Close Menu
TechCentralTechCentral

    Subscribe to the newsletter

    Get the best South African technology news and analysis delivered to your e-mail inbox every morning.

    Facebook X (Twitter) YouTube LinkedIn
    WhatsApp Facebook X (Twitter) LinkedIn YouTube
    TechCentralTechCentral
    • News
      Digital authoritarianism grows as African states normalise internet blackouts

      Digital authoritarianism grows as African states normalise internet blackouts

      19 December 2025
      Starlink satellite anomaly creates debris in rare orbital mishap

      Starlink satellite anomaly creates debris in rare orbital mishap

      19 December 2025
      TechCentral's South African Newsmakers of 2025

      TechCentral’s South African Newsmakers of 2025

      18 December 2025
      Malatsi buries Post Office's long-dead monopoly

      Malatsi buries Post Office monopoly the market ignored

      18 December 2025
      China races to crack EUV as chip war with the West intensifies

      China races to crack EUV lithography as chip war with the West intensifies

      18 December 2025
    • World
      Trump space order puts the moon back at centre of US, China rivalry - US President Donald Trump

      Trump space order puts the moon back at centre of US, China rivalry

      19 December 2025
      Warner Bros slams the door on Paramount

      Warner Bros slams the door on Paramount

      17 December 2025
      X moves to block bid to revive Twitter brand

      X moves to block bid to revive Twitter brand

      17 December 2025
      Oracle’s AI ambitions face scrutiny on earnings miss

      Oracle’s AI ambitions face scrutiny on earnings miss

      11 December 2025
      China will get Nvidia H200 chips - but not without paying Washington first

      China will get Nvidia H200 chips – but not without paying Washington first

      9 December 2025
    • In-depth
      Black Friday goes digital in South Africa as online spending surges to record high

      Black Friday goes digital in South Africa as online spending surges to record high

      4 December 2025
      Canal+ plays hardball - and DStv viewers feel the pain

      Canal+ plays hardball – and DStv viewers feel the pain

      3 December 2025
      Jensen Huang Nvidia

      So, will China really win the AI race?

      14 November 2025
      Valve's Linux console takes aim at Microsoft's gaming empire

      Valve’s Linux console takes aim at Microsoft’s gaming empire

      13 November 2025
      iOCO's extraordinary comeback plan - Rhys Summerton

      iOCO’s extraordinary comeback plan

      28 October 2025
    • TCS
      TCS+ | Africa's digital transformation - unlocking AI through cloud and culture - Cliff de Wit Accelera Digital Group

      TCS+ | Cloud without culture won’t deliver AI: Accelera’s Cliff de Wit

      12 December 2025
      TCS+ | How Cloud on Demand helps partners thrive in the AWS ecosystem - Odwa Ndyaluvane and Xenia Rhode

      TCS+ | How Cloud On Demand helps partners thrive in the AWS ecosystem

      4 December 2025
      TCS | MTN Group CEO Ralph Mupita on competition, AI and the future of mobile

      TCS | Ralph Mupita on competition, AI and the future of mobile

      28 November 2025
      TCS | Dominic Cull on fixing South Africa's ICT policy bottlenecks

      TCS | Dominic Cull on fixing South Africa’s ICT policy bottlenecks

      21 November 2025
      TCS | BMW CEO Peter van Binsbergen on the future of South Africa's automotive industry

      TCS | BMW CEO Peter van Binsbergen on the future of South Africa’s automotive industry

      6 November 2025
    • Opinion
      Netflix, Warner Bros deal raises fresh headaches for MultiChoice - Duncan McLeod

      Netflix, Warner Bros deal raises fresh headaches for MultiChoice

      5 December 2025
      BIN scans, DDoS and the next cybercrime wave hitting South Africa's banks - Entersekt Gerhard Oosthuizen

      BIN scans, DDoS and the next cybercrime wave hitting South Africa’s banks

      3 December 2025
      Your data, your hardware: the DIY AI revolution is coming - Duncan McLeod

      Your data, your hardware: the DIY AI revolution is coming

      20 November 2025
      Zero Carbon Charge founder Joubert Roux

      The energy revolution South Africa can’t afford to miss

      20 November 2025
      It's time for a new approach to government IT spend in South Africa - Richard Firth

      It’s time for a new approach to government IT spend in South Africa

      19 November 2025
    • Company Hubs
      • Africa Data Centres
      • AfriGIS
      • Altron Digital Business
      • Altron Document Solutions
      • Altron Group
      • Arctic Wolf
      • AvertITD
      • Braintree
      • CallMiner
      • CambriLearn
      • CYBER1 Solutions
      • Digicloud Africa
      • Digimune
      • Domains.co.za
      • ESET
      • Euphoria Telecom
      • Incredible Business
      • iONLINE
      • IQbusiness
      • Iris Network Systems
      • LSD Open
      • NEC XON
      • Netstar
      • Network Platforms
      • Next DLP
      • Ovations
      • Paracon
      • Paratus
      • Q-KON
      • SevenC
      • SkyWire
      • Solid8 Technologies
      • Telit Cinterion
      • Tenable
      • Vertiv
      • Videri Digital
      • Vodacom Business
      • Wipro
      • Workday
      • XLink
    • Sections
      • AI and machine learning
      • Banking
      • Broadcasting and Media
      • Cloud services
      • Contact centres and CX
      • Cryptocurrencies
      • Education and skills
      • Electronics and hardware
      • Energy and sustainability
      • Enterprise software
      • Financial services
      • Information security
      • Internet and connectivity
      • Internet of Things
      • Investment
      • IT services
      • Lifestyle
      • Motoring
      • Public sector
      • Retail and e-commerce
      • Satellite communications
      • Science
      • SMEs and start-ups
      • Social media
      • Talent and leadership
      • Telecoms
    • Events
    • Advertise
    TechCentralTechCentral
    Home » Opinion » Duncan McLeod » Data expiry: Icasa must proceed with caution

    Data expiry: Icasa must proceed with caution

    By Duncan McLeod14 August 2017
    Twitter LinkedIn Facebook WhatsApp Email Telegram Copy Link
    News Alerts
    WhatsApp

    There is little argument that when communications regulator Icasa cut mobile call termination rates — the per-minute charges operators levy on each other to carry calls between their networks — there was a significant flow-through of benefits to end users.

    Smaller operators Cell C and Telkom could take advantage of the lower charges to compete more effectively on price with their bigger rivals, Vodacom and MTN. A price war ensued, and today South Africans are paying much less, on average, for voice telephony than they did just five years ago.

    Although Icasa made a mess of crafting the regulations — resulting in a successful but ultimately futile court challenge from the big incumbents — the 90%-plus reduction in the wholesale rates over the past half a decade or so has led to lower retail prices. It could be argued that termination rates should never have been allowed to be as high as they were — R1.25/minute at their peak — but forcing them down was the right thing to do.

    The intervention warrants caution and careful interrogation because there’s a danger that it could lead to unintended consequences, including higher prices

    There is now mounting pressure on the regulator to do something similar when it comes to data — to deal with (perceived) high prices and aggressive data expiry policies by the operators. In the first of a series of planned interventions, Icasa last week published draft regulations dealing with data expiry. The move has been widely welcomed by consumers, but the intervention warrants caution and careful interrogation because there’s a danger that it could lead to unintended consequences, including higher prices.

    To recap, the draft regulations propose various tiers of data expiry based on the size of data bundle purchased. They also attempt to put a stop to the exploitation by the operators of out-of-bundle pricing, which in some instances is still punitively high: as much as R1/MB or even R2/MB — and few would argue that those prices amount to gouging. Where there has been consumer criticism of Icasa’s draft regulations, it’s been that it hasn’t gone far enough.

    Expiry date

    Many consumers argue, probably incorrectly, that data shouldn’t ever expire. But to optimise and plan their networks, and for simple practicality, data should have a sell-by date. The question is, what should that expiry period be? And should that timeframe be determined by the regulator, or should the market be allowed to decide what’s right? If it’s determined that there’s insufficient competition, then that should be addressed through policy — by licensing new competitors or even creating an environment where the operators are required to open their data networks on a wholesale basis, much like Telkom’s Openserve does now with third-party Internet service providers. It’s worked wonders for the fixed-line market, where ISPs have come up with innovative packages and forced down prices (where they have been able to).

    That said, focusing the regulatory spotlight on data expiry and out-of-bundle pricing — forcing the operators to justify their practices — is not a bad thing. Whatever they might argue, the big mobile networks have not done enough to address the prohibitive costs for the poor of connecting to the Internet.

    It’s clear the operators themselves haven’t done enough to address the affordability gap. They have a serious PR problem

    And the poor end up paying more, per megabyte consumed, than the rich. The wealthy can afford uncapped fixed-line data; the poor are reliant on mobile and often can’t afford the larger data bundles that offer lower in-bundle rates. Hopefully, Icasa’s inquiry will make the CEOs of these companies think more creatively about how to address this issue. In a country where income disparities are so large, it is iniquitous that the poor are expected to pay so much more for data while the rich have uncapped broadband.

    This is one area where Icasa’s draft regulations fall flat: they penalise the poor. Whereas the regulator proposes that those buying 20GB or more of data (those who can afford it) will be able to keep that data for at least 24 months, those buying between 1MB and 50MB (mostly the poor) can expect that data to expire after just 10 days.

    The other big problem is Icasa is proposing regulations that could end up distorting the market. If the operators can’t expire data for, say, 12 months (as is the proposal for those buying between 10GB and 20GB of data), what does that do to retail prices? The fact is, the longer it takes for data to expire, the more the cost there is associated with providing that data.

    Operators need to plan for future demand, and by expiring data after a certain period, they can (in theory) keep prices down. Some have even begun offering (relatively) low-cost data bundles that expire in a day or even after just a few hours: this simply wouldn’t be possible under Icasa’s plan. What does that mean for product innovation?

    There are no easy answers to these issues. But Icasa, under pressure from consumers and politicians, must resist taking a populist course. It must tread carefully in crafting regulations, lest they unintended consequences.

    It’s almost always best to leave the market, where it’s sufficiently competitive, to determine the right products and prices, especially in the retail space. If competition hasn’t led to the right outcomes, then it’s best to address this through policy interventions rather than telling operators how to design their products or, worse, what prices they can charge (which, worryingly, may be next on Icasa’s menu of planned interventions).

    That being said, it’s clear the operators themselves haven’t done enough to address the affordability gap. They have a serious PR problem, which is only going to get worse if they come out all guns blazing at Icasa. If they don’t come to the party with better deals, and find ways of making it more affordable for the poor to be included in the digital economy, they run the risk of regulatory oversight that could make their lives very difficult indeed.  — (c) 2017 NewsCentral Media

    • Duncan McLeod is editor of TechCentral


    Cell C Duncan McLeod Icasa MTN Telkom top Vodacom
    Subscribe to TechCentral Subscribe to TechCentral
    Share. Facebook Twitter LinkedIn WhatsApp Telegram Email Copy Link
    Previous ArticleWorries grow over Tencent, Alibaba valuations
    Next Article Mashaba plans ‘shock and awe’ for Jo’burg CBD

    Related Posts

    TechCentral's South African Newsmakers of 2025

    TechCentral’s South African Newsmakers of 2025

    18 December 2025
    Telecoms industry backs Malatsi policy directive, warns on execution - ACT CEO Nomvuyiso Batyi

    Telecoms industry backs Malatsi policy directive, warns on execution

    17 December 2025
    MTN Zambia launches world's first 4G cloud smartphone solution - Huawei

    MTN Zambia launches world’s first 4G cloud smartphone solution

    17 December 2025
    Company News
    Why TechCentral is the most powerful platform for reaching IT decision makers

    Why TechCentral is the most powerful platform for reaching IT decision makers

    17 December 2025
    Business trends to watch in 2026 - Domains.co.za

    Business trends to watch in 2026

    17 December 2025
    MTN Zambia launches world's first 4G cloud smartphone solution - Huawei

    MTN Zambia launches world’s first 4G cloud smartphone solution

    17 December 2025
    Opinion
    Netflix, Warner Bros deal raises fresh headaches for MultiChoice - Duncan McLeod

    Netflix, Warner Bros deal raises fresh headaches for MultiChoice

    5 December 2025
    BIN scans, DDoS and the next cybercrime wave hitting South Africa's banks - Entersekt Gerhard Oosthuizen

    BIN scans, DDoS and the next cybercrime wave hitting South Africa’s banks

    3 December 2025
    Your data, your hardware: the DIY AI revolution is coming - Duncan McLeod

    Your data, your hardware: the DIY AI revolution is coming

    20 November 2025

    Subscribe to Updates

    Get the best South African technology news and analysis delivered to your e-mail inbox every morning.

    Latest Posts
    Digital authoritarianism grows as African states normalise internet blackouts

    Digital authoritarianism grows as African states normalise internet blackouts

    19 December 2025
    Starlink satellite anomaly creates debris in rare orbital mishap

    Starlink satellite anomaly creates debris in rare orbital mishap

    19 December 2025
    Trump space order puts the moon back at centre of US, China rivalry - US President Donald Trump

    Trump space order puts the moon back at centre of US, China rivalry

    19 December 2025
    TechCentral's South African Newsmakers of 2025

    TechCentral’s South African Newsmakers of 2025

    18 December 2025
    © 2009 - 2025 NewsCentral Media
    • Cookie policy (ZA)
    • TechCentral – privacy and Popia

    Type above and press Enter to search. Press Esc to cancel.

    Manage consent

    TechCentral uses cookies to enhance its offerings. Consenting to these technologies allows us to serve you better. Not consenting or withdrawing consent may adversely affect certain features and functions of the website.

    Functional Always active
    The technical storage or access is strictly necessary for the legitimate purpose of enabling the use of a specific service explicitly requested by the subscriber or user, or for the sole purpose of carrying out the transmission of a communication over an electronic communications network.
    Preferences
    The technical storage or access is necessary for the legitimate purpose of storing preferences that are not requested by the subscriber or user.
    Statistics
    The technical storage or access that is used exclusively for statistical purposes. The technical storage or access that is used exclusively for anonymous statistical purposes. Without a subpoena, voluntary compliance on the part of your Internet Service Provider, or additional records from a third party, information stored or retrieved for this purpose alone cannot usually be used to identify you.
    Marketing
    The technical storage or access is required to create user profiles to send advertising, or to track the user on a website or across several websites for similar marketing purposes.
    • Manage options
    • Manage services
    • Manage {vendor_count} vendors
    • Read more about these purposes
    View preferences
    • {title}
    • {title}
    • {title}