The legal action, first reported by News24, represents a significant escalation in the long-running dispute between the mobile operators and the regulator over data expiry and consumer rights.
MTN Challenges Three Key Provisions
MTN served court papers on 22 July, asking for the End-User and Subscriber Service Charter Amendment Regulations to be reviewed, set aside and declared invalid, with Icasa cited as the first respondent. The notice of motion challenges three specific aspects of the regulations:
- The rollover requirement – forcing operators to automatically roll over unused data, voice and SMS bundles at least once at the end of their validity period at no charge
- The out-of-bundle opt-in – requiring an opt-in system for out-of-bundle charges
- The unrestricted transfer requirement – allowing free transfers of unused bundles to users on the same network
MTN argues that Icasa acted beyond its legal powers in introducing these provisions.
Competition and Price Concerns
MTN contends that the rules will reduce competition and push up prices by removing consumers' ability to choose cheaper bundles without rollover or transfer rights. The operator also argues that the regulations create an uneven playing field because they do not apply to mobile virtual network operators (MVNOs), which could gain a competitive advantage by not being subject to the same requirements.
Vodacom's Position
Vodacom has confirmed that it has filed its own application to review parts of the same regulations. The operator told News24 that aspects of the regulations are ambiguous and difficult to implement, while stressing that it supports consumer protection in principle.
Both operators have indicated they would continue to engage with Icasa in good faith despite the legal action.
Background to the Dispute
The amendment regulations were gazetted in January 2026 and will force operators to automatically and at no charge roll over unused data, voice and SMS bundles at least once at the end of their validity period. Uncapped, free and promotional bundles, and bundles valid for seven days or less, are excluded from the requirements.
The rules also require:
- Depletion notifications to alert users when their bundles are running low
- That bundles closest to expiry are used first
The regulator had previously proposed a six-month rollover plan in 2024 but walked back that proposal in favour of the softer once-off rollover now included in the final regulations.
During public hearings held later that year, MTN branded the proposals as regulatory overreach. Both operators pressed Icasa – unsuccessfully – to conduct a regulatory impact assessment before finalising the rules, arguing that the potential consequences for the industry and consumers had not been properly evaluated.
What Happens Next
The legal challenge now moves to the courts, where MTN and Vodacom will argue their cases against the regulator. Icasa will have to defend its regulations and demonstrate that they fall within its legal mandate and serve the public interest.
The January 2027 implementation date gives the courts time to hear and decide the matter before the rules are scheduled to take effect. However, if the legal proceedings are not resolved before that date, the regulations may be implemented while the court cases continue, creating uncertainty for both operators and consumers.
The dispute raises fundamental questions about the balance between consumer protection and regulatory intervention in a competitive telecommunications market, as well as the extent of Icasa's regulatory powers.
With reporting from TechCentral, News24, MyBroadband, and BusinessTech.
