Consumer Rights

CRAN ENFORCES CONSUMER RIGHTS IN RESPECT OF TELECOM NAMIBIA CUSTOMER SUBSCRIPTION AGREEMENTS.

The Communications Regulatory Authority of Namibia (CRAN) is mandated to ensure that consumers are protected from exploitation and abuse in respect of price, quality, variety of services and user equipment supplied.

In light of the above a consumer complaint was lodged in 2016 by Mr. Simon Ipinge (in line with CRAN’s consumer protection regulations) against Telecom Namibia Limited the standard contract (clause 2.1 terms and conditions) of the subscription service agreement. The said agreement states “consumers who do not exercise the option to renew their contracts, Telecom Namibia Limited will automatically renew same and in turn the consumers will continue to pay a subscription fee inclusive of the price for a handset, even though they do not receive the handset”.

“The Authority has therefore given a ruling on the principle on 27 March 2018 and is further mandated to ensure that the principle is reflected in the contractual provisions” states Festus K Mbandeka, Chief Executive Officer of CRAN. He added that this matter is settled, and the Authority’s decision is in favour of Mr Ipinge. The nature of the decision is how-ever one that benefits all consumers that enter into subscription contracts with Telecom Namibia.

The decision is based on the following:

1. That Telecom Namibia should amend the terms and conditions of its clause 2.1 in the following respects:

In respect of mobile contracts:

1. a) That Telecom Namibia should notify its customers 30 days before such customers’ Subscription Agreement lapses in writing of the date upon which his/her contract is lapsing and that he or she is entitled to extend the Agreement by a further contract period, in which the Customer would be entitled to an offer for a new device.
2. b) The extension of the subscription Agreement should be in writing and should be signed by both Telecom Namibia and the Customer. In the event of such extension, the remaining provisions of the subscription agreement will apply.

In respect of fixed contracts:

1. a) That Telecom Namibia should notify its customers 30 days before such customers’ Subscription Agreement lapses in writing of the date upon which his/her contract is lapsing and that he or she is entitled to extend the Agreement by a further contract period, in which the Customer would be entitled to an offer for a new device from Telecom Namibia on the package to subscribe to depending on whether they want to renew or proceed with the agreement.
2. b) The extension of the subscription Agreement should be in writing and should be signed by both Telecom Namibia and the Customer. In the event of such extension, the remaining provisions of the subscription agreement will apply.
3. c) Where the Agreement is not extended in accordance with the provisions of the agreement but nevertheless continues to operate indefinitely, then, the subscriber shall be automatically transferred to a Standard Package with a reduced subscription and no handset.

The principle addressed in the amendments must be applied to all new and existing Subscribers with contracts that lapse after the date on which this decision was communicated to the Telecommunications service provider.  CRAN is committed to treat all consumer related matters as a matter of public policy and in the best interest of the consumers.Aggrieved and affected consumers are encouraged to manage their cases with their service providers directly. If they feel their cases have not been addressed within 14 days from the date in which it was formally reported to the service provider, consumers are then encouraged to follow CRAN’s consumer complaints procedure.

For any queries in this regard contact Mrs Emilia Nghikembua, Head: Legal Advice, at Tel: (061) 222 666 or via electronic mail to ENghikembua@cran.na. Issued by CRAN: