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
      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
      SpaceX IPO set to be two times oversubscribed

      Everyone wants a piece of SpaceX

      7 June 2026
      OpenAI plans ChatGPT 'super app'

      OpenAI plans ChatGPT ‘super app’

      7 June 2026
      Cabinet hands the Post Office a board, but not a bailout

      Cabinet hands the Post Office a board, but not a bailout

      5 June 2026
      In South Africa, the bundle is the new battleground

      In South Africa, the bundle is the new battleground

      5 June 2026
    • World
      Meta takes on OpenAI and Anthropic in enterprise AI

      Meta takes on OpenAI and Anthropic in enterprise AI

      4 June 2026
      AI demand sparks 'chipflation' warning

      AI demand sparks ‘chipflation’ warning

      4 June 2026
      Astronomers discover exoplanets with magnetic fields

      Strange winds reveal magnetic fields on distant ‘hot Jupiters’

      2 June 2026
      AI giant Anthropic files for landmark US listing

      AI giant Anthropic files for landmark US listing

      1 June 2026
      Dell guns for MacBook Neo with low-cost laptop

      Dell guns for MacBook Neo with low-cost laptop

      1 June 2026
    • In-depth
      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
      The biggest untapped EV market on Earth is hiding in plain sight

      The biggest untapped EV market on Earth is hiding in plain sight

      1 April 2026
      AI, cybersecurity power standout year for Datatec - Jens Montanana

      The R16-billion tech giant hiding in plain sight

      26 March 2026
    • TCS
      TCS | Charge's R1.8-billion bet on an off-grid EV future - Charge chairman Joubert Roux

      TCS | Charge’s R1.8-billion bet on an off-grid EV future

      18 May 2026
      TCS+ | The Up&Up Group on the hidden cost of AI - Jason Harrison

      TCS+ | The Up&Up Group on the hidden cost of AI

      13 May 2026
      Michael Rossouw

      TCS+ | The retirement decision most South Africans get wrong

      6 May 2026
      TCS | The Cape Town start-up listening for TB with AI - Braden van Breda

      TCS | The Cape Town start-up listening for TB with AI

      4 May 2026

      TCS+ | ‘The ISP for ISPs’: Vox’s shift to wholesale aggregator

      20 April 2026
    • Opinion

      Clashing judgments leave South Africa’s crypto law unsettled

      2 June 2026
      The author, Pambos Soteriades

      The trap inside South Africa’s banking MVNO boom

      1 June 2026
      The hidden cost of social media age bans is everyone's privacy - Petrus Potgieter

      The hidden cost of social media age bans is everyone’s privacy

      29 May 2026
      Treasury's crypto crackdown is a betrayal of Mandela's promise - Duncan McLeod

      Treasury’s crypto crackdown is a betrayal of Mandela’s promise

      22 May 2026
      South Africa is sleepwalking into another AI policy failure - Celeste Labuschagne

      South Africa is sleepwalking into another AI policy failure

      20 May 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
      • Motoring
      • Policy and regulation
      • Public sector
      • Retail and e-commerce
      • Satellite communications
      • Science
      • SMEs and start-ups
      • Social media
      • Talent and leadership
      • Telecoms
    • 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

    In South Africa, the bundle is the new battleground

    In South Africa, the bundle is the new battleground

    5 June 2026
    The real cloud challenge isn't adoption – it's doing it well

    The real cloud challenge isn’t adoption – it’s doing it well

    5 June 2026
    The MVNO trap deepens as the battle moves to data

    The MVNO trap deepens as the battle moves to data

    4 June 2026
    Company News
    The real hurdle for South Africa's AI voicebots isn't the AI - 1Stream

    The real hurdle for South Africa’s AI voicebots isn’t the AI

    5 June 2026
    The real cloud challenge isn't adoption – it's doing it well

    The real cloud challenge isn’t adoption – it’s doing it well

    5 June 2026
    Payments Live returns to Johannesburg for 2nd edition

    Payments Live returns to Johannesburg for 2nd edition

    4 June 2026
    Opinion

    Clashing judgments leave South Africa’s crypto law unsettled

    2 June 2026
    The author, Pambos Soteriades

    The trap inside South Africa’s banking MVNO boom

    1 June 2026
    The hidden cost of social media age bans is everyone's privacy - Petrus Potgieter

    The hidden cost of social media age bans is everyone’s privacy

    29 May 2026

    Subscribe to Updates

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

    Latest Posts
    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
    SpaceX IPO set to be two times oversubscribed

    Everyone wants a piece of SpaceX

    7 June 2026
    OpenAI plans ChatGPT 'super app'

    OpenAI plans ChatGPT ‘super app’

    7 June 2026
    Cabinet hands the Post Office a board, but not a bailout

    Cabinet hands the Post Office a board, but not a bailout

    5 June 2026
    © 2009 - 2026 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}