With most mobile contracts lasting a period of 24 months, consumers may find themselves needing to cancel their contracts earlier than agreed with their provider.<\/p>\n
And while the Consumer Protection Act has ensured increased protection for consumers, SA mobile operators vary when it comes to charging for early contract cancellations.<\/p>\n
BusinessTech looks at the various charges and terms and conditions set out by the four biggest mobile operators in SA.<\/p>\n
MTN<\/strong><\/p>\n According to MTN chief customer experience officer, Eddie Moyce, in accordance with the CPA MTN charges the following cancellation penalties for early termination:<\/p>\n Vodacom<\/strong><\/p>\n Vodacom says it charges a maximum cancellation fee of 75% which is determined by where a customer is in their contract.<\/p>\n “If a customer cancels early on we will still need to recoup the handset and subsidies whereas later on in the contract the cancellation fee will be much less.<\/p>\n “Basically, if a customer wanted to cancel their contract our systems would look at the remaining monthly subscription as well as any additional pay-in they did on their handset. From there the system calculates what the customer owes and, as per CPA guidelines, we then reduce that amount by 25%,” it said.<\/p>\n Cell C<\/strong><\/p>\n Cell C said it amended its subscriber agreement to be CPA compliant prior to the implementation of the CPA.<\/p>\n Customers are entitled to cancel their subscriber agreements prior to the expiry date, it said.<\/p>\n “With regards to early cancellations, Cell C has introduced a reasonable cancellation penalty which is linked to the value of the goods supplied to the customer.<\/p>\n “In addition to the cancellation penalty, the customer will remain liable for all subscription charges and usage fees that have been billed, but not yet paid by the customer,” Cell C said.<\/p>\n The operator provided an extract from the current subscriber agreement:<\/p>\n 10.3\u00a0 – What happens if you cancel this Agreement?<\/strong> Telkom<\/strong><\/p>\n A Telkom spokesperson said it was difficult to provide a single answer as the charges differed in relation to the package, device and how far into the contract, the customer was. “Its a moving target,” the spokesman said.<\/p>\n In a document on the group’s website<\/a>, Telkom says for early terminations: “The subscriber shall be liable to pay upon early termination or cancellation of the contract, where applicable, any associated costs such as administration charges, outstanding device costs, service charges etc.<\/p>\n “The early termination\/cancellation fee will be calculated at the time of requesting the early termination.”<\/p>\n\n
\n10.3.1<\/strong> – If you cancel this Agreement before the expiry of the Contract Period or the Renewal Period, then you will be liable to us and undertake to pay us on demand:
\n10.3.1.1<\/strong> – a reasonable cancellation penalty in respect of any of our Services which would have continued for the remaining contract period;
\n10.3.1.2 <\/strong>– the outstanding value of the Goods on the date of cancellation of the Agreement; and
\n10.3.1.3 – <\/strong>the outstanding Subscription Fees and Usage Charges which have been billed but not yet paid by you.<\/p><\/blockquote>\nMore on South Africa<\/h3>\n