Network operators ordered to amend contracts

South Africa’s four primary cellular network operators and two fixed-line providers will have to implement new customer contracts to be in line with the Consumer Protection Act.

By - July 18, 2011
Man Signing Contract

South Africa’s four primary cellular network operators and two fixed-line providers will have new customer contracts that are compliant with the Consumer Protection Act in place within the next three months, according to Business Report on Monday.

This came as national consumer commissioner Mamodupi Mohlala prepared to sign consent order agreements this week with each of the companies. These agreements were legally binding and a fine of R1 million or 10 percent of annual turnover could be imposed if they were breached.

Mohlala said that over the past two weeks the commission had reviewed all contracts provided by the individual companies and none of the contracts were compliant with the act. This, despite the fact that it had been in the pipeline for the past five years and its implementation was postponed from September last year to April this year.

She said that in most cases about 75 percent of the cellphone contract terms and conditions would have to change.

Companies would have to change their billing systems, marketing approach and their staff would have to be educated and more skilled, which would require more spending on human resources, she said.

“There is nothing untoward… we are aligning South Africa with international best practice.”

Mohlala said Cell C, Telkom and 8.ta would have their contracts amended by the end of September, Neotel by next month and MTN and Vodacom both expected to have amended their contracts by the end of October.

Share your thoughts

Shutterstock is the image partner of MyBroadband – more technology images

Join the conversation

Connect with Us

androidappletwitterfacebookgoogleplusfeednewsletter

Poll

Do you think the SABC should be sold?

View Results

Loading ... Loading ...

More News

Unlike other ANC MPs, Nhlanhla Nene can actually get a job

Nhlanhla Nene

What distinguishes Nhlanhla Nene from other MPs, said an economist, is his employability.

Warning: cheap USB-C cables can kill your PC

USB Type-C

A Google engineer has made it his mission to warn the world about the dangers of cheap, improperly-certified USB-C cables.

Here is who qualifies for Telkom’s free ADSL-to-FTTH trial

Telkom fibre

Telkom has provided details on which ADSL subscribers qualify for its new fibre trial, which includes two months’ free access to a 20Mbps fibre product.

We are not criminals: Vodacom

Vodacom MTN alleged agreement

Vodacom and MTN have denied any wrongdoing in the music royalties row, where artists are accusing the mobile operators of violating copyright laws.

X

Newsletter Subscription


Name
Email *
Enter the following to confirm your subscription *
Captcha image


Free MyBroadband Newsletter
Subscribe
x