All ready for mass subscriber registration

Johannesburg, 30 Jun 2009

Despite the tough task ahead, cellphone operators and major retailers maintain they are prepared to implement the new prepaid cellular legal requirements, starting tomorrow.

Operators have to register customers and will be held liable if a customer sells, or provides a SIM card to someone else.

The implementation of the Regulation of Interception of Communications and Provision of Communication-Related Information Act (RICA) requires all new customers to be registered before they can be activated on a cellular network, a task the operators initially baulked at.

The state has already cut the operators much slack, extending the compliance deadline and issuing a new set of changes containing watered-down registration requirements.

The announcement of RICA, in 2005, caused outrage among the country's mobile operators, which lashed out at government for trying to pass legislation that would be challenging to implement.

Vodacom, MTN and Cell C complained that not only would the registration of every single cellular subscriber cost millions of rands, it would also be virtually impossible to achieve. The telecoms operators stated users in remote areas, often with no formal residential addresses, would slip through the cracks. Furthermore, the mobile providers expressed doubt that RICA would actually achieve its intended goal of combating organised crime.

That was then

Shortly after the Act was announced, then MTN SA MD Maanda Manyatshe spoke out against the legislation, saying new telecoms laws have noble objective, but implementation would be challenging. Manyatshe said the regulations would increase the cost of doing business for mobile operators.

He noted registering subscribers would also impact on retailers, which gain the added responsibility of verifying the identity of the consumer when a SIM card is purchased. Informal traders also stand to lose the business of selling SIM cards, he explained at the time.

In May 2006, former Vodacom CEO Alan Knott-Craig also slammed RICA, questioning its effectiveness in fighting crime and the implementation cost.

“Although Vodacom is willing to bear this cost if the law requires it, it is practically impossible to obtain the names, addresses and ID numbers of all prepaid customers and to verify this information.”

He further stated it is “highly unlikely that the registration of prepaid cellphone customers will bring down the crime rate as it is easy for criminals to get a SIM card from a neighbouring country, commit the crime and throw away the phone - without ever registering it”.

This is now

But now it seems it's all systems go for 1 July, despite the legislation stipulating that customers will have to be registered or disconnected, making operators liable for the process with the possibility of large fines.

All three operators - Vodacom, Cell C and MTN - have brushed off any worries.

“Due to the simplicity of the registration process, we do not anticipate any fluctuation in prepaid sales. This legislation simply means business as usual; nothing changes,” says Shenanda Janse van Rensburg, executive head, corporate communications at Cell C.

While deadlines will only be announced by the Department of Justice today, the Act states existing cellphone numbers that are active on any cellular network will have up to 18 months from the effective date to register their cellphones. Existing numbers, which are not registered at the end of the period, will be disconnected from the network, until they are registered.

While MTN does not state whether it is concerned about any dips in prepaid sales, the network operator notes “it will proactively communicate with its customers to encourage them to register before the cut-off date”.

Vodacom group chief communications officer Dot Field says the operator has invested a lot of time, money and resources to ensure customers are able to register their SIM cards.

“Systems have been installed for the effective implementation of this legislation and Vodacom is undertaking an extensive trade training programme on how to use these systems. A number of our channels are already ready to register SIM cards and other outlets will be ready shortly.”

The Act requires face-to-face verification by registered RICA officers who will confirm the name, ID, MSISDN (cellphone number) and a single residential address. Those subscribers who are not able to provide a utility bill, as they live in informal settlements, can provide a letter and/or affidavit from a school, church or retail store where they receive their post.

Ready to go

The Department of Justice has stated the majority of the Act was implemented in 2005, only two sections were amended and operators should be prepared.

MTN says it has trained its customer-facing agents to be authorised RICA officers, and is providing equipment and has trained resellers on the process and requirements of the Act, enabling them to carry out the registration process.

Janse van Rensburg notes Cell C has made the necessary changes to its systems.

“Customers are accordingly able to register at most stores where starter packs are sold and this footprint will expand until all stores are included. Cell C intends to make the RICA process as convenient as possible for its subscribers, and will initially have RICA officers at selected points of sale and increase this to finally include all of its channels.”

Field notes Vodacom will educate consumers on the new requirements.

“Vodacom will communicate with its customers via SMS, voicemail and other means to ensure they are aware of the legislation and the requirement to register. The telecoms industry will also launch an effective media campaign to educate customers on RICA. This starts in July and includes leaflets in store, print, radio and TV.”

Retail ready

Major retailers say they are prepared for the process.

While not stating whether it expects to experience slowing prepaid sales, Pick n Pay says it will not stop selling SIM cards or airtime in its stores.

“We don't believe the demand for either of these will drop. While we do expect a drop in the sales of starter packs, for example, we certainly are not expecting a decline in connection,” says Warren Marsden, GM, e-commerce at Pick n Pay.

Marsden adds that 20 Hypermarkets around the country will offer this service to start, the details of which are currently being finalised. In regions where no Hypermarkets exist, such as East London and George, in the Eastern Cape, for example, the aim is to ensure supermarkets in those regions are equipped to do the registrations.

Edcon, which houses Edgars, Jet and CAN, gives no indication of any concerns, stating: “We are aware of the RICA Act and we are in the process of implementing it. We will continue to offer our customers a full range of cellular products.”