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
      China nets a falling rocket in reusability race with SpaceX

      China nets a falling rocket in reusability race with SpaceX

      10 July 2026
      Battlefield tech could save lives on South Africa's roads - Dithoto Modungwa

      Battlefield tech could save lives on South Africa’s roads

      10 July 2026
      Customers prefer ChatGPT to your company's AI chatbot

      Customers prefer ChatGPT to your company’s AI chatbot

      10 July 2026
      South Africans warm to AI doing their shopping: DHL

      South Africans warm to AI doing their shopping: DHL

      10 July 2026
      OpenAI debuts ChatGPT Work - and GPT-5.6 - in enterprise push

      OpenAI debuts ChatGPT Work – and GPT-5.6 – in enterprise push

      10 July 2026
    • World
      Swingeing jobs cuts at Microsoft's Xbox unit

      Swingeing jobs cuts at Microsoft’s Xbox unit

      6 July 2026

      SK Hynix ends Samsung’s 26-year reign at the top

      22 June 2026
      Google on the hook for what its AI tells users, court rules

      Google on the hook for what its AI tells users, court rules

      15 June 2026
      How Russians juggle VPNs to outwit the Kremlin

      How Russians juggle VPNs to outwit the Kremlin

      15 June 2026
      Amazon CEO flagged Anthropic AI risks to Washington - Andy Jassy

      Amazon CEO flagged Anthropic AI risks to Washington

      14 June 2026
    • In-depth
      AI boom sparks rally, frenzy and fear

      AI boom sparks rally, frenzy and fear

      11 June 2026
      Every plug-in hybrid on sale in South Africa, ranked by price - Lamborghini Temerario

      Every plug-in hybrid on sale in South Africa, ranked by price

      7 June 2026
      What Wi-Fi 8 will mean for wireless networks

      What Wi-Fi 8 will mean for wireless networks

      1 June 2026
      Alfa's electric rebel - Alfa Romeo Junior Elettrica Veloce

      Alfa’s electric rebel

      29 April 2026
      Africa switches on as Europe dims the lights

      Africa switches on as Europe dims the lights

      9 April 2026
    • TCS
      Watts & Wheels S1E7: 'Ferrari's EV breaks the internet'

      Watts & Wheels S1E7: ‘Ferrari’s EV breaks the internet’

      8 July 2026
      TCS+ | How Tracker is turning vehicle data into business strategy - Silvia Schollenberger

      TCS+ | How Tracker is turning vehicle data into business strategy

      1 July 2026
      TCS+ | IBM Bob: an AI-powered 'development partner' for the enterprise - David Spurway

      TCS+ | IBM Bob: an AI-powered development partner for the enterprise

      30 June 2026
      Watts & Wheels S1E6: 'A flawless Alfa and a bakkie that divides'

      Watts & Wheels S1E6: ‘A flawless Alfa and a bakkie that divides’

      17 June 2026
      Watts & Wheels S1E6: 'A flawless Alfa and a bakkie that divides'

      Watts & Wheels S1E5: ‘A Bentley of the bush and a car that swims’

      8 June 2026
    • Opinion
      The author, Fanie van Rooyen

      South Africa can still catch the AI wave – here’s how

      7 July 2026
      The author, Fanie van Rooyen

      The AI utopia South Africa can’t afford

      1 July 2026
      The author, Jannie van Zyl

      South Africa’s broadband future is being decided in orbit, not in Pretoria

      30 June 2026
      The author, Pambos Soteriades

      The pivot South Africa’s MVNOs cannot afford to miss

      23 June 2026
      Brazil's online gambling crackdown is a lesson for South Africa

      Brazil’s online gambling crackdown is a lesson for South Africa

      22 June 2026
    • Company Hubs
      • 1Stream
      • Africa Data Centres
      • AfriGIS
      • Altron Digital Business
      • Altron Document Solutions
      • Altron Group
      • Arctic Wolf
      • Ascent Technology
      • AvertITD
      • BBD
      • Braintree
      • CallMiner
      • CambriLearn
      • CM Telecom
      • Contactable
      • CYBER1 Solutions
      • Digicloud Africa
      • Digimune
      • Domains.co.za
      • ESET
      • Euphoria Telecom
      • HOSTAFRICA
      • Incredible Business
      • iONLINE
      • IQbusiness
      • Iris Network Systems
      • Kaspersky
      • LSD Open
      • Mitel
      • NEC XON
      • Netstar
      • Network Platforms
      • Next DLP
      • Ovations
      • Paracon
      • Paratus
      • Q-KON
      • SevenC
      • SkyWire
      • Solid8 Technologies
      • Telit Cinterion
      • Telviva
      • 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
      • HealthTech
      • Information security
      • Internet and connectivity
      • Internet of Things
      • Investment
      • IT services
      • Lifestyle
      • Policy and regulation
      • Public sector
      • Retail and e-commerce
      • Satellite communications
      • Science
      • SMEs and start-ups
      • Social media
      • Talent and leadership
      • Telecoms
      • Watts & Wheels
    • Events
    • Advertise
    TechCentralTechCentral
    Home » In-depth » Act would end ‘free’ phone bonanza

    Act would end ‘free’ phone bonanza

    By Editor19 October 2010
    Twitter LinkedIn Facebook WhatsApp Email Telegram Copy Link
    News Alerts
    WhatsApp
    Lucien Pierce

    Mobile operators may be forced to stop subsidising handsets next year when the Consumer Protection Act (CPA) takes effect in March.

    The department of trade & industry has been working on the legislation for years and it’s expected to change fundamentally the way business is done in SA.

    Telecommunications operators are not excluded from its net.

    Alongside the law, trade & industry has drafted regulations that could spell the end of free mobile handsets on contract packages.

    The regulations have not yet been finalised and there is still scope for them to be changed.

    However, in its current draft the regulations state that consumers who cancel contracts will not have to pay more than 10% of the of the total contract as a cancellation penalty.

    SA’s cellphone industry was built on the back of handset subsidies. Many attribute the industry’s success to precisely this practice.

    Operators subsidise phones aggressively on contracts, with consumers paying off the value of the device through the period of the contract, usual 24 months.

    Operators may have to stop subsidising handsets like Apple iPhone 4

    Nick Altini, director of competition at Cliffe Dekker Hofmeyr, says if consumers cancel after two or three months, the best the operators can hope for under the CPA is to have the phone returned.

    But, he says, there is “no real market for second-hand phones”.

    Altini says changes could still be made by the time the draft regulations are gazetted. Trade & industry has received input from operators.

    Operators have decided to keep the peace with the department, saying only that they will do what the law requires of them.

    However, a legal source at one operator says the clause will not apply to cellular contracts and subsidised handsets, saying contracts can only be terminated if they are deemed “unreasonable”.

    Altini says another concern for mobile operators is a stipulation that allows customers to demand a refund on a faulty product. At the moment, customers have six weeks to return a product they are not happy with and be given a replacement device.

    However, the CPA allows customers three months to return a product and demand a replacement. This will almost certainly result in a higher rate of returns.

    The CPA will will also affect the sale of prepaid vouchers, says Lucien Pierce, partner at Phukubje Pierce Masithela Attorneys.

    Pierce says the act will force operators to roll over airtime and data for at least three years. Though good news for consumers, it will cause a headache for operators, which have to create network capacity for every minute of airtime they sell.

    But operators will be required to cut off inactive users after seven months, in conflict with keeping airtime available for three years.  — Candice Jones, TechCentral

    • Subscribe to our free daily newsletter
    • Follow us on Twitter or on Facebook
    Follow TechCentral on Google News Add TechCentral as your preferred source on Google


    Cell C Cliffe Decker Hofmeyr Lucien Pierce MTN Nick Altini Phukubje Pierce Masithela Vodacom
    WhatsApp YouTube
    Share. Facebook Twitter LinkedIn WhatsApp Telegram Email Copy Link
    Previous ArticleCasualties of war
    Next Article Kelly hits back over BEE claims

    Related Posts

    The fragile joint in the Capitec machine

    The fragile joint in the Capitec machine

    9 July 2026
    Safaricom shareholders to vote on Vodacom's CEO powers

    Safaricom shareholders to vote on Vodacom’s CEO powers

    8 July 2026
    'Construction mafia and spies': alarm over new Icasa rules

    ‘Construction mafia and spies’: alarm over new Icasa rules

    7 July 2026
    Company News
    Rain supercharges 5G with Huawei

    Rain supercharges 5G with Huawei

    10 July 2026
    Africa's data centres: AI, edge computing and new energy demands - Vertiv OADC Open Access Data Centres

    Africa’s data centres: AI, edge computing and new energy demands

    9 July 2026
    The best way to automate customer engagement using AI and WhatsApp - CM.com

    The best way to automate customer engagement using AI and WhatsApp

    9 July 2026
    Opinion
    The author, Fanie van Rooyen

    South Africa can still catch the AI wave – here’s how

    7 July 2026
    The author, Fanie van Rooyen

    The AI utopia South Africa can’t afford

    1 July 2026
    The author, Jannie van Zyl

    South Africa’s broadband future is being decided in orbit, not in Pretoria

    30 June 2026

    Subscribe to Updates

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

    Latest Posts
    China nets a falling rocket in reusability race with SpaceX

    China nets a falling rocket in reusability race with SpaceX

    10 July 2026
    Battlefield tech could save lives on South Africa's roads - Dithoto Modungwa

    Battlefield tech could save lives on South Africa’s roads

    10 July 2026
    Customers prefer ChatGPT to your company's AI chatbot

    Customers prefer ChatGPT to your company’s AI chatbot

    10 July 2026
    Rain supercharges 5G with Huawei

    Rain supercharges 5G with Huawei

    10 July 2026
    © 2009 - 2026 NewsCentral Media
    Built and maintained by Chronon
    • 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}