Communications regulator Icasa has taken heed of industry criticism of proposed new data expiry rules and decided not to implement their most stringent aspects.

In 2022, Icasa published draft amendments to its end-user and subscriber service charter regulations in which it proposed that telecommunications operators be forced to roll over data bundles for a minimum of six months. The draft regulations also dealt with the rollover of voice and SMS bundles.

In the 2022 draft amendments, Icasa proposed that:

• Data, SMS and voice bundles would not expire for a minimum of six months, except for promotional packages, for both prepaid and post-paid users;
• Operators would apply new voice and SMS bundles only once the old ones had been used up;
• Operators should compensate users “appropriately” (extending usage or giving a rebate) for network outages or service breakdowns;
• Only once previously allocated data was depleted should newly allocated data be used; and
• Data transfer, between users on the same network, would not be limited to specific products or payment types (except for uncapped or free/promotional data).

But Icasa has walked back some of these proposals after industry players voiced serious concern about the impact they would have on consumers, especially the poor.

Vodacom, for example, warned that the rules, if implemented, would have undermined product innovation that had made it more affordable for the poor to get online. The proposed rules would also have had a negative impact on customers who bought data for short periods of time at a discount, it said.

“Bundles with shorter expiry periods — such as hourly, daily and weekly bundles — have been instrumental in making data more accessible to customers who have sporadic and limited disposable income,” Vodacom spokesman Byron Kennedy said at the time.

Icasa appears to have taken these warnings to heed, saying on Friday that planned amendments to the 2016 regulations will be significantly revised — and, in effect, softened.

“The proposed amendments aim to improve and strengthen consumer protection provisions within the charter while striking a careful balance between the interests of consumers and the need for a dynamic and effective market for bundles of voice, SMS, data and OTT (app-based internet) services,” Icasa said in a statement.

“The submissions, received from multiple stakeholders in 2022 regarding the initial draft amendments of the regulations, suggested that certain proposed changes could result in reduced consumer choices and increased prices, and impede competition within the short-term bundle market,” the regulator said.

Deferred

“As a result, the authority elected to defer the amendment of regulations 8A and 8B, respectively, in order to undertake further consultations so as to ensure an appropriate balance between the interests of consumers and the functioning of the dynamic market in this space,” it said.

“We believe that the new draft amendments … will now strike the appropriate regulatory balance,” said committee chairman, councillor Charley Lewis. “The vibrant market for low-denomination, short-term bundles will be allowed to flourish. But, on the other hand, consumers of longer-duration, larger-denomination bundles will not be unduly disadvantaged given the firm, clear guidelines we are proposing for the rollover or transfer of portions of what they have purchased in good faith.”

Read: Icasa’s tough new rules: no data expiry for six months

Icasa said the new draft regulations, which are now open for public comment, propose to:

• Treat all service bundles that customers may purchase in the same way, be they voice, SMS or data;
• Ensure that social media/OTT bundles are also treated similarly;
• Provide staggered provisions for the automatic, partial rollover of unused portions of service bundles of seven days or longer;
• Give certainly as to the full duration of very short bundles (for example, one hour equals 60 full minutes and one day equals 24 full hours); and
• Protect the right of consumers to transfer bundles or bundle portions between Sim cards on the same network.

“The proposed amendments are necessitated by numerous ongoing concerns raised by various stakeholders, including consumer groups, regarding the expiry rules for service bundles, high out-of-bundle rates and rules, and lack of clarity with regards to rollover and transfer provisions for voice, SMS, data and other types of bundles purchased by customers.”

The new draft amendments to the end-user and subscriber service charter regulations and the associated “reasons document” are available on the Icasa website.  — © 2024 NewsCentral Media

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