The Economic Freedom Fighters (EFF) condemns the decision by MTN and Vodacom to approach the courts in an attempt to undermine regulations introduced by the Independent Communications Authority of South Africa (ICASA) to protect consumers from the unjust expiry and forfeiture of unused data, voice, and SMS bundles.
The EFF has consistently fought for the protection of the poor masses against the exploitative practices of telecommunications companies. We took the struggle for the protection of unused data directly to Parliament and have consistently maintained that data does not rot, expire, or perish like food. There is no rational or moral justification for telecommunications companies to confiscate data that our struggling people have already paid for simply because a date printed in a system has been reached.
ICASA subsequently introduced regulations that seek to ensure that unused data, voice, and SMS bundles are rolled over automatically and at no additional cost to consumers. This was a significant victory for millions of South Africans who are forced to spend a substantial portion of their limited incomes on communication services.
Yet, instead of accepting reasonable consumer protections, MTN and Vodacom have chosen to defend a business model built on the forfeiture of services that consumers have already purchased. These corporations are not struggling. They generate billions in revenue from the people of South Africa, while ordinary people are forced to purchase expensive data bundles simply to participate in the modern economy.
MTN argues that ICASA exceeded its legal powers by imposing requirements relating to the rollover of unused bundles, opt-in consent for out-of-bundle charges and the unrestricted transfer of unused data. MTN further claims that these rules could reduce competition and ultimately increase prices. Vodacom, meanwhile, argues that aspects of the regulations are ambiguous and difficult to implement, while claiming that it supports consumer protection.
The argument that protecting consumers will somehow reduce competition or increase prices is particularly cynical. The question that MTN and Vodacom must answer is why the protection of South Africans from losing paid-for data should be treated as a threat to their business model. If the telecommunications industry is genuinely competitive, then allowing consumers to retain data they have already purchased should not threaten competition.
Additionally, the claim that the regulations are difficult to implement is equally unacceptable. These are some of the largest telecommunications corporations operating in Africa, with sophisticated billing, customer-management, and digital systems. They are perfectly capable of implementing systems that notify and prevent unauthorised out-of-bundle charges, and roll over unused data.
The attempt by MTN and Vodacom to challenge these regulations exposes the greed at the heart of South Africa’s telecommunications industry. These companies want the public to believe that allowing them to retain data they have already paid for is somehow an unreasonable burden. The reality is that the current system has allowed telecommunications companies to profit from unused data while the poor masses lose money.
The EFF calls on the ICASA to defend these regulations with determination. The regulator must not surrender to corporate pressure or allow powerful telecommunications companies to dictate policy through litigation. The EFF will also be meeting with all relevant telecommunications service providers to engage more critically on a practical way forward in the interests of our people.
The EFF has been supportive of Pan-Africanism and continental unity.
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