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Vodacom CEO faces backlash over R99 for 5GB data statements
Vodacom CEO Sitholizwe Mdlalose asserted that consumers can purchase 5GB of mobile data for just R99.
Image: Screengrab
Vodacom CEO Sitholizwe Mdlalose asserted that South African consumers can purchase 5GB of mobile data for just R99, igniting a storm of criticism on social media platforms.
Addressing the Communications and Digital Technologies Portfolio Committee, Mdlalose highlighted a significant drop in data prices, reporting a reduction of nearly 50% over the last two years.
'One can look at that and see the retail price of that in 2019 was R149 for one gigabyte of data. As we have become more efficient, as the spectrum has been deployed and given, and as new technologies have come on, you can see the progression in the headline retail rate,' he said.
'You can see a very dramatic drop, especially post the spectrum allocation, where one gigabyte of data at a retail rate in 2021 was R85. Today, you can buy five gigabytes for R99. Essentially, that gives a view of how the rate has moved over time,' Mdlalose said.
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He made the statement when mobile network operators (MNOs) made presentations on progress made towards the national goal of universal connectivity and the approaches towards further reducing the cost of communication, among others.
However, Mdlalose's assertion was met with widespread scepticism and disdain on the social media platform, X (formerly Twitter).
User @ApostleDeza challenged his saying: 'There is NO ONE in South Africa Buying 5GB for R99! Bathong!'
@Apostle_Deza hoped that EFF MPs would 'hold this man accountable for his White Lies', but another X user warned of wanting to embarrass them.
While some X users shared the sentiment that Mdlalose was lying and showing prices that did not display the 5GB for R99, user @Mxoza1 said: 'He is referring to this 5GB of LTE.'
EFF MP Sixolise Gcilishe took up the issue of the reduction of data during the question-and-answer session.
'I think if we really have the same objective with the MNOs, we're not going to lie to each other or we're not going to deliberately mislead each other,' Gcilishe said.
She said that after Mdlalose mentioned the 5GB for R99, she had taken her phone and tried to check what he was saying.
'The first thing I realised in the exercise I was doing was the inconsistencies as far as the pricing is concerned. When you check on your phone, you're going to buy with your airtime. The prices are different if you're buying through a bank.'
Gcilishe also said the five gigabytes for R99 was for the data offers.
'That is for the modems when I had to check. Maybe you can clarify that because then now you're giving us an impression that there is five gigabytes that people can get for that amount.'
She insisted that the reduction in data pricing was according to the packages and the modems, 'which is not something that the poor people are enjoying. They're not enjoying modems and the data packages.'
In response, Mdlalose said the 5GB for R99 was available on mobile.
'It's not a separate internet offer. It's actually there. In fact, as the session was going on, honourable chair, there were people on social media asking about it. Our team has responded to them, shown them exactly where they can buy it. It's fully available. It's not hidden somewhere,' he said.
'The fact that you are not aware that that is available is part of the challenge for us to make you aware of that,' Mdlalose said.
He added that within their business, there were different ways to distribute their products, and each of those different channels has different commercials that you need to pay for.
'There might be different prices on different channels, but ultimately, the five gigabytes is available for customers, available on all of our channels that we distribute directly,' Mdlalose said.
