Consumers 0, Cellular Operators 1
The Independent Communications Authority of South Africa (ICASA) first published its Regulation on Handset Subsidies on 11 June 2008, with a planned implementation date of 18 August 2008.
Ellipsis Regulatory Solutions explains that the basic thrust of the regulations is to make mobile contracts more transparent to consumers and in particular to make it clear that handsets bundled with contracts were not, in fact, “free.”
Consumers were also to be given the choice of different lengths of contracts ranging from 6 months to 24 months.
The implementation date was however postponed to 1 February 2009 after Vodacom indicated that it would take the Regulator to court due to the fact that new material, not canvassed in the public participation process, had been included in the final regulations.
Industry opinion is that Vodacom were, on the whole, justified in taking this approach and that ICASA’s sloppy work was to blame for the problems.
ICASA then stated that the cellular companies should prepare their systems for implementation on 1 February 2009, but on 20 March 2009 ICASA withdrew its ‘Handset Subsidy Regulations’ which the regulator initially published with a postponed implementation date.
Ellipsis Regulatory Solutions said at the time that “ICASA has flattered to deceive once again as it has waved the white flag on its attempts to protect South African consumers from predatory marketing and other practices on the part of the cellular service providers.”
“This is a fail on the part of ICASA. There may well be cogent reasons for redoing the process (although the concept seems laughably simple and delay suits the purpose of those affected), but the failure to in any manner engage with those most affected is not acceptable,” said Ellipsis Regulatory Solutions.
“ICASA is mandated to protect consumers. It seems rather more intent on ignoring them.”
In February 2010 ICASA held public hearings on the Draft Code of Conduct on the sale, lease rental or subsidisation of subscriber equipment.
This new Code of Conduct would replace the withdrawn Handset Subsidy Regulations, but Ellipsis Regulatory Solutions pointed out that “it is not a straight swap – especially insofar as we are now not only dealing with handsets.”
“It is consumer protection regulation intended to prescribe a code of conduct and minimum standards relating to sale, lease, rental or subsidisation of subscriber equipment.”
ICASA has now announced (through the Government Gazette of 18 March 2011) that it put this regulations process on hold until further notice.
ICASA indicated that it analyzed the objections by industry and stakeholders, and concluded that the empowering legislation on regulation of subscriber handsets is not cut and dry in its current form and content.
“An attempt will be made to strengthen the Authority with express powers that will enable it to regulate subscriber handsets,” ICASA said.
Consumers 0, Cellular Operators 1 << Comments and views
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