Major mobile operators in South Africa, acting through an industry association, are refusing to support the measures proposed by Icasa regarding biometric verification of SIM cards and the five-number limit, as these regulatory proposals overlap with the existing SIM card registration law, Rica, and could disrupt the industry's own efforts to clean up the SIM card market.
The Association of Communications and Technology (ACT), which represents companies Vodacom, MTN, Telkom, Cell C, Rain, and Liquid Intelligent Technologies, stated its support for the general goal of strengthening SIM card registration but does not approve of the proposed measures in their current form.
ACT CEO Nomvuso Bathi, in a written response to TechCentral regarding the draft regulations, emphasized: 'We differentiate between supporting the goals of the proposed provisions and approving specific measures in their current form.' She added that there are significant differences between Icasa's proposals and the frameworks developed by the industry, especially concerning SIM card registration limits, biometric verification requirements, and practical implementation conditions.
The proposed amendments to the numbering plan regulations, which were published for comment on Wednesday, require operators to verify the subscriber's face or fingerprint against Department of Home Affairs data upon activation, re-activation, or replacement of a SIM card. Operators will be given two years to re-verify existing customers, and no operator can assign more than five numbers to one subscriber. Violation of the core verification rules will incur fines ranging from 2 to 4 million rand per violation.
Cost and Five-Number Limit
Bathi noted that an additional assessment is required on several issues, including the cost and technical feasibility of verifying subscribers against Department of Home Affairs data, the necessary infrastructure for system integration and verification, as well as operational readiness and consequences for existing subscribers.
The five-number limit, she said, 'requires careful consideration, especially in light of South Africa's socio-economic conditions and the legitimate reasons why consumers and businesses may need multiple SIM cards.' The Icasa proposal exempts companies from biometric checks but not from this limitation.
ACT also objected to the pace of change. In July, Icasa introduced amendments to the same regulations, establishing norms for deactivating inactive SIM cards. Bathi stated that 'introducing additional substantial obligations in such a short period calls into question regulatory predictability, policy consistency, and the cumulative compliance burden placed on licensees.'
A deeper dispute concerns which law should govern SIM card registration. This is the task of Rica, according to section 40 of the Act, and the Department of Justice and Constitutional Development is its custodian. Instead, Icasa is using its authority to regulate numbering resources.
Bathi stressed: 'While Icasa has a legislative mandate to regulate numbering resources, there needs to be greater clarity regarding the justification for introducing substantial subscriber registration and identification requirements through a separate regulatory instrument.' She added: 'We are concerned that overlapping regulatory processes could create uncertainty, duplicate implementation costs, and potentially undermine progress made by the industry.'
Icasa's explanatory note states that the verification requirement 'differs' from SIM card registration under Rica. The regulator informed parliament last year that it wished to transfer the management of Rica from the Department of Justice to itself.
Operators have their own plan. In June, ACT announced a temporary enhanced identity verification system, stricter registration control, and increased oversight of SIM card distribution channels, and submitted proposals to the Department of Justice for reforming section 40. Broader use of biometric authentication at registration points was one of the solutions discussed by the industry. Bathi reported last October that amendments to Rica continue to stall: 'Every time they are updated and sent up the chain, they are returned.'
Industry Plan
ACT reported that over the past two years, it has engaged with the Competition Commission and the Department of Justice. Bathi also mentioned that work is currently underway with the Department of Home Affairs to align technical verification standards, and this work has reached the technical development stage.
Icasa's memorandum indicates that most operators informed the regulator last year that they had implemented biometric verification only for contract customers, not prepaid ones.
ACT stated that it will officially submit its objections to Icasa. Interested parties have 30 working days from October 28th to submit comments.