South Africa’s mobile data market is heading for a legal battle after Vodacom and MTN challenged regulatory amendments by the Independent Communications Authority of South Africa (ICASA) aimes at strengthening consumer protection.
The amendments seek to address complaints about prepaid data bundles expiring before customers have used the full value they paid for, restrictive rollover conditions and unexpected out-of-bundle charges.
ICASA told Parliament’s Trade, Industry and Competition Committee that complaints from consumers had continued, particularly around the expiry of prepaid data.
“Consumers were still complaining about losing prepaid data specifically and we saw that this was associated with bundle expiry,” ICASA’s Dikeledi Mushi said.
According to ICASA, the concern is that data bundles can expire before consumers have had an opportunity to use the full amount of data they purchased.
The proposed changes have received support from several Members of Parliament, who argue that consumers require stronger protection against losing paid-for services.
However, the legal challenge brought by Vodacom and MTN means the implementation and final form of the amendments will depend on the outcome of the court proceedings.
DTIC Deputy Minister John Steenhuisen said the legal challenge would determine some of the key questions surrounding the regulations.
“The biggest fixation questions are going to be dealt with in the outcome of the litigation,” Steenhuisen said.
DA MP Kathrine Alexandra Christie voiced strong support for the proposed regulations, while EFF MP Muzi Khoza said his party welcomed measures aimed at protecting consumers from losing unused data and facing unexpected charges.
MK Party MP Sithembile Nkosi said mobile data has become an important service for households, students, unemployed young people and small businesses.
“Why should South Africans lose money for a service that they’ve already paid for but have not fully used?” Nkosi said.
BOSA MP Nobuntu Hlazo Webster said Parliament and the Communications Department had a responsibility to consider both consumers and the wider economy when dealing with the regulations.
The court challenge now leaves the timing and final form of the proposed consumer protections uncertain.
For millions of South Africans who rely on mobile data for communication, education, work and business, the outcome could determine how unused data is treated and what protections consumers receive when their bundles expire.
