Vodacom (VOD) – Dominant until proven innocent

The Competition Commission’s (Compcom) Inquiry into data services and ICASA’s Discussion Document on its Inquiry into Mobile Broadband heightens our concern of an impending intervention in the mobile data market. Both assessments appear to be thorough and reasonably scientific and highlight several aspects of the mobile market which tilt the market dynamics in favour of the incumbent MNOs. Even though the two reports seem to differ on the reasons for the high prices of data in SA, they agree that there are significant inefficiencies in the wholesale, roaming and site access markets which need to be addressed.