Subscribe

ICASA tip-toes around telcos

Candice Jones
By Candice Jones, ITWeb online telecoms editor
Johannesburg, 06 Feb 2009

The Independent Communications Authority of SA's (ICASA's) long-awaited handset subsidy draft regulations will only be available from the end of the month.

This will be the second set of draft regulations that the authority will publish, the first of which would have been implemented in August last year. The move to have the regulations re-drafted seems to be the result of ICASA dodging possible backlash from the top mobile companies.

In a statement released by the authority this morning, it said: “The authority would be issuing draft regulations on the handset subsidy for further consultation on the subject matter on 27 February 2009.”

Mobile dreams

The first draft of the regulations was published in June last year and would have come into effect from August. The move was good news for consumers since it would have protected them from long term lock-ins and hidden cellphone costs.

Subscribers could select how long their cellphone contracts would be, ranging from six months to two years (currently the standard contract period).

The regulations would also have forced providers to show clearly how much of a cellphone subsidy remains on any given contract, as well as the cost consumers would need to pay if they decided to opt out of an existing contract. Both stipulations were supposed to be shown on a customer's bill at the end of every month.

However, consumers' delight was short lived. In response to the looming implementation date in August, Vodacom approached the courts to obtain an urgent interdict against the regulations. ICASA then decided to postpone the implementation of the regulations.

Not to be

At the time, ICASA promised the legal action from Vodacom would not prevent the authority from implementing the much-needed regulations. “Operators should, in the meantime, be gearing their systems for implementation by 1 February 2009,” it noted.

ICASA this morning reneged on that promise and pulled the initial set of regulations entirely. In this morning's statement, the regulator said: “Due to various issues raised by the operators on the implementation process and the pending legal challenge by Vodacom, the authority has decided to withdraw the handset subsidy regulations published on the 17 June 2008.”

The authority will publish the new draft regulations on 27 February and will open the matter to discussion.

Related stories:
The big cellular rip-off
Cell spam becomes viral
Gaming sells on cells
Say goodbye to long-term lock-ins
Long-term lock-ins here to stay?

Share