Operators offer RICA riches

Mobile operators are pulling out all the stops to get subscribers to register their SIM cards, with millions being given away in prizes.

The Regulation of Interception of Communications and Provision of Communication-Related Information Act (RICA), which came into effect mid-year, has put pressure on operators' subscriber numbers.

Both MTN and Vodacom have said the registration process is trimming the amount of additions to their networks.

MTN said in October that its South African subscriber base was down 4.7%, in the three months to September, as 800 000 users were disconnected due to the Act. Vodacom lost 530 000 connections from June to September.

To counter the effects of the new law, which will see people being disconnected if they don't register before the first quarter of 2011, Virgin Mobile and Cell C are offering registration incentives to their subscribers.

If, for example, the winning number is 084 312 6610, the mobile company will pay out just over R8.4 million. The competition runs until the end of January, and the winning draw takes place on 1 February, adds Camerer.

“RICA has had a major impact on both customers and network operators. Despite best efforts to implement measures to simplify and ease the registration process, RICA has been a major deterrent,” Camerer explains.

He says the biggest effect of RICA has been in the informal market, where registration terminals and agents are not available. Camerer says this has moved sales from the informal market into the formal segment.

Virgin Mobile, SA's smallest network operator, also plans promotions next year to encourage people to register.

Jonathan Newman, head of strategy and business development, says the company wants to encourage its customers to register before the deadline. He says it will hold promotions next year, but hasn't wrapped up the details yet.

So far, it has run several educational initiatives aimed at informing customers about RICA, such as how it works and where to register.

While Virgin Mobile is more focused on the postpaid market, it has seen a drop in prepaid demand due to the complexity and inconvenience of RICA. Newman says “the requirement that prospective prepaid customers supply documentation that they would not normally carry around” is particularly onerous.

“We realise that many customers will need a bit of an extra incentive to get them motivated to go to a store and get the admin done - we don't want the traditional 'mass panic' that usually happens just before a deadline and promotions help make customers more aware of what they need to do,” Newman says.

Vodacom says it is also busy with an educational campaign, and “will announce details of any further activities related to RICA registration in due course”.

MTN did not respond to queries regarding its RICA incentives.

However, even retail stores are getting in on the act. Pep is offering R10 million in cash, airtime and phone prizes for people who register in its stores.