Court puts new data regime on hold
Cell C wants at least six months to set up data expiry system
Our billing and other technical platforms are highly complex and rely on one another to operate effectively
● If South Africa’s largest mobile operators have their way, consumers will need to wait at least three more months — and maybe half a year — before South Africa’s new data expiry rules come into effect.
Cell C this week bought itself and its rivals at least two more weeks’ breathing space before they have to comply with the Independent Communications Authority Of South Africa’s end-user and subscriber service charter regulations. The rules were meant to come into effect on Friday, just a month after Icasa published them.
The regulations say telecommunications companies must send notifications to subscribers about data bundle use and must let consumers roll over unused data.
Furthermore, subscribers will have to actively opt in to more expensive out-of-bundle rates when their data bundles are used up — a clause that Icasa says will safeguard users from “bill shocks”.
But the four largest mobile operators told Icasa that while they were largely comfortable with the new rules and were already partially compliant, they were not given nearly enough time to update their systems.
Cell C said it needed at least another six months to prepare. This was because the operator’s billing and other technical platforms “are highly complex and rely on one another to operate effectively — which means that a change in one system often results in changes being required in others”, a spokesperson said.
It would also have to “rigorously” test the updated systems before launching them. And being the only operator that lets mobile virtual network operators use its infrastructure, Cell C has the additional task of making sure Virgin Mobile, FNB Connect and MRP Mobile are also up to speed with the new rules.
When it became clear the regulator would not budge on its June 8 implementation date, Cell C approached the High Court in Johannesburg on Wednesday, seeking an urgent interdict.
The court ruled on Thursday that Icasa and Cell C’s peers had 10 days to submit answering affidavits, and that Cell C would have another five days thereafter to respond.
Until a ruling is made, Icasa will not be allowed to implement the new rules or penalise licensees for noncompliance, the court said.
Icasa, which will oppose Cell C’s application, said its decision to stick to the initial implementation date was made “in the public interest”, as an extension would subject consumers to unfair business practices for longer.
MTN and Telkom have backed Cell C’s request for an extension.
Telkom wants an extension of at least three more months to “realign its systems and processes”, a spokesperson said. “The amendments require that Telkom reconfigures many aspects of its billing, accounting and information technology systems in order to be complaint on its current products and services.”
Vodacom spokesman Byron Kennedy said that, given Icasa’s tight deadline, South Africa’s biggest mobile operator had asked the regulator for a “phased implementation” of the rules, but had not received a response.
Like its smaller rivals, “Vodacom is fully committed to implementing the regulations and our technicians are working hard to get our systems ready”, he said.
CEO Shameel Joosub said in May that the rules would dent the operator’s revenues since 12% of its data revenues came from out-of-bundle charges.
Vodacom would mitigate the effects of the new rules by encouraging customers to use more data and by selling more data-capable phones, Joosub said.
Cell C spokesperson