South Africa bans long contracts and SIM locking

Operators in South Africa will no longer be allowed to offer contracts exceeding 24 months, extend a contract in exchange for subsidised phones, or SIMlock handsets.

The regulations were issued by the country’s telecoms regulator, the Independent Communications Authority of South Africa (ICASA) and are based on public discussions held earlier this year.

The core proposals will limit contract terms to either six, 12 or 18 months, with operators barred from automatically renewing a contract with requirements of a new contract to be signed by the customer upon expiration.

The regulator also requires that contraction terms and conditions be made clearer, including the clear statement of the contract term and early termination fees. Operators will be required to send at least three messages to subscribers advising their contract is nearing its termination period.

ICASA also moved to prohibit the practice of SIM-locking, handset-locking, software-locking and any other type of locking a handset.

South Africa has the highest mobile penetration rate on the continent, and the second largest number of subscribers.