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Executive Member
- Joined
- Feb 6, 2004
- Messages
- 8,195
'Exclude telecoms from Bill'
'Exclude telecoms from Bill'
Aug 18 2005 09:37:29:090PM
By: Donwald Pressly
Cape Town - Vodacom (Pty) Ltd has led the charge in parliament among cellular network companies which argued before a parliamentary committee that the National Credit Bill should not be made applicable to cellular telecommunication service contracts.
In a written submission on Wednesday to the National Assembly trade and industry portfolio committee, Vodacom said that the respective rights and negotiating powers between cellular operators and consumers were "to a considerable extent" balanced.
"This balance is due to the fact that, in order to obtain a cellular telecommications service from a cellular operator, a customer need not enter into a subscriber contract with a cellular operator.
"There is an equivalent alternative in the form of a prepaid package that a customer can purchase in order to gain access to a cellular service."
In terms of the Bill - which is the subject of public hearings before the committee - its provisions apply to every credit agreement between parties dealing at arms length and made within the republic except in a few exceptions including a credit agreement between a stokvel members or between family members.
Vodacom noted that President Thabo Mbeki had said in his State of the Nation address in 2004 that there was a need to lower the cost of doing business.
Vodacom submitted that compliance with the requirements and administrative procedures of the Bill "will substantially increase the cost of conducting business across most of the sectors of South Africa's economy".
In another submission, MTN and Cell C (Pty) Ltd expressed similar concerns.
MTN Group executive of regulatory affairs Nkateko Nkoya and Cell C head of regulatory affairs Karabo Motlana said they were concerned that the services provide to contract customers by their companies "may fall within the ambit of the Bill and therefore be subject to regulation as provided in the Bill."
In providing voice and data services to "post-paid" customers, the contract provided that the subscription paid for accessing the service is paid in advance and payment for the use of airtime and data is paid monthly in arrears.
The contract was similar in nature to contracts for the provision of a multitude of services including water, electricity and fixed line telephones, it argued.
Their services should fall outside of the ambit of the legislation, they said.
One of the objects of the legislation is to give the trade and industry minister the powers to regulate the cost of credit and to allow him or her to establish an interest cap and other cost controls and prohibit interest or other costs in excess of prescribed rates.
It also spells out training requirements in terms of the legislation by credit providers and a complex identification system of such credit providers.
Anyone seem the amount of paperwork one has to sign to get a Vodacom Contract. Its like signing a bond.
I was most distressed the day I asked for a statement from Vodacom so that I can see how the total figure was derived on my bill, only to be told that they would levy an extra R20 for this small service which for all and intense and purposes should be part of their billing system.
'Exclude telecoms from Bill'
Aug 18 2005 09:37:29:090PM
By: Donwald Pressly
Cape Town - Vodacom (Pty) Ltd has led the charge in parliament among cellular network companies which argued before a parliamentary committee that the National Credit Bill should not be made applicable to cellular telecommunication service contracts.
In a written submission on Wednesday to the National Assembly trade and industry portfolio committee, Vodacom said that the respective rights and negotiating powers between cellular operators and consumers were "to a considerable extent" balanced.
"This balance is due to the fact that, in order to obtain a cellular telecommications service from a cellular operator, a customer need not enter into a subscriber contract with a cellular operator.
"There is an equivalent alternative in the form of a prepaid package that a customer can purchase in order to gain access to a cellular service."
In terms of the Bill - which is the subject of public hearings before the committee - its provisions apply to every credit agreement between parties dealing at arms length and made within the republic except in a few exceptions including a credit agreement between a stokvel members or between family members.
Vodacom noted that President Thabo Mbeki had said in his State of the Nation address in 2004 that there was a need to lower the cost of doing business.
Vodacom submitted that compliance with the requirements and administrative procedures of the Bill "will substantially increase the cost of conducting business across most of the sectors of South Africa's economy".
In another submission, MTN and Cell C (Pty) Ltd expressed similar concerns.
MTN Group executive of regulatory affairs Nkateko Nkoya and Cell C head of regulatory affairs Karabo Motlana said they were concerned that the services provide to contract customers by their companies "may fall within the ambit of the Bill and therefore be subject to regulation as provided in the Bill."
In providing voice and data services to "post-paid" customers, the contract provided that the subscription paid for accessing the service is paid in advance and payment for the use of airtime and data is paid monthly in arrears.
The contract was similar in nature to contracts for the provision of a multitude of services including water, electricity and fixed line telephones, it argued.
Their services should fall outside of the ambit of the legislation, they said.
One of the objects of the legislation is to give the trade and industry minister the powers to regulate the cost of credit and to allow him or her to establish an interest cap and other cost controls and prohibit interest or other costs in excess of prescribed rates.
It also spells out training requirements in terms of the legislation by credit providers and a complex identification system of such credit providers.
Anyone seem the amount of paperwork one has to sign to get a Vodacom Contract. Its like signing a bond.
I was most distressed the day I asked for a statement from Vodacom so that I can see how the total figure was derived on my bill, only to be told that they would levy an extra R20 for this small service which for all and intense and purposes should be part of their billing system.
