Unlimited calling plan problem in South Africa

Mobile networks’ attempts to offer personal unlimited calling and SMS plans are proving to be a major headache due to abuse by a handful of users.

Vodacom, MTN, and several mobile virtual network operators (MVNOs) like Melon Mobile and Spot Mobile have launched products with uncapped calls for personal use over the past year.

MTN was first to the market when it launched its SuperFlex month-to-month products — which bundle unlimited local calls and SMSs with 10GB, 15GB, or 20GB of mobile data — in September 2023.

SuperFlex’s prices start from a highly-competitive R299 for a package with 10GB of data per month.

The straightforward packages are particularly attractive to users who make regular voice calls and consume a sizeable amount of mobile data in a month.

It initially only planned to provide the product until February 2024 but has continued to sell it a year after launch, suggesting it is proving popular and feasible for the operator.

Vodacom soon followed suit with its PowerFlex offering, starting from R449 for 17GB of monthly data and uncapped local calls and SMSes.

These products not only offer fantastic value for mobile network users but also help put to bed any concerns about running out of minutes or data.

Unfortunately, certain parties exploiting the packages to advance their businesses have caused trouble for the networks.

In the terms and conditions of these services, the mobile networks clearly explain that the packages are intended for personal use and not commercial purposes — such as telemarketing operations.

The reason for this is simple: Other customers could suffer from a degraded network experience if the products were not used as designed, especially at scale.

To determine which customers may be abusing the products for this purpose, MTN uses a proprietary algorithm that monitors usage parameters regularly, detecting likely cases where the package is not being used for personal purposes.

One customer who was flagged by this algorithm and eventually booted off the service after three automated warnings from MTN complained to the Advertising Regulatory Board (ARB) about the operator’s use of “unlimited” in advertising voice calls and SMSes on SuperFlex.

The ARB accepted that there were sound business reasons why the “unlimited” offer could not be used for commercial purposes.

However, it maintained that “unlimited” had a particular meaning which could not be altered by any policy, using the following definitions from Dictionary.com to substantiate its argument:

• not limited; unrestricted; unconfined: unlimited trade.
• boundless; infinite; vast: the unlimited skies.
• without any qualification or exception; unconditional.

“To say that there are ‘unlimited’ local calls and SMSes and then clarify that the local calls and SMSes are restricted is like saying that an item is free, except that you have to pay for some of it. It is two contradictory statements and is therefore inherently misleading,” the ARB argued.

The ARB added the use of “unlimited” was exacerbated by the fact that MTN had not qualified the exceptions to unlimited usage with an asterisk and explanations or specified the packages had “unlimited personal calls or SMSes”.

It said the terms and conditions were not transparent regarding what violated the personal use criteria.

It ordered MTN to amend or withdraw advertising that claims SuperFlex provided “unlimited” calls and SMSes when there were limits to the offers.

MTN sticking to its guns

However, MTN has told MyBroadband it will continue advertising SuperFlex with “unlimited” local calls and SMSes.

The mobile network insists that its application of an Acceptable Use Policy (AUP) differed from a Fair Usage Policy (FUP) that restricted usage when customers reached certain thresholds.

“Unlike a FUP, the AUP does not apply usage limits to call and SMS services,” MTN said.

“Instead, the AUP monitors a variety of usage parameters to ensure that there is alignment to how the consumer uses the product, as opposed to how much.”

MTN said its AUP algorithm had only identified a “few” instances of non-compliant usage.

“The vast majority of SuperFlex customer’s usage is aligned with the product guidelines and AUP,” MTN said.

“Our system has previously identified some instances of non-conformance from users who appear to be using the service for non-consumer purposes, such as telemarketers, bulk calling and messaging providers, automatic calling systems and customer support centres.”

“When these customers are made aware thereof, they have either adjusted their nature of usage or opted to select a different MTN package based on their needs.”

The operator also explained the algorithm monitored a number of parameters and behavioural metrics, including:

• The devices being used
• The number of unique numbers called/calling
• SMS messages sent/received
• Data usage
• Distribution of usage

“Potential non-conformance would be flagged when multiple behavioural metrics differ significantly from the current base — this ensures that our algorithm remains aligned to everchanging consumer behavioural trends.”

MTN said it allowed customers to query a service suspension due to non-conformance.

Where acceptable evidence has been provided that the usage is for personal purposes, and is compliant to the AUP and terms and conditions, MTN may consider reinstating their service.

MyBroadband wanted to learn more about the nature of the ARB complainant’s usage, but MTN said it would not disclose this as it would contravene the Protection of Private Information Act.

MTN’s use of an automated AUP that is not linked strictly to high usage alone is standard industry practice for some uncapped broadband products.

Even fibre-to-the-home providers implement an AUP that ensures they can take action against customers with extreme usage habits that could negatively impact others’ experience.

The Melon Mobile case

Melon Mobile also previously came under fire after it introduced FUP thresholds on its Unlimited packages, launched in November 2023.

The MVNO later explained to MyBroadband that these were necessary as it had observed people abusing the plans in call centres and call shops.

However, unlike MTN, it did not have an automated algorithm to clamp down on abuse.

Therefore, it used thresholds to manually flag when a user may be using the service for non-personal purposes.

However, a customer could request an extension of their call or SMS allocation, and if Melon Mobile found no abuse had occurred, they would reset their FUP.

The entry-level package with R199 had a FUP threshold of 750 minutes and 750 SMSs.

Even if a user could no longer make voice calls or send SMSs after reaching that threshold, the package still offered incredibly good value for money compared to buying those allocations on prepaid bundles from any network.