Feb 23 2005

IT Web (www.itweb.co.za) reports that the Independent Communications Authority of SA (ICASA) would like to see shorter cellphone contract in a report entitled “Enquiry into Handset Subsidies Findings and Conclusions”.

It recommends that cellphone companies shorten contract periods from the industry average of 24 months for postpaid customers, to a period not exceeding 18 months, but has not called for an end to handset subsidies. The other findings include that contracts must be explained to customers verbally and that small print in the contracts be enlarged.

The regulator wants greater transparency in the market and first issued a discussion document in May last year, followed by a series of public hearings and presentations earlier this year. Councillor Nadia Bulbulia headed the working group on the issue.

ICASA also accuses the network operators of using the approved tariffs as the minimum of what can be charged, instead of as the maximum charge, which was intended.

ITWeb also reports that regulations that ICASA intends developing will require network operators and their service providers to offer equally beneficial terms for postpaid customers whether they choose a handset or not.

“Regulations will be made that require transparency on where the financing of the free handsets comes from and the value of the various offerings, in order to ensure other customers are not unnecessarily burdened with costs of acquiring postpaid customers that account for the major part of the operator's revenue from calls made,” the ICASA report says.