TechCentralTechCentral
    Facebook Twitter YouTube LinkedIn
    Facebook Twitter LinkedIn YouTube
    TechCentralTechCentral
    NEWSLETTER
    • News

      SA coal giant Seriti Resources in pivot to renewables

      15 August 2022

      Tencent, TikTok share details of prized algorithms with Beijing

      15 August 2022

      Institutions eye crypto but retail investors remain nervous

      15 August 2022

      Fixing SA’s power crisis is not complex: it simply takes the will to do better

      12 August 2022

      Consortium makes unsolicited bid for state’s 40% stake in Telkom

      12 August 2022
    • World

      Tencent woes mount, even after $560-billion selloff

      12 August 2022

      Huawei just booked its first sales rise since US blacklisting

      12 August 2022

      Apple remains upbeat about iPhone sales even as Android world suffers

      12 August 2022

      Ether at two-month high as upgrade to blockchain passes major test

      12 August 2022

      Gaming industry’s fortunes fade as pandemic ends

      11 August 2022
    • In-depth

      African unicorn Flutterwave battles fires on multiple fronts

      11 August 2022

      The length of Earth’s days has been increasing – and no one knows why

      7 August 2022

      As Facebook fades, the Mad Men of advertising stage a comeback

      2 August 2022

      Crypto breaks the rules. That’s the point

      27 July 2022

      E-mail scams are getting chillingly personal

      17 July 2022
    • Podcasts

      Qush on infosec: why prevention is always better than cure

      11 August 2022

      e4’s Adri Führi on encouraging more women into tech careers

      10 August 2022

      How South Africa can woo more women into tech

      4 August 2022

      Book and check-in via WhatsApp? FlySafair is on it

      28 July 2022

      Interview: Why Dell’s next-gen PowerEdge servers change the game

      28 July 2022
    • Opinion

      No reason South Africa should have a shortage of electricity: Ramaphosa

      11 July 2022

      Ntshavheni’s bias against the private sector

      8 July 2022

      South Africa can no longer rely on Eskom alone

      4 July 2022

      Has South Africa’s advertising industry lost its way?

      21 June 2022

      Rob Lith: What Icasa’s spectrum auction means for SA companies

      13 June 2022
    • Company Hubs
      • 1-grid
      • Altron Document Solutions
      • Amplitude
      • Atvance Intellect
      • Axiz
      • BOATech
      • CallMiner
      • Digital Generation
      • E4
      • ESET
      • Euphoria Telecom
      • IBM
      • Kyocera Document Solutions
      • Microsoft
      • Nutanix
      • One Trust
      • Pinnacle
      • Skybox Security
      • SkyWire
      • Tarsus on Demand
      • Videri Digital
      • Zendesk
    • Sections
      • Banking
      • Broadcasting and Media
      • Cloud computing
      • Consumer electronics
      • Cryptocurrencies
      • Education and skills
      • Energy
      • Fintech
      • Information security
      • Internet and connectivity
      • Internet of Things
      • Investment
      • IT services
      • Motoring and transport
      • Public sector
      • Science
      • Social media
      • Talent and leadership
      • Telecoms
    • Advertise
    TechCentralTechCentral
    Home»In-depth»Operators face showdown at the consumer corral

    Operators face showdown at the consumer corral

    In-depth By Editor15 September 2011
    Facebook Twitter LinkedIn WhatsApp Telegram Email
    Mamodupi Mohlala

    The National Consumer Commission, established in April to enforce the new Consumer Protection Act, has received objections from all of SA’s big operators, with the exception of Neotel, to the compliance notices it served on them demanding they make the terms of their contracts clearer to consumers.

    Head of the commission, Mamodupi Mohlala, initially set a deadline of mid-September for operators to comply with its demands for transparency in advertising, non-automatic renewal of contracts and the ability for consumers to cancel contracts by giving 20 days’ notice, as stipulated by the act. To date, only Neotel has agreed to amend its contracts.

    Vodacom recently expressed its opposition to the compliance notices, claiming it was already in talks with the commission regarding amendments to its contracts and advertising. The company’s chief officer for corporate affairs, Portia Maurice, said recently the company was “surprised” to receive a compliance notice because it “already had an amendment process underway and had agreed with [the commission to] an implementation date of 31 October”.

    Mohlala says the commission received objection notices from Cell C and MTN on Wednesday, and that it expected objections from Telkom and its mobile arm, 8ta, to follow.

    The commission has been arguing with Vodacom about issues of quality of service for some time. “In terms of section 54 of the act, which deals with issues of quality of service, a consumer is entitled to receive goods or services at levels to which that consumer is accustomed, or at the levels as stipulated in the consumer’s contract,” Mohlala tells TechCentral.

    She says the issue is of growing relevance in light of Vodacom’s recent network failure and the furore earlier this week regarding its announcement that it would be throttling data speeds of heavy users of the BlackBerry Internet Service.

    Vodacom has since backtracked on its stated plans, with group CEO Pieter Uys blaming miscommunication by its corporate communications department.

    Vodacom Group CEO Pieter Uys

    “In terms of these compliance notices, we as the commission are saying there must be some guarantees with regards to quality of service. Currently, as the operators’ contracts stand, there are no guarantees,” says Mohlala.

    She says consumers are expected to “hold up their end of the agreements” by paying for services and paying additional fees in the case of premium services, but there “are no reciprocal guarantees from network operators around quality of service”.

    The consumer act specifies that in the event that an operator does not meet the “particular quality-of-service levels that are outlined in a contact”, then the it “must offer the affected consumer a remedy”, she says. If not, “the consumer is entitled to a refund to the extent that they have not received the guaranteed services or quality of service. Consumers must be compensated when operators don’t meet their obligations.”

    According to Mohlala, operators have “exclusive control over issues of network coverage and quality of service” and therefore need to give “some sort of commitment to consumers who are paying a lot for those services”.

    She says the compliance notices served on the operators also deal with the provisions of section 14 of the act. This refers to the bundling of services. The act says the “bundling of services is not prohibited, but operators must clearly show the benefits of a bundled service to consumers. Over and above that, they must show the financial benefits to the consumer.”

    Under the act, operators are obliged to make explicit and explain “in simple terms” what the unbundled costs of a service would be when compared to the bundled offering.

    “The obvious argument operators are going to put forward is that they don’t have absolute control over the services or over the full value chain of bundled services,” she says. “But we are saying to some extent, in relation to the product and services that they do offer, they have exclusive control over airtime [and] they have a responsibility to demonstrate the benefits of the various elements of the bundled service.”

    Mothibi Ramusi, Cell C’s executive head of regulatory affairs, says the company objected to notice it received because it believes there was “no merit in issuing a compliance notice as Cell C’s subscriber agreement is compliant with the act”.

    Vodacom’s Maurice says the operator intends to “address the matter” of the compliance notice it received “directly with the commission”.

    And Robert Madzonga, chief corporate services officer at MTN SA, says the compliance notice called for it to “adopt wording proposed by the commission” in its contracts and that it has “formally objected to the notice on various legitimate grounds”.

    “MTN has asked the [national consumer] tribunal to set the notice aside,” Madzonga says. “Amongst other things, MTN contends the notice was issued at a time when the subscriber agreement was in fact compliant; that the notice is based on an outdated and incorrect version of the subscriber agreement; and that the wording proposed in the notice is inappropriate.”

    He says that should the tribunal refuse to set aside the notice, “MTN has asked that the terms of the notice ought to be varied so as to allow a proper timeframe for compliance”.  — Craig Wilson, TechCentral

    • Subscribe to our free daily newsletter
    • Follow us on Twitter or on Facebook
    • Visit our sister website, SportsCentral (still in beta)
    8ta Cell C Consumer Protection Act Mamodupi Mohlala Mothibi Ramusi MTN National Consumer Commission Neotel Pieter Uys Robert Madzonga Telkom Vodacom
    Share. Facebook Twitter LinkedIn WhatsApp Telegram Email
    Previous ArticleFor operators, sharing is caring, says KPMG
    Next Article Why SA’s tech start-ups should look to Africa

    Related Posts

    5G your life for faster, more reliable home or mobile connectivity

    15 August 2022

    Consortium makes unsolicited bid for state’s 40% stake in Telkom

    12 August 2022

    Telkom says MTN talks remain on track

    12 August 2022
    Add A Comment

    Comments are closed.

    Promoted

    5G your life for faster, more reliable home or mobile connectivity

    15 August 2022

    World’s fastest compact firewall for hyperscale data centres, 5G networks

    15 August 2022

    Get your brand in front of TechCentral’s amazing audience

    12 August 2022
    Opinion

    No reason South Africa should have a shortage of electricity: Ramaphosa

    11 July 2022

    Ntshavheni’s bias against the private sector

    8 July 2022

    South Africa can no longer rely on Eskom alone

    4 July 2022

    Subscribe to Updates

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

    © 2009 - 2022 NewsCentral Media

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