 while in South Africa is offered by Telkom Mobile at USD7.50 Table 1: Cheapest 1GB prepaid data price in six large African markets Table 6: Cheapest 1GB prepaid data prices in six Q3 2016 Q4 2016 Q1 2017 Q2 2017 large African markets (USD) 1,7 Q1 2016 1,4 Q3 2016 1,2 2,8 Q4 2016 Q2 2016 Q1 201 Egypt 2,4 3,0 2,3 2,3 Tanzania 2,5 2,5 2,3 2,3 Ghana 3,2 3,2 3,2 3,1 Nigeria 5,0 5,0 4,9 4,7 Kenya 7,0 7,1 7,5 7,6 South Africa
A comparison of Africa’s cheapest prepaid mobile data prices • South Africa came last out of six of some of the most dynamic telecommunication markets in Africa in the Q2 2017 • The cost of 1GB in SA is three times the cost of the same data amount in Ghana and Tanzania, and more than twice the cost of 1GB in Nigeria
Comparison of the cost of 1GB across SADC countries using RIA 1GB price basket • Among SADC countries, SA is ranked sixth behind Mozambique, Madagascar, Mauritius, Malawi and Namibia • The cheapest 1GB data in South Africa is three times the cost of the cheapest 1GB available in Mozambique. Mozambique Madascar Mauritius Malawi South Africa Lesotho Namibia Zambia DRC Angola Zimbabwe
2, 27 Swaziland 4,47 0 5,25 10 20 6,67 7,49 7,56 10,44 12 ,62 13 18,28 30 34,43 30 40
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