The National Consumer Commission (NCC) has told Telkom it has to amend its terms and conditions to fit in with the Consumer Protection Act's (CPA's) stipulations on bundling.
The NCC, which was formed to enforce compliance with the legislation, has received 52 complaints against the fixed-line operator. The issues raised by consumers include Telkom's practice of bundling a voice line with access to ADSL.
Consumers argue they are forced to pay for voice bundling when they do not need a landline. Other complaints include poor quality of sound, billing for services that have not been delivered, and faulty lines that are not fixed after “numerous” complaints.
Commissioner Mamodupi Mohlala says the commission has served a compliance notice on Telkom to force it to amend subscriber agreements to comply with section 13 of the CPA.
Section 13 of the Act says suppliers cannot force consumers to accept bundled products, unless it can show the convenience outweighs the limits to a consumers' right to choose, the bundling leads to an economic benefit, or the goods are offered individually at separate prices.
Mohlala says bundling is allowed as long as it fits in with the Act's requirements. However, if that is not the case, then Telkom's practice of forcing consumers to take a voice line when signing up for ADSL must come to an end, and companies across the board will be forced to align their contracts with section 13, says the commissioner.
Objection
Telkom argues the NCC's notice is “premature in light of certain undertakings given by Telkom to the NCC”. The company says it will object to the notice.
“The company is not in a position to explain the grounds of these objections since Telkom is in the process of formulating same and the matter is sub judice,” it says.
Internet Service Providers' Association of SA (ISPA) GM, Ant Brooks, has said Telkom's practice of bundling its ADSL data service with a compulsory voice service may contravene the Act.
Telkom's ADSL lines are not available in 'naked' DSL options, although a voice line can be bought individually, ISPA says. The association believes forcing a client to take a voice product when they only want a data line is a form of product bundling that is contrary to the CPA, noted Brooks.
"Many users regard the voice line rental fee as a 'Telkom tax'. In many cases, the voice service is not wanted yet consumers are forced to pay for it if they want an ADSL line. Telkom is constraining consumer choice with this practice."
Telkom would be hard pressed to prove the bundling of a voice service and ADSL line offers economic benefits or convenience to the subscriber, since many subscribers either want the option of using an alternative voice service provider, or do not want a voice service at all, noted Brooks.
Mohlala adds the commission will investigate the practice of bundling across the ICT sector from the third quarter of this year.
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