10 April 2007
The Independent Communications Authority of South Africa (Icasa) will hold
public hearings into mobile handset subsidisation. Icasa published a Discussion
Document in 2005 calling for written inputs into handset subsidy. The purpose
of the Discussion Document was to provide Icasa and the public with a
comprehensive view regarding consumer needs and the competitive environment in
the mobile industry. Since the introduction of mobile telephony in 1994 Mobile
Operators and Service Providers offer handset subsidies to contract customers
under the pretext of a "free" phone. Currently there are no "real" options for
a period of less than 24 months to post paid subscribers.
The subsidy ties a consumer to a period of 24 months, after which the
consumer has to give three months notice for cancellation of the contract.
Consumers are allowed to upgrade the handset for a further period of 24 months
within 18 months of concluding the contract.
Icasa called for the public to comment on, amongst other things, "whether it
is necessary to have such long contract terms". South Africa is not unique in
terms of tying subscribers into such long contract periods and operators are
using the provision of a subsidised handset as a justification. In 2005, Icasa
held public hearings on the discussion document after which the Authority
published its findings, conclusions and draft regulations in 2006.
Icasa will conduct public hearings so as to finalise regulations relating to
the handset subsidy. The hearings follow a draft regulation published by Icasa
in June 2006 calling on submissions with regards to mobile handset
subsidisation. The hearings are scheduled as follows:
Date: Wednesday 11 April 2007
Time: 09h00-17h00
Venue: Icasa Block C Presentation Room Pinmill Farm 164 Katherine Street
Sandton, Gauteng
09h00-09h45 Telkom
09h45â10h30 Vodacom
10h30â10h45 Tea break
10h45â11h30 Nashua Mobile
11h30â12h15 Mike Lawrie
12h15-13h00 Virgin Mobile
13h00-14h00 Lunch
14h00â14h45 MTN
14h45-15h30 Cell C
15h30-16h15 Autopage
Enquiries:
Nomvuyiso Batyi
Tel: 011 321 8415
Fax: 011 321 8536
E-mail: nbatyi@icasa.org.za
Sekgoela Sekgoela
Tel: (011) 321 8434
E-mail: ssekgoela@icasa.org.za
Issued by: Independent Communications Authority of South Africa
10 April 2007
Source: Independent Communications Authority of South Africa (http://www.icasa.org.za)
