The Independent Communications Authority of SA (ICASA) has once again bowed to pressure by softening its stance on the way operators treat phone and equipment subsidies for consumers. The regulator has moved from hard and fast regulations to a less legally binding code of conduct.
The regulator quietly published the code of conduct late last year, intended to govern the sale, lease, rental or subsidisation of equipment provided to subscribers by operators. While ICASA says telecoms licensees will be required to subscribe to the code, legal opinion shows operators will have an easier time contesting it.
In June 2008, the regulator published the Handset Subsidy regulations that would have forced the operators to show clearly on consumer bills how much they still owe on phones they bought with their contracts.
The regulations also prevented the operators from locking consumers into long-term contracts.
However, the regulations - published almost two years ago - were heavily contested by the operators, and Vodacom went as far as to threaten the regulator with legal action. ICASA bowed to the pressure and pulled the regulations.
The new code of conduct still includes these stipulations, saying that operators must clearly state how much of the phone or other device is subsidised and how much still needs to be paid. If the operators subscribe to the code, the way in which contracts and digital equipment are subsidised will be in the hands of the consumer.
However, Paul Jacobson, of Jacobson Attorneys, says a code of conduct is more of a recommendation than a prescription that companies must follow. He says there will have to be a regulatory framework implemented that will require all the operators to subscribe to the code, before it will have any real effect.
ICASA is adamant that the Electronic Communications Act will require the operators to subscribe to the code; however, it will be easier for the operators to legally contest a code of conduct over hard-set regulations.
Meanwhile, the operators seem less than concerned by the code of conduct. “MTN welcomes the authority's publication of the draft code of conduct published as it will provide some guidance as to how the Authority intends to regulate the code of conduct in relation to the sale, lease, rental or subsidisation of subscriber equipment and minimum standards for end-user and subscriber service charters for the purposes of Section 69 of the EC Act.”
Vodacom, which took the matter to court in 2008, says it is still studying the terms of the code and will submit its comment in writing to ICASA by the end of the month.
The regulator did not respond to ITWeb on whether the operators will be made to follow the code, nor why it decided to dump the regulations for a softer practice.
Related stories:
Say goodbye to long-term lock-ins
The big cellular rip-off
Share
