New laws pose challenges for mobile operators

By Damaria Senne, ITWeb senior journalist

Johannesburg, 11 May 2006

The new telecoms laws have noble objectives, but implementing them poses a number of challenges for mobile operators, says Maanda Manyatshe, MD of MTN SA. Manyatshe was speaking at a media luncheon hosted by MTN earlier this week.

Manyatshe`s presentation included a review of the Electronic Communications (EC) Act, the Regulation of Interception and Communication Monitoring Act (RICA), and mobile number portability (MNP) regulations.

Increased costs

While government`s aim is to increase telecoms penetration and reduce costs, the laws and regulations also increased the cost of doing business with the customer, Manyatshe said.

For example, MNP regulations provide that the network operator cannot refuse to port a customer who has an outstanding balance in a phone bill, nor prevent a customer who recently acquired a handset through a contract from moving to another service provider.

Unrealistic targets

The issue of registering mobile phone subscribers, as provided for by RICA, creates a number of practical challenges, he noted. If MTN, Vodacom and Cell C registered all their subscribers in a 12-month period as prescribed by the Act, they would jointly register 8 000 subscribers per hour, he said.

Manyatshe said registering subscribers also impacts on retailers, who gain the added responsibility of verifying the identity of the consumer when a SIM card is purchased. Informal traders also stand to lose the business of selling SIM cards, as they do not have the capacity to register SIM cards and verify the identity of the purchaser, he said.

"The criticism is that government does not understand the prepaid market and the onerous responsibility that it passes to mobile operators through these provisions," said Nkateko Nyoka, group executive of regulatory affairs at MTN.

Nyoka said there are still opportunities for the ICT sector to advise government on some of the issues. For example, a decision to amend RICA was made last week, providing the ICT sector with the opportunity to make further representations on that law.