Telecom ordered to stop forcing contracts

THE Namibian communication regulator has ordered Telecom Namibia to stop with their automatic renewal of contracts after they ended, especially when it’s done without customers’ approval.

The Communications Regulatory Authority of Namibia (Cran) ruling, which was made last year, was revealed in the Government Gazette dated 13 June 2019.

Cran have ordered Telecom to amend its “Namibia Standard Agreement” clause 2,1 which allows the practice to happen with the assumption that the consumer’s preference had not changed.

The ruling came as a result of a consumer complaint to the communications regulatory authority in 2016, where the individual was forced into a speed link agreement without his approval through Telecom’s automatic renewal.

MOBILE CONTRACTS

In terms of mobile contracts, the regulator said apart from the amendment of the draconian clause, Telecom should in writing notify their clients who are in (contractual obligation) within 30 days of expiration if they intend to extend their contract or not.

“Within 30 days of expiry of the duration of the agreement, Telecom Namibia Limited shall in writing notify the subscriber that his/her contract is lapsing on this date, and that he or she is entitled to extend the agreement by a further contract period, in which event the subscriber would be entitled to an offer for a new device”, the order read.

If the client agreed to the extension, the extension of the subscription agreement in accordance with the clause shall be in writing, and shall be signed by or on behalf of both parties, and other agreement provisions should also apply.

Cran ordered that if a client wishes not to extend their contracts, they should be automatically transferred to a standard package with reduced monthly premium and no handset.

“Where the agreement is not extended in accordance with the provisions of the clause, but nevertheless continues to operate indefinitely in accordance with the clause, the subscriber shall be automatically transferred to a standard package with a reduced subscription and no handset”, the ruling stated.

FIXED CONTRACTS

As far as fixed contracts are concerned, the regulator said Telecom should in writing notify their clients who are in (contractual obligation) within 30 days of expiration whether they intend to extend their contracts, and offer clients advice on which package to subscribe to, depending on their decisions.

“In which event the subscriber would be entitled to receive advice from Telecom Namibia on the package to subscribe to, depending on whether they want to renew or proceed with the agreement”, Cran ruled.

Telecom should furthermore ensure that the agreement extension is in writing and signed by both parties, while the remaining provisions of the subscription agreement will apply.

The regulator made provision that if the fixed contract is not extended by the two parties agreeing as stipulated by clause 2,1, the agreement shall then continue indefinitely for a period of 30 days until the client expresses their consent.

The new amendments will apply to new contracts and existing contracts which ended after the ruling was communicated, Cran said.

Telecom is also going to be submitting their standard packages to the authority for approval in terms of section 53 of the Communications Act, within 30 days from date on which the decision was communicated to it.

Cran stated that for the first 12 months after the implementation of the amendment, Telecom must provide the regulator with quarterly reports indicating the consumers whose contracts have lapsed, and how such consumers were handled in line with this decision.

Meanwhile, Cran said Mobile Telecommunations Limited was already informed about the automatic renewal of contracts, and they have acted on it, in accordance with the regulator’s order.