The Consumer Goods and Services Ombuds (CGSO) alleges that apart from MTN, SA's mobile network operators have declined to work with the organisation.
The CGSO is the consumer goods and services industry's compulsory scheme, set up in line with the Consumer Protection Act. It enforces the consumer goods and services industry code of conduct by receiving and dealing with consumer goods complaints by a consumer free of charge and investigating alleged contraventions.
It was also established to reduce the burden of consumer complaints on the National Consumer Commission (NCC).
Last week, the CGSO published a report that reveals the number of complaints it received between 2015 and 2016. The report shows the highest number of complaints received during the period have been against MTN.
However, the CGSO notes the number of complaints made about other cellphone networks only reflected those lodged to July, "as they stopped dealing with complaints relating to the network providers due to their refusal to work with the CGSO".
CGSO jurisdiction
The body says the matter has been referred to the NCC for its decision as to whether network providers fall within CGSO's jurisdiction.
According to the report, MTN had a total of 613 complaints during the period.
Graham de Vries, chief corporate services executive at MTN SA, says although 613 is a "very small proportion" of the telco's subscriber base, MTN will continue to strive to bring this number down year-on-year.
"It must be noted that the strike between June and July 2015 contributed towards this number."
MTN is the only operator that has joined the CGSO, De Vries adds. "We believe that while ICASA has jurisdiction over electronic communications service and electronic communications network service licensees, the supply of devices and certain contractual issues fall squarely within the ambit of the Consumer Protection Act, and as a result, the Consumer Goods and Services Code is applicable."
Dispute resolution
Byron Kennedy, executive head for media relations at Vodacom, notes Vodacom has "never declined subscription to the CGSO".
He points out Vodacom is in discussions with the NCC with regards to dealing with or mediation of consumer complaints by an accredited alternate dispute resolution agent(s).
"Furthermore, in our view, there is no gap in attending to consumer-related complaints as Vodacom deals with all complaints it receives, regardless of whether the complaint relates to its network, products or services, contractual disputes or billing issues. All complaints are attended to and channelled through either the NCC or ICASA, or both, as regulators who preside over consumer affairs," Kennedy says.
Telkom's managing executive for group communication, Jacqui O'Sullivan, says Telkom is regulated by ICASA.
She notes that in terms of an agreement entered into by ICASA and the NCC, published in the Government Gazette last year, it clearly sets out how to deal with referral of complaints between the two authorities.
"We can also confirm that our standard terms and conditions for the provision of services are compliant with the Consumer Protection Act and we enjoy a well-functioning working relationship with the NCC. All NCC complaints received are attended to and feedback is provided to the NCC.
"We believe there is sufficient recourse available to the consumer and based on the volume of complaints received, it is clear that consumers are aware of and robustly exercise their options via the NCC in terms of the Consumer Protection Act."
Outstanding complaints
Karin Fourie, executive head of communications at Cell C, says following discussions with the NCC on the matter, it was resolved that the commission would, for now, continue to deal with these matters without referring them to another body.
"Cell C is a member of the NCC and the commission is already dealing with customer complaints or matters. In addition, the Consumer Protection Act regulates who has jurisdiction and in this case, it is the NCC. It is not for the network operators to decide who should have jurisdiction. Cell C continues to comply with the requirements of the CPA and the NCC in this matter and currently has no outstanding complaints with the commission," Fourie says.
BMI-TechKnowledge director Brian Neilson says: "I note from their Web site that the CGSO is established in terms of section 82(6) of the Consumer Protection Act and accredited by the minister for trade and industry as the industry ombud of the consumer goods and services industry.
"It goes on to explain that the ombud is the first port of call, after which complaints can be escalated to the NCC and, thereafter, to the tribunal.
"Perhaps the mobile operators feel they are not obliged to do anything with such complaints until they become serious enough to be escalated to the level of the commission," Neilson says.
Ovum analyst Richard Hurst says South African consumers most certainly do need some sort of recourse in respect of their mobile service. "It is worth noting that the number of institutions that the mobile network operators currently work with may need to be streamlined to enable all parties to resolve matters in a speedy and cost-efficient manner.
"Perhaps what we need to be asking is whether all of these bodies are indeed serving the consumer and to what degree is there a duplication of effort."
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