Electronic Communications Act, 2005 (Act No. 36 of 2005)

Regulations

End-User and Subscriber Service Charter Regulations, 2016

Reasons Document: End-User and Subscriber Services Charter Amendment Regulations, 2018

1. Introduction
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1.1On 7 August 2017, the Independent Communications Authority of South Africa ("Authority") published a notice of its intention to amend the End-User and Subscriber Service Charter Regulations of 2016 (Government Gazette 39898), under General Notice No. 822 in the Government Gazette 41030 ("the first draft EUSSC Regulations") and invited public comments to be made within a period of thirty (30) working days1.

 

1.2This amendment was necessitated by general concerns raised by various stakeholders, including consumer groups and social media campaigns, with regards to data expiry rules, high out-of-bundle rates and rules and also out-of-bundle voice and Short Messaging Service ("SMS") rules currently applied by licensees.

 

1.3The aforementioned concerns range from consumer complaints about the unfairness arising from the expiry of data bundles or the forfeiture of unused data if not used within a particular period prescribed by the licensee to pronouncements by parliament and other authorities to the effect that these industry rules and/or practices prejudice consumers and are perceived to be contrary to the provisions of section 63 of the Consumer Protection Act No. 68 of 2008 ("CPA"). In addition, consumers have raised concerns about ‘open line’ of post-paid, hybrid and prepaid tariff plans being susceptible to being charged high out-of bundle rates when once-off or recurring bundles are depleted.

 

1.4To address the above mentioned concerns, the first draft of the EUSSC Regulations proposed, among others, the following provisions to empower endusers:
1.4.1Notifications of voice, SMS depletion to be sent to the end-users at set intervals and also provision for end-users on post-paid /hybrid plans to purchase additional services upon such depletion or be disconnected if end-users do not buy additional bundles.
1.4.2End-users to be given an option to opt-in or out of out-of-bundle charges to minimise bill shock.
1.4.3The expiry of data bundles is to be linked to the bundle size, with the shortest being ten (10) days for bundles between 1 Megabyte and 50 Megabytes, and the longest being twenty-four (24) months for 20GB and above.
1.4.4Allowance for the roll-over of unused data when an end-user recharges prior to the expiry date.
1.4.5Licensees to conduct quarterly consumer education and awareness to educate end-users on the use of smart phones, use of data and provision of information on the broad range of products and services offered.

 

1.5The Authority received written representations2 on the first draft EUSSC Regulations from:—
1.5.1Cell C ;
1.5.2Telkom;
1.5.3MWEB;
1.5.4MTN;
1.5.5Vodacom;
1.5.6South African Communications Forum;
1.5.7Joris Stork;
1.5.8Nonkululeko Abavana;
1.5.9KE Mokone;
1.5.10Liquid Telecom (formerly known as Neotel);
1.5.11Ivan Roux;
1.5.12Nhlakanipho Zuma;
1.5.13JP du Plessis;
1.5.14Mr M.P. Yates;
1.5.15PA du Plessis;
1.5.16Izak Nothling;
1.5.17Johan Kriel;
1.5.18Ofentse Maloba;
1.5.19Jo-Anne Stolp; and
1.5.20SANCU.

 

1.6After taking into account written submission on the first draft EUSSC Regulations, the Authority published the second draft End-User and Subscriber Service Charter Regulations under General Notice No. 629 in the Government Gazette 41263 of 17 November 2017 ("the second draft EUSSC Regulations") for further public comments for a period of thirty (30) working days.3

 

1.7The second draft EUSSC Regulations proposed new provisions in respect of the minimum validity period of three (3) years for prepaid data bundles and the rollover and transfer of unused post-paid data.

 

1.8The Authority received representations4 on the second draft EUSSC Regulations:—
1.8.1Amandla.mobi;
1.8.2Cell C;
1.8.3Crystal Web Mobile & LEASP;
1.8.4Free Market Foundation;
1.8.5ISPA;
1.8.6Liquid Telecom;
1.8.7Mark Lister;
1.8.8MTN;
1.8.9MWEB;
1.8.10National Consumer Commission;

1.8.11. Telkom;

1.8.12. Vodacom; and

1.8.13. WAPA.

 

1.9The Authority published a media release on its website5 on 26 February 2018 with respect to the public hearings to be held on the second draft EUSSC Regulations which were held on 01 and 02 March 2018.

 

1.10The Authority published a schedule of the aforementioned public hearings on the second draft End-user Regulations on its website6 on 26 February 2018.

 

1.11All interested parties, except Mark Lister and MWEB7, who submitted written representations on the second draft EUSSC Regulations participated in the public hearings.

 

1.12After the public hearings the Authority received supplementary written representations on the second draft EUSSC Regulations from the following stakeholders:—
1.12.1Cell C;
1.12.2Vodacom;
1.12.3ISPA;
1.12.4Crystal Web;
1.12.5MTN;
1.12.6Amandla.mobi; and
1.12.7Telkom.

 

                                                                                                   

1 The due date for submission of written representations was 19 September 2017.
2The National Consumer Commission made a presentation on the amendment to the first EUSSC Regulations to the End-user and Subscriber Charter Council Committee on 14 September 2017. However, the National Consumer Commission did make a written representation on the Regulations
3The due date for submission of written representations was 3 January 2018.
4https://www.icasa.org.za/pages/end-user-and-subscriber-service-charter-regulations
5https://www.icasa.org.za/news/2018/icasa-to-hold-public-hearings-in-respect-of-the-second-draft-of-the-enduser-and-subscriber-service-charter-regulations
6https://www.icasa.org.za/news/2018/schedule-for-public-hearings-on-the-draft-end-user-and-subscriberservice- charter-regulations
7Both Mark Lister and MWEB confirmed via email their unavailability to participate in the public hearings.