Vodacom breaks ISPA guidelines on broadband
Vodacom is advertising a hard-capped broadband service as uncapped, which is against the Internet Service Providers Association’s “Guidelines and Recommendations on Broadband Terminology”.
It offers three “Home Internet LTE Uncapped” packages with speeds of up to 10Mbps, 20Mbps, and 30Mbps.
Vodacom informed its subscribers that effective from 15 February 2023, “all new and existing uncapped Home Internet customers will be subject to a hard lock”.
Once the soft cap fair use policy (FUP) has been reached, as per the respective price plan, a subscriber’s service is interrupted unless they buy more data.
“To continue data usage, customers should purchase a 100GB or 200GB bundle,” Vodacom said.
The ISPA guidelines define this type of service as “hard-capped Internet access”.
It defines four types of broadband services:
- Unrestricted, uncapped Internet access: No cap. Acceptable use policy may only restrict illegal activity, not usage behaviour. May be linked to a specific access speed.
- Uncapped Internet access: No cap. Acceptable use policy can place limitations on user behaviour and define “abuse” criteria which can result in service restrictions. May be linked to a specific access speed.
- Soft-capped Internet access: Service is provided on a metered basis. After the customer exceeds a “soft cap”, they still have Internet access, but significant restrictions are applied, such as limited international access or vastly reduced access speeds.
- Hard-capped Internet access: Service is provided on a metered basis (limited traffic volume, or limited amount of time online). After the customer exceeds this cap, no access to the Internet is provided until the customer purchases additional services.
Vodacom continues to promote the service as “Home Internet LTE Uncapped” even though it is a hard-capped product.
Vodacom argues that the vast majority of customers won’t reach the hard cap, which means it is “effectively providing an uncapped service”.
This argument has no substance and does not satisfy the ISPA requirement to call a broadband service uncapped.
Although Vodacom is not an ISPA member despite being one of the largest ISPs in the country, its misuse of the term “uncapped” will create unnecessary confusion in the market.
ISPA itself also states that members are not required to use the broadband categories as defined in its guidelines.
To not encroach on the domain of the Advertising Regulatory Board (then the Advertising Standards Authority), ISPA didn’t force its definitions on marketing material.
“ISPA wishes to emphasise that the above characterisation is intended as a guide to understanding broad categories,” it states.
“It does not mean that the use of [these] terms… in marketing material should be interpreted in accordance with this section.”
However, as a market leader, if Vodacom’s abuse of the term gains traction, it will lose all meaning, and other ISPs will have to find another word for their uncapped products.
Vodacom and ISPA respond
MyBroadband contacted Vodacom for comment and asked if it thinks ISPA’s terminology guidelines are sensible.
“We are currently reviewing our position on the matter and will provide an update in due course,” a Vodacom spokesperson told MyBroadband.
“As matters stand, we can confirm that no customer has been hard locked as yet, given that the terms and conditions were to be effective from 15 February.”
Vodacom confirmed that it is not an ISPA member, but that Vodacom Business has applied to join the association.
MyBroadband also contacted ISPA for comment, confirming that it received a membership application from Vodacom Business.
Regarding Vodacom’s use of “uncapped” to describe its hard-capped product, ISPA said companies should make any restrictions on their services clear before customers sign up.
“ISPA has repeatedly stressed the importance of making any restrictions clear to a customer up-front,” a spokesperson told MyBroadband.
“If a service has an Acceptable Use Policy, this must be obvious to the customer when signing up for that service.”
On whether its exemption for marketing material would apply to Vodacom’s use of the term “uncapped” for its hard-capped product, ISPA explained that a separate part of its Code of Conduct applies.
“ISPA’s Code of Conduct includes requirements that […] members convey information about their services clearly and accurately to customers and potential customers,” the spokesperson said.
“Complaints from consumers that members are in breach of any of the requirements of the Code are reviewed by independent adjudicators who impose remedies and/or sanctions, as appropriate.”
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