Millions of South Africans who buy prepaid data vouchers are no closer to clarity as to whether the data bundle can be rolled over for three years, as the National Consumer Commission (NCC) has yet to provide input to operators.
Meanwhile, cellular operators are standing firm that the Consumer Protection Act (CPA) does not apply to unused data, and that consumers cannot rollover data for the three-year rollover date stipulated for electronic vouchers in the law.
The NCC, a body created when the CPA came into effect last April, believes people should get value for money, and that data bundles should not expire before the three years are up.
However, telecoms companies are waiting for clarity from the NCC as to how the law affects data bundles, and were asked to make written and oral submissions on the issue earlier this year; they are still waiting for feedback as to how the law affects data bundles.
In the meantime, millions of subscribers are losing data they have paid for as the operators stick to current data expiry periods.
Paid for?
NCC commissioner Mamodupi Mohlala-Mulaudzi has previously said unused data must carry over for three years and cannot expire any earlier. All data and minutes accumulated from last April must roll over for a full 36 months, and operators will be forced to comply with this section.
Section 63 of the Act says prepaid certificates, cards, credits, vouchers or similar devices only expires when the full value has been redeemed, or three years after the date on which it was issued.
The commission has already tried to take cellular firms to task over prepaid data bundles expiring. In a recent case before the National Consumer Tribunal, it came to light that the NCC sees the current practice of not rolling over prepaid data for three years as a contravention of the Act.
According to the tribunal's judgment, Cell C did not agree that its subscriber contract contravened the section. However, whether it actually does or not did not come up in the tribunal's ruling, as it set aside the NCC's compliance notice on procedural grounds.
The NCC did not respond to a request for comment on the issue and where it was in terms of ensuring that data rolls over and consumers do not lose out. Mohlala-Mulaudzi was not available to comment telephonically this morning.
Waiting game
Operators are still waiting for clarity on how the Act affects data bundle expiry dates. Cell C's executive head of communications, Karin Fourie, says until it has the opportunity to fully engage with the NCC on its interpretation of how the Act impacts its data bundle expiry periods, it cannot discuss the matter in “any detail”.
Fourie says there should be a distinction between the voucher and the actual data for which such voucher is redeemed or exchanged. Once the voucher has been exchanged or redeemed for data, the section will not apply, she notes.
“In our view, it is only the voucher that has to be valid for a period of three years, and not the actual data on the voucher.” Fourie adds that it does warn consumers about expiry dates and is investigating extending the validity window period of its data products.
Telkom concurs, saying once the voucher has been swapped for goods or services, the section no longer applies. The NCC requested all operators to make written and oral submissions on their interpretation of Section 63, and Telkom made its presentation in February and is currently awaiting feedback from the NCC, it says.
Vodacom's executive head of corporate communications, Nomsa Thusi, says there is an ongoing investigation by the NCC on this issue, and it is co-operating, but prefers not to comment on the issue until the process is complete.
Elizabeth de Stadler, a senior associate with Esselaar Attorneys, says the prepaid voucher issue is important for consumers, but very difficult to apply in the mobile industry. She says consumers and operators have an interest in certainty in the issue.
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