I used to work for Cell C about a year ago.
At the time, when cancelling a contract, the ONLY fee you pay is the handset portion for the remaining months.
No penalties, no cancellation fee.
One months notice.
I know this as a fact!
You can pm me and ill put you in touch with a guy that knows a lot about this.
I might be wrong, but this is how I understand it…
Your cancelation fee comprises of the following components:
1. Cannot resell – typically a device/hardware – the customer needs to pay outstanding amount not recovered yet on this device.
2. Can resell – Your minutes and data not used yet. Ideally they only need to charge you for what you used. The rest they can resell.
3. Admin fee – The service provider needs to appoint someone to process the cancellation, and this is where the “grey” area is.
This is BS, handsets skews the results. Cell C charges no cancellation fee provided you give 1 month notice and only the outstanding amount you owe on the device you bought so they are 1st. MTN charges an additional 1 month during which you also can't use the service. Not sure what Telkom charges but I'd put them 3rd or 2nd. Vodacom charges you 75% irrespective of the device you have.
Cell C's way is definitely legal and so is MTN and Telkom's,however Vodacom's way is suspect and may not comply with CPA.
The other 3 networks way makes sense as far as being fair to themselves and the consumer as they are just recovering their handset value and one month cancellation notice at best,while Cell C even waives the latter.