The government`s proposed new laws pertaining to SIM cards and cellphones have come under attack from some mobile service providers.
They have criticised the new regulations for being impractical to implement, as well as for raising anti-competitive issues.
Government this week announced new statutory requirements for cellphones and SIM cards that will require users to report stolen, lost or damaged SIM cards and cellphones to the police. All subscribers - whether prepaid or on contract - will also have to be registered with service providers.
Those who fail to comply could face jail sentences, as government wants to combat serious and organised crime where cellphones are often used.
The new regulations are part of the newly-approved Regulation of Interception of Communications and Provision of Communication-related Information Act. They have been held over to the end of this month, as government and industry players engage in discussion regarding the implications of the new laws.
However, Cell C`s chief commercial officer, Jim Courtney, has expressed concern about the regulations, saying they pose "significant challenges in terms of implementation and competition".
Courtney says the registration of users could potentially be a major obstacle to mobile number portability, as existing subscribers have been given a window period in which to register with their service providers, while new subscribers will have to register immediately.
"Anyone who wishes to move to another service provider and keep their existing number would be considered a new subscriber and would have to register immediately. However, subscribers who choose to stay with their existing providers will have the window period. Thus many people could be discouraged from taking advantage of number portability and switching networks," Courtney says.
"We would be glad to see government reconsider the mechanisms and timing of the new regulations, which could have an unintended anti-competitive impact."
Courtney also questions the practicality of implementing the new regulations, which require that prepaid users provide their details when purchasing a new starter pack, while existing prepaid users have to register with their service providers.
Leon Perlman, chairman of the Wireless Applications Service Providers` Association (WASPA), believes the sheer volume of prepaid users would be a major strain on the resources of mobile service providers. He says this will be one of the issues raised in the discussions with government.
Although WASPA is not involved in the discussions, as none of its members will be directly affected, Perlman believes the regulations will have a serious chain effect on the entire telecommunications sector.
"It will affect everyone in some way, from mobile service providers to cellphone and SIM card resellers. The issue of resources is certainly one of the main points that will have to be considered, and thus the practicality of creating a paper trail for users could be problematic."
Share