Electronic Communications Act, 2005 (Act No. 36 of 2005)RegulationsNumbering Plan Amendment Regulations, 2020Reasons Document: Numbering Plan Fourth Amendment Regulations, 20263. Amendments of regulation 1 of the Regulations |
| 3.1. | Insertion of the definition of “revenue generating activity”. |
| 3.1.1. | As contained in the explanatory memorandum, the objective of the inclusion of the term is to provide means by which a subscriber can indicate usage of the assigned mobile number and thus object to a withdrawal of the assigned mobile number. |
| 3.1.2. | In response, Telkom proposed that the draft definition include reference to ‘recharge purchases’ and ‘Value Added Services (VAS) purchases’ to the list of revenue generating activities.3 |
| 3.1.3. | Telkom also submitted that the word “may” in the definition is not clear and could lead to misinterpretations and regulatory uncertainty. To this end, it was recommended by Telkom that the word “may” be deleted or further clarified4. |
| 3.1.4. | Telkom further recommends reference to previous revenue generating activities in the definition. This, Telkom submits, is to cater for instances where a customer bought a bundled service, which may also include free elements (data, voice minutes, sms’s, etc.), which is then used after the revenue generating activity5. |
| 3.1.5. | MTN considers a subscriber to be active and remain connected to the operator’s network when the subscriber performs a revenue generating event (RGE). The underlying principle is that the event must have a revenue value associated with it to be considered an RGE. Consequently, this generally includes activities such as: |
| 3.1.5.1. | Subscriber originating events; |
| 3.1.5.2. | Incoming events if the subscriber can influence value/volume; and |
| 3.1.5.3. | Events relating to the recognition of revenue6. |
| 3.1.6. | MTN submits that the Authority must reconsider the definition for a revenue generating activity, to incorporate the underlying principle that such an activity must have a revenue value that can be associated with the subscriber’s number and that any request for exemption from deactivation should be a paid service which would then constitute as a revenue generating activity. |
Decision
| 3.1.7. | The definition of the term is based on the usage of a mobile number and by implication, a mobile service which includes the use of data, voice, SMS and value-added services offered in terms of primary service i.e. mobile service. The proposal by Telkom to include “recharge purchases” and “value-added service purchases” as part of the definition seeks to incorporate “pay-before-use” product offerings, which is inconsistent with the objectives of the definition in the context of the Regulations. This includes it’s second proposal to include other purchases into the definition i.e. bundle purchases. |
| 3.1.8. | The Authority has retained the term “may” in the definition. A licensee has the prerogative to charge for the use of services encompassed within a mobile service. Thus, irrespective of whether a licensee opts to charge for a voice call, the subscriber has nonetheless made use of the service as is the case with a voice call that is toll-free or zero-rated. |
| 3.1.9. | It is the Authority’s considered view that this comment is of no moment considering that the definition of RGA has been amended. It doesn’t have the word “initiated” by the customer. |
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3 Telkom submission, p 3.
4 Telkom submission, p 3.
5 Telkom submission, p 3.
6 MTN submission, p 5.