‘Loan sharks to the poor’ – Mobile network operators grilled by MPs over data costs [VIDEO]

Mobile network operators (MNO) Vodacom, MTN, Cell C, Telkom, and Rain have come under fire for poor connectivity and their pricing and expiration policies for services such as data.

The mobile network operators appeared before the Communications Committee on Friday to provide an update on the challenges and progress made in achieving universal connectivity.

Members of Parliament (MPs) grilled the MNOs relating to the cost of data and called for them to consider measures to further reduce the cost of communication and prioritise rural connectivity.

While the CEOs of the MNOs told the committee that they’ve made major strides in expanding coverage, especially in the 5G network space, MPs questioned their data pricing and the issue of expiring data.

Data costs

EFF MP and national spokesperson Sinawo Thambo riaised concerns about data and airtime expiry.

Thambo challenged the logic behind data and airtime expiry, questioning whether it was a purely capitalist scheme designed to exploit consumers.

He argued that since data and airtime are not perishable goods, their expiry policies are unjust and violate consumer rights by allowing mobile operators to profit unfairly.

“I don’t doubt there is a logical financial explanation for the expiring mandates of data and airtime…Which may be logical to you, but continues to undermine access to information for ordinary South Africans and their ability to live in this country.”

WATCH Colleen Makhubele in Parliament

This week at a glance: “You have become loan sharks to the poor. Instead of cutting data costs, you are advancing it – loaning them.” – Chief Whip Hon. Colleen Makhubele raising concerns about network service providers and their exhorbitant pricing for products such as data and… pic.twitter.com/e3Jw8ufkSB

— MK Party in Parliament (@MKParliament) June 14, 2025

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‘Loan sharks’

MK party MP Colleen Makhubele accused the operators of preying on the poor.

“You have become loan sharks to the poor. Instead of cutting data costs, you are advancing it – loaning them.”

Political parties also noted the high salaries paid to some of the CEOs of the network operators, calling on them to help contribute to uplifting poor and rural communities.

Engagements

Chairperson of the committee, Khusela Sangoni Diko, stated that all the information received will be useful when the committee meets to deliberate on the budget of the Department of Communications and Digital Technologies in the coming weeks.

Diko said the committee also called for increased engagement on the issue of prepaid data expiration.

 “I think we may have to engage more on this topic, especially because people buy this data, and it cannot simply disappear on the basis of MNO-determined timelines.”

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EFF MP @Sinawo_Thambo delivers a scathing critique in the Portfolio Committee on Communications and Digital Technologies, calling out the “revolving door” culture between regulators and mobile network operators.

Commissar Thambo questions the ethics of former… pic.twitter.com/cwix7aMpMH

— Economic Freedom Fighters (@EFFSouthAfrica) June 13, 2025

Competition

In the interest of national security and technology sovereignty, the Committee called on the MNOs to consider mobilising their own resources to build the country’s own satellite for communication.

MTN SA CEO Charles Molapisi told the committee that outside South Africa, the operator has partnerships with non-terrestrial and satellite players such as Starlink.

Molapisi said he welcomed Starlink to South Africa, as MTN would welcome all competition.

“I always say we are not fixated on one key player, Molapisi said. “We see satellite players as one bundle. I’m sure the committee is aware that in some of our markets outside South Africa, we’ve already done partnerships with the likes of Starlink.”

ALSO READ: Fibre, cheaper data and weaver birds: Ramaphosa promises innovation

Regulatory requirements

Vodacom CEO Sitholizwe Mdlalose told the committee that the MNO was guided by President Cyril Ramaphosa’s recent remarks, which stated that Starlink had not been discussed in meetings with the US government, and by Minister of International Relations and Cooperation Ronald Lamola’s remarks that the government’s commitment to attracting foreign direct investment did not refer to Starlink.

“Vodacom recognises satellite networks as complementary to mobile and fixed networks/ We believe they play a role in accelerating digital inclusion and bridging the connectivity divide, especially in hard-to-reach areas.

“Our position has consistently been that there must be a level playing field for all market participants. This is not specific to Starlink, but a matter of principle. Any new entrant to the South African telecommunications sector should be subject to the same regulatory requirements that govern licensed operators,” Mdlalose said.

Starlink

In May, South Africa took a step closer to obtaining Elon Musk’s Starlink satellite internet service after Communications and Digital Technologies Minister Solly Malatsi published a policy direction to provide alternatives, paving the way for the service in the country.

The proposed policy direction was published in the Government Gazette.

“It provides applicants with a workaround to rules on who can acquire a licence to provide electronic communications services or to operate an electronic communications network in the Electronic Communications Act (ECA) that require a minimum of 30% shares to be in the hands of historically disadvantaged individuals.

“These regulations currently prevent companies, regardless of whether they are large international firms that typically do not sell shares to local partners, from qualifying for individual licences under the ECA, even if they can contribute to South Africa’s transformation goals through means other than traditional ownership.

Musk not black

Talks on launching Starlink in South Africa stalled earlier this year after South African-born Elon Musk and US President Donald Trump ramped up public rhetoric against policies such as the Broad-Based Black Economic Empowerment (BEE) laws, which mandate that foreign-owned telecoms companies allocate at least 30% of local equity to historically disadvantaged groups, primarily black South Africans.

Musk claimed Starlink was barred from operating in South Africa because he is not black, an allegation South African officials refuted.

ALSO READ: WATCH: Starlink not debated with Trump, Ramaphosa says