Lockdown law change: Mobile networks can now hike their prices

It’s fair to say that this one sailed under the radar on Sunday. The communications ministry, following the temporary direction of Jackson Mthembu during lockdown, has amended certain sections in the National Disaster Act by removing three key paragraphs from the legal document; all relating to our mobile networks.

Mobile price hikes: What has changed, and why?

Paragraph 12, and sub-paragraphs 2.4 and 8.1, have been removed from the text. As well as allowing the porting of mobile phones and the retraction of government permission to track cell phone locations, the law which prevented mobile companies from hiking their prices has gone missing.

The amendment was published in the Government Gazette over the weekend. There is now nothing in place to stop networks from increasing the cost of data bundles, handsets or any other technological products. The official confirmation came from Mthembu himself, who signed-off on the directive:

“I, Jackson Mthembu, amend the Electronic Communications and Broadcasting Directions published in Government Gazette No. 43164, Government Notice No. 417 of 26 March 2020, as amended by the Electronic Communications and Broadcasting Amendment Directions published in Government Gazette No.43209.”

Jackson Mthembu in the updated National Disaster Act

Lockdown laws ease-up on price monitoring

Price gouging was strictly outlawed across all forms of retail and commerce at the beginning of South Africa’s lockdown. However, as restrictions have been eased, companies have been given some leeway in terms of what they can charge for their products. Mthembu is acting as communications minister, following the temporary suspension of Stella Ndabeni-Abrahams.

It’s now a waiting game to see if any of our tech giants will take advantage of the newly published legal frameworks. In the past seven weeks or so of lockdown, the likes of Dis-Chem and several supermarkets have been flagged for jacking up the prices of essential items in the midst of a global health crisis.

Although the terms and conditions have not been made clear for other industries, the communications industry will be allowed to test the waters.