So it seems that in the interests of consumer protection, the Independent Communications Authority of SA (ICASA) is looking at preventing operators from handing out free cellphones to customers who opt for postpaid contracts.
Personally, I cannot for the life of me see how putting an end to handset subsidies can be good for consumers, since they will now be required to shell out additional cash to purchase a handset.
Yes, call costs will supposedly come down if subsidised phones are no longer allowed, although this is also something that I will believe when I see it - after all, how often do prices ever come down?
According to ICASA`s reasoning, handset subsidies may increase the barrier to entry into the market by new players, in that customers cannot easily change service providers where the subsidies exist.
The regulator is also worried that these subsidies could be used as an inducement for customers not to change operators, and could therefore also negatively affect the uptake of number portability in the industry.
Now I don`t know about ICASA, but I am sure that everyone who takes out a contract with an operator is aware they are signing on with that service provider for a dedicated length of time, and the fact that they can get one of the latest handsets as part of the bargain is exactly what induces people to go for the postpaid rather than the prepaid option.
I am of the opinion that if it ain`t broken, don`t try and fix it, and this is most certainly a case of the regulator messing around with something that has worked for the past 10 years.
Rodney Weidemann, telecoms editor, ITWeb
The whole point of a contract is that it is something entered into by two parties that are both aware of the terms and conditions thereof, so I cannot see how the subsidised phones should be an issue.
After all, banks give away free toasters (or shotguns, if it`s the US) to entice customers to open an account with them, car dealers offer a free radio or CD player to convince clients to purchase their brand of vehicle, so why should the cell operators not be allowed to offer some form of inducement too?
I do understand the authority`s trepidation as far as number portability goes, as I also like the idea of this concept. I am extremely partial to the idea of being able to keep the number I have always used, whichever operator I choose to place my business with.
However, I am even more fond of the upgraded phone I get each time I take out a new contract and would hate to have to shell out anywhere between R400 and R1 000 for it, should ICASA`s proposals come into effect.
Number portability shouldn`t be a concern, as there will still be quite an uptake, since customers that have been unhappy with an operator`s performance will simply retain their old number, but take out their new contract with a different provider - most likely the one that offers the best subsidised handset.
I am of the opinion that if it ain`t broken, don`t try and fix it, and this is most certainly a case of the regulator messing around with something that has worked for the past 10 years.
Still, at least ICASA is honest about its intentions in this regard, and honesty is not something that comes easily to the average South African cellphone user.
How else - other than bald-faced lying - do you explain the fact that in a recent mobile survey, 70% of those who claimed to use their phones while driving said this was because they used a hands-free kit.
I reckon it`s more like 70% of mobile users who do not use hands-free kits while trying to drive and talk at the same time - but I suppose that`s the South African way, isn`t it?