South Africa’s two biggest mobile operators, MTN and Vodacom, could each be fined as much as R5 million for failing to comply with recently introduced regulations governing how mobile data bundles expire, roll over, and are transferred between users.
The warning comes from Communications Minister Solly Malatsi, who told Parliament that the Independent Communications Authority of South Africa (ICASA) is responsible for enforcing the regulations and determining penalties under the Electronic Communications and Transactions Act.
ICASA Stands Firm on Existing Penalties
According to Malatsi, ICASA believes the current sanctions are sufficient to ensure compliance and has no immediate plans to increase the maximum fine available under the law.
Beyond financial penalties, operators that fail to follow the regulations could face additional consequences.
These include having their names publicly disclosed in national media and being required to fund consumer awareness campaigns explaining customers’ rights.
For major telecommunications companies, the reputational impact of such measures could prove just as costly as the monetary penalties.
New Rules Aim to Strengthen Consumer Protection
The disputed regulations were published by ICASA in January 2026 as amendments to the End-User and Subscriber Service Charter Regulations.
The revised framework brings voice, SMS, and data services under a single set of consumer protection rules, replacing several separate regulations that previously governed these services.
Among the key changes is a requirement for mobile operators to notify customers when they have used 50%, 80%, and 100% of their purchased data bundle.
These notifications can be delivered through SMS, push alerts, or other communication channels, although customers are allowed to opt out if they choose.
The rules also prohibit operators from charging out-of-bundle rates unless subscribers have expressly agreed to those charges in advance.
Data Rollover and Sharing Become Mandatory
Another major feature of the regulations is the protection of unused data.
Providers must now allow any remaining data to roll over at least once after the original bundle expires.
Customers must also be given the ability to transfer all or part of their data allocation to other users on the same mobile network, expanding flexibility for subscribers who wish to share unused data with family or friends.
Mobile Operators Challenge Regulations in Court
Despite the possibility of heavy penalties, both MTN and Vodacom have launched legal proceedings against aspects of the regulations, filing court applications in late July 2026.
The companies insist they are not opposed to stronger consumer protections.
Instead, they argue that several provisions are unclear, difficult to implement, or could create unintended consequences for both operators and customers.
Vodacom Raises Concerns Over Practical Implementation
Vodacom has highlighted several sections of the regulations that it believes require clarification.
One issue relates to out-of-bundle charging.
The company argues that the current wording could unintentionally cause voice calls to disconnect automatically once a customer’s bundle is exhausted if they have not consented to out-of-bundle billing.
According to Vodacom, this outcome was likely never intended by regulators.
The operator also questioned the requirement allowing data transfers to an unlimited number of users on the same network, warning that it could create opportunities for misuse and arbitrage.
In addition, Vodacom expressed concerns about applying mandatory rollovers to products offering extremely large fixed wireless access data allowances, saying such services present unique technical challenges.
The company further questioned why mobile virtual network operators (MVNOs), which rely on infrastructure owned by larger operators, are exempt from complying with the same obligations.
MTN Calls for Equal Treatment Across the Industry
MTN echoed concerns over what it considers unequal regulation, arguing that a competitive telecommunications market depends on consistent rules being applied to all providers offering similar services.
The company maintains that regulatory fairness is essential if operators are expected to compete under the same commercial conditions.
Parliament Questions Data Expiry Policies
The legal dispute has also drawn attention from Parliament.
Khusela Diko, chairperson of Parliament’s Portfolio Committee on Communications and Digital Technologies, responded after the court applications were filed by visiting MTN’s offices to discuss the matter.
Diko said the committee has long questioned why mobile data should expire at all, stating that it has never been convinced there is a technical justification for the practice.
While acknowledging that Parliament is engaging operators to better understand their concerns, she made it clear that the discussions are not intended to weaken ICASA’s regulatory position.
Court Battle Could Delay Full Enforcement
Although the regulations remain in force and the potential penalties remain valid, the ongoing legal challenge may postpone their full implementation until the courts decide whether the contested provisions should stand.
For South African mobile users, the outcome of the case could shape how data bundles are managed in the future, determining whether expanded rollover rights, mandatory sharing options, and stricter controls on out-of-bundle charges become permanent features of the country’s telecommunications landscape.
