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Millions face RICA cut-off

Nicola Mawson
By Nicola Mawson, Contributor.
Johannesburg, 25 May 2011

Around eight million South Africans have yet to comply with the SIM card registration law.

Contract subscribers who don't comply, will be cut off from the end of next month, but will still be required to pay their monthly bills.

SA introduced the Regulation of Interception of Communications and Provision of Communication-Related Information Act (RICA) in the middle of 2009. The law is meant to cut down on crimes committed using cellphones.

Anyone who owns a SIM card must register it with their service provider and hand in a copy of their ID document and proof of residence. South Africans initially had until last December to comply or be cut off, but this deadline was extended to the end of next month.

Despite the millions that have been spent by cellphone companies in persuading subscribers to comply, many South Africans are leaving registration to the last minute, and could be cut off from the network on 1 July.

Contract customers who fail to register would still have to pay monthly subscription fees, but would not be able to use their phones, warn cellular companies. By law, mobile operators have to cut off unregistered subscribers, but the cellphone contract remains binding.

Legally stuck

Vodacom, SA's largest cellular provider, has so far registered about 85% of its 26.5 million subscribers, which means about four million face being cut off by the end of next month.

Richard Boorman, executive head of media relations, says the company has spent “in the tens of millions of rands” on getting subscribers registered and advertising the legislation.

“A key concern is that we'll be forced to cut off contract customers who haven't registered, but they will still be liable for their monthly bill,” says Boorman. He explains this is a legal requirement and the cellphone companies don't have an option.

However, subscribers have a window of opportunity to RICA after the deadline and will keep their number. Prepaid customers have a six-month grace period to RICA after they have been cut off from the network, says Boorman.

Postpaid customers can redeem their connection to the network as long as their contracts are still in effect, says Boorman.

MTN SA's chief corporate service officer, Robert Madzonga, says the company has registered about 80% of its client base. MTN had 19.2 million subscribers in SA at the end of March, which means that about 3.8 million SIM cards have yet to be registered.

Madzonga is unable to pre-empt how many of these subscribers may be cut off, as the process is still ongoing. So far, MTN has spent “millions” on its RICA campaign and expects to spend more in the run up to the end of next month.

Rush, rush

Cell C's spokesman Sean van der Westhuizen expects many subscribers to rush to comply the day before and the day after cut-off. He says Cell C has put systems in place to manage the volumes.

Van der Westhuizen says the mobile operator has registered about 94% of its database. “This process has cost millions to date and continues to cost the cellular companies high amounts,” he adds. The unlisted company didn't disclose its current subscriber numbers.

Virgin Mobile COO Zak van de Merwe says the operator has also registered more than 80% of its subscriber base. He says Virgin Mobile has been sending SMSes to subscribers who haven't registered in a bid to get them to comply.

Van de Merwe expects a spike in the number of customers registering just before and after the deadline. “A small percentage, about 5%, of active customers will unfortunately be cut off until they finally do RICA,” he predicts.

So far, RICA has cost the unlisted company millions, and will cost millions more, says Van de Merwe.

Telkom's mobile arm, 8ta, came to market after RICA came into effect, meaning all its subscribers are registered when they sign up.

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