New data laws to hit operators

New regulation, which puts an end to cellphone users losing unused data, while a benefit to consumers may pose a headache for mobile operators. The final End-User and Subscriber Service Charter Regulations was announced by the Independent Communications Authority of SA last week.

New regulations that end cellphone users losing unused data may benefit consumers, but could end up being a headache for mobile operators.

The final End-User and Subscriber Service Charter Regulations were announced by the Independent Communications Authority of SA on Thursday. Data network operators must now allow customers the option to roll over unused data.

Licensees will also have to send usage depletion notifications to consumers when usage is at 50%, 80% and 100%. They must also allow consumers to transfer data to others.

The new regulations will no longer allow service providers to charge out-of-bundle rates for data when it is depleted without the consumers’ “specific prior consent”.

Ofentse Dazela, director of pricing research at Africa Analysis, said the charter brought good news to consumers, but the effect would differ depending on consumption.

Consumers who bought low-capacity data bundles would barely benefit from the rolled-over option.

CONSUMERS WHO BUY LOW-CAPACITY DATA BUNDLES WILL BARELY BENEFIT FROM THE ROLLED-OVER DATA OPTION

Dazela said it would have been better if the option to roll over data was limited to 500MB and operators could then “play around with different pricing models as far as smaller bundles are concerned”.

Operators believe the new regulation will make it difficult to plan for capacity, as data will no longer expire at a predetermined date.

“This means they will need to over-provide capacity. The implication of this is that retail prices may go up,” Dazela said.

He said the move could also stifle operators in terms of their ability to provide more innovative solutions.

“It is most likely that the hourly, daily, weekly, semester and annual bundles offered in the market by operators will be discontinued as they look to conform with the new regulations,” he said.

MTN SA spokeswoman Jacqui O’Sullivan said while it had been expected the regulator would deal with the issues raised, the extent of the changes would only come to light once the detailed regulations were published next week.

Vodacom spokesman Byron Kennedy said they would comment in “due course”.

Cell C did not respond to a request for comment by the time of going to print.