The clock 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.
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.
The zero-rating requirement is not a corporate social responsibility initiative; it’s 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.
“Almost every home in South Africa has a mobile phone, but many in poor communities can’t 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,” says David Harrison, CEO of the DG Murray Trust (DGMT).
“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,” Harrison adds.
Some mobile network operators 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.
“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,” says Busisiwe Kabane-Bailey, innovation director at DGMT.
PBOs are vetted and waiting to be zero-rated
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. In the years before the pandemic, and since, some operators have zero-rated sites of their own accord.
But where this has happened, implementation was uneven: a site that is data-free on one network may not be on another, or may carry different speed and data limitations. And the content itself was selected at each operator’s discretion, with no shared standard to ensure it delivered the greatest possible educational or health benefit.
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 acts as a single source of information for PBOs that have been 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 itself was only launched in 2023, it is the product of more than a decade of work in this area.
“Since going live, the SIR has processed more than 120 applications, demonstrating that much of the infrastructure needed to drive implementation at scale is already in place. What’s missing is engagement,” says Kabane-Bailey.
“The question is not whether operators can do this but why they haven’t. When zero-rating was required under the Covid-19 disaster regulations, networks implemented it,” she adds.
“We are calling on operators to use the existing systems to fast-track zero-rating before the deadline expires, and to urgently publish their implementation plans.”