Home Telcos CEO Weekends: Cell C Accuses MTN And Vodacom Of Anti-competitive Conduct

CEO Weekends: Cell C Accuses MTN And Vodacom Of Anti-competitive Conduct

by Caroline Vutagwa
0 comment


South African mobile service provider Cell C passed a complaint with the Competition Commission against mobile operators, MTN and Vodacom, for anti-competitive conduct.

The complaint was directed to the manner in which the mobile operators discriminate between their on-net and off-net effective prices, which has a direct impact on smaller operators’ ability to acquire new customers.

“The two dominant incumbents discount their effective on-net prices substantially while charging a premium for their customers to call off-net. This amounts to discriminatory pricing and is without doubt anti-competitive when adopted by dominant operators,” says Cell C CEO Alan Knott-Craig.

Cell C has been intensely competing on all fronts with the ultimate aim of driving down prices for the consumer, which is also beneficial for Cell C.

“Customers that call off-net are being penalized often without them realizing it. With number portability, customers don’t always know if they are calling on- or off-net anymore, so they don’t actually know what rate they are paying,” says Knott-Craig.

Regulators, in many mobile markets, are opposed to differential on-net and off-net pricing, and in some instances, dominant mobile network operators are facing stiff fines for this kind of discriminatory pricing, which locks in customers and prevents switching.

You may also like

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Accept Read More
%d bloggers like this: