Zero-rating obligations data deadline looms

Network operators have until 15 January 2027 to make the digital content of public benefit organisations (PBOs) data-free for users

5 minutes ago

Mbuso Kunene 2 minutes read

Time is ticking for South Africa’s major mobile network operators to fulfil their legal obligation of zero-rating information and services that carry social value.

This as companies like MTN, Vodacom and Cell C have been given until 15 January 2027 to make the digital content of public benefit organisations (PBOs) data-free for users.

DG Murray Trust (DGMT) CEO David Harrison said the zero-rating requirement is not a corporate social responsibility initiative; it is a condition attached to the multi-billion rand spectrum auction held by Independent Communications Authority of South Africa (ICASA) in 2022.

The expected revenues foregone were factored into the bid prices by the network operators, but ICASA has yet to indicate how it intends to hold operators accountable.

In a country with unequal access to the internet and high data costs, the zero-rating of digital content is a bridge across the digital divide that could connect people to information for education, social services, healthcare and job seeking.

“Almost every home in South Africa has a mobile phone, but many in poor communities cannot afford the cost of data.

“This means the tools for stimulating socio-economic change are out of reach for millions of people in a country where barriers to connectivity and access to information and resources are a systemic choke, which reinforces inequality,” explained Harrison.

He added that when content that carries social value is zero-rated, new mothers can access trusted information about breastfeeding and nutrition, preschool teachers can tap into support networks and receive training, and young people can be linked to work opportunities.

“Some mobile network operators, like RAIN, have risen to the occasion by zero-rating at least two dozen organisations. However, across the major operators, only 15 organisations have been zero-rated out of thousands that may be eligible,” said Harrison.

Innovation director at DGMT, Busisiwe Kabane-Bailey said, “We are deeply concerned that with the deadline just months away, we’ve had no meaningful communication from most mobile network operators, or from ICASA, about how zero-rating will be implemented, regulated and enforced.”

Background

Zero-rating is not new to mobile network operators. They were required to zero-rate educational and Covid-related health content of websites under the Covid-19 national disaster regulations.

Subsequently, some operators have zero-rated sites of their own accord, but implementation was uneven.

This means a site that was data-free on one network may not be on another, or may carry different speed and data limitations, said DGMT.

The DGMT began exploring ways to reduce data costs and expand access to public benefit content as early as 2013, long before zero-rating became a licence condition.

To streamline implementation, DGMT operates the Social Innovation Register (SIR), which is designed to review PBO applications by verifying their tax-benefit status according to Schedule 9 of the Income Tax Act and confirming they meet the technical requirements for zero-rating.

The SIR serves as a single source of information for PBOs assessed against the eligibility criteria for zero-rating and aims to reduce the need for mobile network providers to evaluate applications independently.

While the SIR was launched only in 2023, it is the product of more than a decade of work in this area.

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