MTN South Africa CEO Godfrey Motsa said on Friday that 1 gigabyte (GB) of data valid for 30 days on April 15 will be 33.55% cheaper, from R149 to R99.
Other data bundles’ prices have not yet been announced, but according to Motsa the price reductions will be up to 50% and will be announced soon.
MTN has not yet finally agreed with the Competition Commission on its steps, but according to Motsa, all the steps they announced on Friday are in line with the criteria proposed by the commission.
Talks will be finalized next week.
One of the other major requirements of the commission was that every South African should have access to a limited amount of free data, even if they could not afford airtime.
MTN says all 29 million of its customers will now receive 20 megabytes (MB) of data daily for free.
Communications Minister Stella Ndabeni-Abrahams says the government is pleased with the steps announced by MTN.
“As policymakers we are very happy,” she says.
Motsa concedes that MTN’s revenue will initially be hampered by the new prices.
“In the short term, we expect a significant drop in earnings.”
He reckons the decline will only last for one quarter and then increase again due to the increase in volume.