Consumer Protection in Ethiopia's Telecom
Consumer Protection in Ethiopia's Telecom
Consumer Protection in Ethiopia's Telecom
September 2021
Signature: _________________
Date: ____________________
This thesis has been submitted for examination with my approval as University Supervisor.
Signature: ________________
Date: ____________________
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Approval Page
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Acknowledgements
Utmost, I wish to thank God and his mother, Saint Virgin Marry, for giving me the strength to
undertake this study. I am very grateful to my advisor, Kinfe Yilma (PhD) for his support and
constructive suggestions during the overall process, from the very beginning of developing the
proposal to the final stage of writing the thesis. I owe a great debt of gratitude to my husband,
Dawit Hiwot, and all my families.
I would also like to extend my gratitude to Engineer Balcha Reba from the Ethiopian
Communications Authority and many other people for their cooperation in giving interviews and
for their help in providing all the necessary information.
Finally, I would like to extend my heartfelt gratitude to Blen Tirusew, and others for their love
and support throughout my life. Without the goodwill of all these good people, I could never
have finished this thesis.
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List of Acronyms and Abbreviations
ADR Alternative Dispute Resolution
CAP Consumer Advisory Panel
TCRPD Telecommunications Consumer Rights and Protection Directive
ECA Ethiopian Communications Authority
EthCSP Ethiopian Communications Service Proclamation
EU European Union
EUECC European Union Electronic Communications Code
EUUSO European Union Universal Service Obligations
ICASA Independent Communications Authority of South Africa
LEAs Law Enforcement Agencies
NRAs National Regulatory Authorities
NB-ICS Number-Based Interpersonal Communications Service
PEC Privacy and Electronic Communications
PWD Person with Disability
QoS Quality of Services
RSA Republic of South Africa
RSAECA Republic of South African Electronic Communications Act
SADC Southern African Development Community
SMS Short Messaging Service
SNP Service Number Portability
TCCPP Trade Competition and Consumer Protection Proclamation
TFEU Treaty on the Functioning of the European Union
TFOP Telecom Fraud Offense Proclamation
USO Universal Service Obligations
VOIP Voice Over Internet Protocol
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Abstract
A few sectors have been selected for special treatment because of their unique importance to
society. The telecom industry is one such identified sector in which consumers have legal
protection. Telecom consumers' legal protection has progressed through several stages. This
thesis examines the legal protection of consumers in Ethiopia's telecommunication sector.
Ethiopia had no tailored consumer protection laws for telecom consumers, and safeguards were
only made with generic consumer laws. Special telecom consumer protection has been enacted
as a result of the recent (and ongoing) telecom policy reform. In line with international trends,
Ethiopia's consumer laws in the telecom sector consider the particular characteristics of telecom
consumers. The laws are designed to counter the power gap in bargaining power between
consumers and telecom operators, uphold social injustice, address knowledge asymmetry and
transaction costs. The quality of legal and institutional framework of consumer protection
determines the effectiveness of consumer protection in the sector. The thesis examines Ethiopia's
consumer protection framework based on comparative studies. It argues that current Ethiopian
law exhibits several normative gaps that undermine consumer rights. The country fails to
legislate laws to protect vulnerable consumer rights, a structurally independent regulator,
consumer civil association representation in the regulator, net neutrality rules on Voice over
Internet Protocol (VOIP) services, and data breach notification standards. There are no clear
rules and an independent investigative team made up of system managers in the Ethiopian
Communications Authority (ECA) to determine operator’s violation of consumer privacy. The
Ethiopian Communications Service Proclamation (EthCSP) specifies access rights to Service
Number Portability (SNP), but not how the procedures shall be carried out. Surveillance of
Internet and phone correspondence is permitted under a number of broad statutes with a low
burden of proof that has only rudimentary protection for the right to privacy. In addition, the
modest survey of the practice shows there was an awareness gap among consumers about their
own rights in the industry. The operator fails to have disclosure terms on privacy and data
protection on the subscriber’s service agreement. And the contract is an adhesive in nature that
does not include the rights of consumers in a clear manner which needs amendment. The ECA is
yet to educate consumers and inform their rights.
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Table of Contents
Acknowledgements ............................................................................................................................... i
Chapter 1 ............................................................................................................................................... 1
1. Introduction ............................................................................................................................. 1
Chapter 2 ............................................................................................................................................... 9
iv
2.3.1. Common Issues of Consumer Protection in the Telecom Sector ........................... 12
Chapter 3 ............................................................................................................................................. 35
v
3.2.2.4. Telecom Service Quality and Reliability ........................................................... 48
Chapter 4 ............................................................................................................................................. 59
Bibliography........................................................................................................................................ 63
Appendixes .......................................................................................................................................... 73
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Chapter 1
1. Introduction
1.1. Background of the Study
Over the past 150 years, the meaning of telecommunication consumers has developed to include
telephone users, mobile phone users, and Internet users. 1 Voice, data, and video services can now
be accessible on the same platform due to the emergence of Internet Protocol and broadband
networks.2 The application and the infrastructure for telecommunications and computer
technologies have become indistinct.3
Telecommunications consumers are regarded as a weaker party, with less bargaining power than
telecom sector operators. They have weaker bargaining power in contract terms than telecom
operators.4 They are also the weaker party in terms of knowledge of the characteristics of the
products or services they are contracting. 5 As a result, telecom consumers must receive reliable,
impartial, and sufficient information about the products and services purchased from telecom
operators. To protect consumer’s needs, a consumer protection framework is required.
Telecommunications consumer protection safeguards the well-being and interests of consumers
through education, mobilization, and representation.6 The law guarantees the choice, cost, and
quality of the products and services businesses offer to consumers. 7
In Ethiopia, consumer legal rights can be found in civil and criminal laws such as the law of
persons,8 extra-contractual law, 9 the 1995 FDRE Constitution,10 and the 1997 Criminal Code of
1
ITU-D Study-Group 1, ‘Consumer Information, Protection and Rights: Laws, Regulation, Economic Bases,
Consumer Networks’, (ITU 6th Study Period 2014-2017, 2017) 1.
Available at < https://www.itu.int/dms_pub/itu-d/opb/stg/D-STG-SG01.06.3-2017-PDF-E.pdf>
2
Rosalind Stevens, ‘Regulation and Consumer Protection in a Converging Environment’, (ITU report on Regulatory
and market environment Telecommunication Development Sector, ITU March 2013) 1.
Available at < https://www.itu.int/ITU-D/finance/Studies/consumer_protection.pdf.>.
3
David Messerschmitt, ‘The Convergence of Telecommunications and Computing: What are the Implications
Today?’, (1996) 84 Journal of Proceedings of the IEEE 1167.
Available at
<https://www.researchgate.net/publication/2985046_The_convergence_of_telecommunications_and_computing_W
hat_are_the_implications_today >
4
Jami Solli, ‘A Guide to Developing Consumer Protection Law’, (Consumer International April 2011) 10.
5
Ibid.
6
Ibid.
7
Elizabeth Newman, ‘Consumer Protection and Telecommunications’, in Ian Walden(ed.), Telecommunications
Law and Regulation, (5th edn, Oxford University Press 2018) 493.
8
The Civil Code of the Empire of Ethiopia, Proclamation No. 165/1960, Art.31.
1
Ethiopia. 11 The Trade Competition and Consumer Protection Proclamation (TCCPP) No.
813/2013 is the general consumer protection law currently in operation in Ethiopia. This
proclamation defines a consumer as a natural person12 and stipulates consumer rights and
protections. 13 The telecommunication sector was recently regulated by telecommunication
Proclamation No. 49/1996 and No.281/2002 (as amended), Telecommunication Services Council
of Ministers Regulation No 47/1999, and Telecom Fraud Offense Proclamation (TFOP) No.
761/2012. Under these laws, Ethio-telecom, the state-owned telecom monopoly, has been the
sole telecommunication service provider in Ethiopia. By then, there were no provisions in
Ethiopian telecommunications laws dealing with consumer rights and protection mechanisms
other than defining the term ‘basic telecommunication service' as per Art.2 (3) of Proclamation
No. 49/1996.
Ethiopia's telecom sector is being liberalized and privatized to increase market competition.
Only a portion of Ethio Telecom's capital will be made available to the public and other private
operators. A new law to that effect has been recently introduced, repealing the majority of pre-
existing laws. 14 This new development will have an impact on the protection of consumer
interests. The EthCSP No.1148/ 2019 fails to specify who is to be classified as
telecommunication consumers. Only the Telecommunications Consumer Rights and Protection
Directive (TCRPD) defines “Consumer” as any person who receives or has received
telecommunications services from a service provider through a service subscription agreement
into which he enters or accepts the terms set by the telecom service provider. 15 The word
consumer may apply to someone who uses or requests service for non-business purposes and is
not contractually bound to the provider. 16
The primary goal of consumer protection regulation is to protect consumers, and thus a sound
legal and institutional framework for consumer protection must be developed. Ethiopia needs to
put adequate policies, laws, and regulations to ensure that consumers are protected from harmful
9
Ibid, Art.2027.
10
The FDRE Constitution Proclamation No.1/1995, Art. 26(2).
11
The Criminal Code of the FDRE Proclamation No. 414/2004, Art.606.
12
Trade Competition and Consumers Protection Proclamation No. 813/2013, Art 2(4).
13
Ibid, Art. 14 up to Art.30.
14
Ethiopian Communication Services Proclamation No.1148/ 2019, Art.55(1) and Sub (2).
15
Telecommunications Consumer Rights Protection Directive No.832/2021, Art.2(6).
16
Newman (n 7) 494.
2
business practices. This thesis investigates the legal protection of telecom consumers under
Ethiopian law. It examines the extent to which current and draft laws uphold the rights and
interests of consumers in Ethiopia's telecom sector.
To give a better service to its consumers, the operator has implemented a number of steps and
improvements to its telecom service. However, controversial consumer issues are examined with
a variety of customer services.18 Among the identified telecom service problems 19:
1. Situations of poor network service quality have persisted and continue to cause serious
controversies between consumers and the service provider (Ethio-Telecom). These
include the inability to re-charge due to defective recharge card or network failures, as
well as call setup failures such as service interruption, cross talk, dropped calls, and voice
impairment;
2. Ethio-telecom has suspended internet service access without notifying its customers. The
suspension is due to either its actions or the Ethiopian government, which unilaterally
disconnects internet services. The act forbids consumer information sharing and online
shopping, as well as electronically rendered commercial undertakings. Even if Ethiopia's
Internet marketing is showing slight improvement, the telecom service provider creates
such kind of unlawful barriers;
3. Other complaints concern unsolicited Short Messaging Service (SMS) and scam
messages sent to subscribers by the service provider and Ads agents. Customers of
mobile services are not well informed about the nature and costs of value added service.
Customers are also unaware of easily accessible unsubscribe mechanisms.
17
Available at: < https://www.ethiotelecom.et/>.
18
Available at:
<https://m.facebook.com/ethiotelecom/photos/a.836009829849305/1982305721886371/?type=3&source=57 >
19
The company’s Official page on Social Media : Available at: <https://www.facebook.com/ethiotelecom/ > .
3
4. Ethio-Telecom requires sensitive private data and personal information to register
Subscriber Identification Module (SIM) cards. Art.51 (1) of the EthCSP No.1148/2019
doesn't clarify data security standards. The fate of data belonging to telecom operators in
general, and Ethio-telecom in particular, is uncertain, especially in terms of data abuse
and misuse.
The anticipation of special consumer law in the telecom sector aims to protect consumers'
communications' interests. The sector regulator has the power to investigate consumer
complaints on its own and/or order the respective telecommunication operators to have a code of
conduct that specifies the consumer's rights, including the consumer's right to privacy.
Furthermore, the introduction of private telecom business operators is seen as generally
beneficial to consumers in terms of telecom service choice, cost, and quality.
With these considerations in mind, this thesis critically examines Ethiopia's relevant legal
framework dealing with consumer protection in the context of telecom services. Informed by a
comparative perspective, it seeks to offer some recommendations to improve consumer
protection in the telecom sector.
1. To critically examine whether and the extent to which Ethiopian law protects the rights
and interests of consumers in the telecom sector;
4
2. To examine the current institutional framework for the protection of telecom consumers
in Ethiopia; and
3. To recommend ways of improving telecom laws, policies, and regulations to alleviate
impediments for the protection and promotion of consumer rights.
In general, since the thesis used a qualitative approach, the research is of the analytical research
type, and therefore text and comparative analysis are used to analyze the collected data.
5
In particular, the study looks into relevant Ethiopian laws, as consumers may benefit from both
sector-specific and general rules. In addition, the study explores how the sector regulator and
service providers protect consumer rights and interests.
Also, comparative laws such as those of the EU and the RSA laws are included to determine the
extent to which Ethiopian laws are in line with international best practices in the legal protection
of telecom consumers.
However, once new operators enter the Ethiopian telecom market, the thesis will still be relevant.
Another limitation is that there are no other new telecom operators who have competed in the
market. So, the study encountered a scarcity of consumer affairs in various services received
from alternative operators used to compare and examine consumers' live experiences.
The law is new, and after that, the regulator, many regulatory issues are not tested in practice.
Moreover, most laws have only recently been approved. Thus, there is no such case to analyze.
But, exploring the practice is secondary in this thesis since the main focus of the study is to
examine the new beginnings and prospects of the law. Another limitation that emerged during
data collection is the inconvenience of interviewees.
On both sides: it has a lot of importance in promoting and safeguarding E-commerce which
ultimately induces trade and investment, ensuring whether consumers have all the information
they need to make informed choices and have adequate protection and redress mechanism if
things go wrong, safeguarding trust in the internet by developing a robust cybercrime strategy
and data protection and privacy strategy that is future proved to cope with new technologies,
6
safeguarding trust in the internet, creating a simpler, clearer regulatory framework, protection of
personal data and privacy, knowing the right to complain and consumer complaint handling
procedure.
The other independent, unpublished work was done in Ethiopia's legal and institutional
framework for consumer protection. This study, once again, focuses on consumer rights as
outlined in TPCPP No.685/2010.21
In another way, a legal scholar examines the regulatory issues that future telecom liberalization
will give rise to.22 He argues that Ethiopia's interconnection regime should properly consider
consumer affairs when the government initiates reform in the telecom sector.23 The author
elucidates that the country’s interconnection regime, found in Article 56 of Telecom
Reg.No.47/99, is objectively general and far from complete. 24 In contrast to this study, this thesis
examines how the new proclamation's interconnection rules are designed in accordance with
consumer interconnection rights. A qualitative analysis of the rules of interconnection will be
conducted, primarily in terms of future subscribers of different telecom operators.
20
Tessema Elias, ‘Gaps and Challenges in the Enforcement Framework for Consumer Protection in Ethiopia’
(September 2015) 9 Mizan Law Review 83.
21
Dessalegn Adera, ‘The Legal and Institutional Framework for Consumer Protection in Ethiopia’, (unpublished
LLM Thesis, Addis Ababa University 2011).
22
Yazachew Belew, 'Telecommunications Services Liberalization in Ethiopia: Implications for Regulatory Issues'
(2014) 26 J Ethiopian L 55.
23
Ibid, 83.
24
Ibid, 85.
7
Besides, other research work also considers the regulatory issue of telecommunication consumer
affairs.25 This study was conducted after the government decided to privatize the sector but
before the country approved the new telecom regulatory law. As a result, the analysis was
conducted through a broad prediction of how consumer affairs should be reconsidered as legal
and institutional frameworks are developed. This thesis, in contrast, investigates how consumer
protection laws in telecommunications are designed.
To fill a gap in the literature, this thesis investigates the legal protection of telecom consumers in
Ethiopia more comprehensively. It examines, using comparative literature and doctrinal analysis,
the extent to which and whether Ethiopian law protects telecom consumers' rights and interests.
25
Lishan Adam, ‘Risks and Opportunities of Late Telecom Privatization: The Case of Ethio Telecom’ (2019)
Research ICT Africa, 5.
available at <https://researchictafrica.net/2019_after-access-steps-and-issues-in-the-privatisation-of-the-
telecommunication-sector-in-ethiopia/ >.
8
Chapter 2
26
Special Message on Protecting the Consumer Interest, Statement read by President John F Kennedy Thursday, 15
March 1962.
Available at : < https://www.jfklibrary.org/asset-viewer/archives/JFKPOF/037/JFKPOF-037-028 >.
27
United Nation Conference on Trade and Development Manual on Consumer Protection, The United Nations
Guidelines for Consumer Protection (2016) Section V 13(A) and Art. 14.
28
United Nations Conference on Trade and Development, Manual on Consumer Protection, (edn.2016) 23.
9
2.2. Protection of Telecom Consumers
2.2.1. Telecom Consumer Defined
The definition of consumer is helpful in clearly delineating the scope of consumer rights. There
is no universally accepted definition for the consumer. Different consumer laws, be they criminal
or civil, try to define the term consumer according to their respective legislative objectives. 29
The Black’s Law Dictionary defines a “Consumer” as “one who uses economic goods and so
diminishes or destroys their utilities; as opposed to a producer.”30 Particularly, a telecom
consumer is described as someone who uses or requests service for usage purposes and does not
have a contractual relationship with the provider. 31 Another Author defines the term "consumer"
in telecommunications as the ultimate beneficiary of all members of society.32 As a result,
consumer protection covers a fairly broad spectrum, large enough to assure universal service and
small enough to ensure contract conditions. 33 A subscriber who agrees to the contract term for
his or her personal use or the personal use of others qualifies as a telecom user.
29
Peter Cartwright, Consumer Protection and the Criminal Law: Law, Theory and Policy in the UK (Cambridge
University Press 2004) 2.
30
Black’s Law Dictionary, (4th edn., West Publishing Co.1968).
31
Newman, (n 7), 494.
32
Li Enhan, ‘Competition and Regulation in Telecommunications Industry’, (DPhil Thesis, University of Barcelona
2016) 32.
33
Ibid.
34
Jeannie Marie Paterson and Jonathan Gadir, 'Looking at the Fine Print: Standard Form Contracts for
Telecommunications Products and Consumer Protection Law in Australia' (2013) 37 UW Aust. L Rev 45.
10
vulnerable in various ways.35 Second, the sector involves dynamic technological innovation, and
even operators cannot predict potential future innovations. As a result, the impact of
technological innovation on consumer behavior and the possibility for service challenges needs
safety and regulation.36 Third, telecommunications operators are obligated to provide their
customers with professional, high-quality, and reliable services. Fourth, the sector is of great
significance to the government because it affects nearly every state's socioeconomic and political
affair. Fifth, telecom companies have access to consumers' sensitive personal information both
during and after the service contract. Offenders can intercept user communications.37 The
majority of countries have made unauthorized phone interceptions illegal to preserve the use of
telecommunications networks. The implementation of emerging technology presents a challenge
in preventing unauthorized access to personal information, cybercrime, and network security
threats.38 States need to have special care for consumers.39 Sixth, telecommunications is a
network market with many sunk costs and investments.40 During operations, the incumbent
operators require a substantial profit margin. Telecom companies can take advantage of their
considerable market power and take advantage of the market structure.41 Customers are exposed
to acquiring expensive telecom services due to a lack of alternatives and poor service efficiency.
35
See United Nations Guidelines for Consumer Protection 2016, Sec. III, No.5(b).
36
Stevens (n 2) 6-7.
37
Franck Leprévost, ‘Encryption and Cryptosystems in Electronic Surveillance: A Survey of the Technology
Assessment Issues’ (April 1999) European Parliament Directorate General for Research The STOA Programme.
< http:// www.itu.int/ITU-D/cyb/cybersecurity/legislation.html. > accessed 28 March 2021.
38
We refer Section B (35) of ‘Declaration of Principles Building the Information Society: a Global Challenge in the
New Millennium’ (World Summit on the Information Society, Geneva 2003 - Tunis 2005).
Available at : < https://www.itu.int/net/wsis/docs/geneva/official/dop.html >.
39
Ibid.
40
Leprévost (n 37) 12.
41
Newman (n 7) 493.
42
Available At: < https://www.itu.int/pub/D-STG-SG01.18.2 >.
11
2.3. Consumer Protection Rationales in the Telecommunication sector
Three key factors contribute to the need for sector-specific consumer rights in the telecoms
industry.
Firstly, telecommunication services are regarded as such an essential aspect of people's lives that
steps have been taken to ensure that they are available to them and not prevented from utilizing
them.43
The second factor is that certain consumer characteristics necessitate additional safeguards.
Protecting specific kinds of consumers, such as those vulnerable or experiencing financial
hardship, is one of the unique demands of telecom consumer protection.44 The sector must ensure
that vulnerable consumers have equal access to and use telecom services and equipment.
The third factor is the protection of consumers' economic interests. Consumers in the
telecommunications business require competitive pricing that is proportionate to the quality of
service and alternative options. Consumers are frequently in a weaker position than providers
when it comes to safeguarding their rights and interests, typically due to a lack of information,
expertise, and skills, as well as the influence of external forces and other factors.45 Consumers
cannot read and evaluate all of the conditions of standard form contracts, and they lack the
bargaining power to defend themselves against unfair conditions throughout the bargaining
process.46 Telecom operators have a competitive advantage in terms of infrastructure, finance,
and technological capabilities.47 Consumer protection laws are crucial in restoring bargaining
power in the market.48
43
Newman (n7) 492.
44
Christopher Decker, ‘Consumer Protection Frameworks for new Energy Products and the Traditional Sale of
Energy in Australia’, (Australian Energy Market Commission, March 2020), 58.
45
Available at : < http://lawtimesjournal.in/the-concept-of-and-need-for-consumer-protection/ > accessed 15
October 2020.
46
J M Paterson, ‘Looking at the Fine Print: Standard Form Contracts for Telecommunications Services and
Consumer Protection Law in Australia’ (2014) University of Western Australia Law Review 51.
47
Ibid.
48
Hilda Mwaka, ‘Consumer Protection in the Telecommunication Markets in the Post Liberalization Era- the Case
of Tanzania’ (PhD Thesis, University of Waseda March 2017) 67.
12
agreements and dispute resolution, telecom service quality, vulnerable consumer groups, and
consumer privacy and data protection.
The International Telecommunication Union (ITU) broadly defines universal service as referring
to a telephone for every household, 54 whereas universal access refers to a publicly available
telephone (not necessarily in one’s home), which might be provided through payphones,
telecentres, multi-purpose community centers or other community-based centers.55
Understanding the difference between the terms is important, yet the objectives underlying both
are similar. In particular, the focus of such policies is to ensure the provision of services to rural,
remote, and lower-income users who would not, in the absence of such policies, be served. 56
49
See e.g. Mark Warchauer, Technology and Social Inclusion: Rethinking the Digital Divide, (The MIT Press, 2004)
8 and 11.
50
Ian Walden et-al., ‘Regulatory Regimes The Telecommunications Regime in The United Kingdom’, in Ian
Walden(ed.), Telecommunications Law and Regulation, (5th edn, Oxford University Press 2018) 135.
51
HishamTahat, ‘ITU Regional Workshop on Competition in Telecommunications Market’ (Consumer Protection
and Universal Access in Telecom, Khartoum-Sudan, 24-26 May 2016).
52
EU Policy and Law on Universal Service Oftel, ‘Universal Telecommunication Services’ (July 1999) Chapter 4,
Sect. 4.8.
53
Tahat (n 51).
54
H Intven ‘Module 6: Universal Service’ in Intven H and McCarthy Tetrault (eds.), Telecommunications
Regulation Handbook (McCarthy Tetrault LLP,World Bank, 2000) 6-1.
55
Ibid.
56
Ibid.
13
Further, universal service and universal access are regulated in order to permit full access to
modern technologies, to promote economic development, and to eliminate disparities between
rural and urban areas57 and, in South Africa, to eliminate disparities between racial groups.
The general consumer protection legislation was used to enhance consumer care when
purchasing telecommunication services, specifically by prohibiting misleading actions,
promoting equal contract terms, and encouraging contract transparency. 60 Consumer protection
rules for telecommunications products were enacted to address issues of particular concern to
users of telecommunications products and are not adequately addressed by more general
legislation. 61 Consumer protection regulations, both general and industry-specific, are used to
assist consumers in meeting their equal and equitable treatment requirements while contracting,
choosing between various telephone service providers, and encouraging competition in the
telecommunication sector.62
57
Ibid., 6-3.
58
Ian Walden(ed.), Telecommunications Law and Regulation, (5th edn, Oxford University Press 2018) 21.
59
Fikremarkos Merso et-al., Review of the Legal and Institutional Framework for Market Competition in Ethiopia,
(Addis Ababa Chamber of Commerce and Sectoral Associations 2009) 13.
60
Consumer Protection Digests and Case Studies: A Policy Guide, Vol. 1 (Association of Southeast Asian Nations
November 2014) 39.
61
Ibid.
62
Ibid.
63
Solli (n 4).
14
post-contractual periods, the legislator will enforce consumer regulations. 64 Unfair terms
regulation protects customers from unbalanced and burdensome terms that are not reasonably
appropriate to protect operators' legitimate interests. Many countries' consumer protection laws
contain provisions to protect consumers from unfair contract terms. These vary from broad
prohibitions against unfair terms to specific prohibitions against specific types of terms that have
a negative effect on customers, such as certain types of exclusion clauses,65 termination clauses,
and variance rights.66
Disagreements between telecommunications customers and service providers can arise due to
complaints about service billing, service charges, payment of charges, slamming, privacy,
efficiency, service terms, and advertising.67 In dealing with such conflicts, regulatory approaches
may be proactive or reactive. 68 In this situation, sectoral conflict resolution schemes are intended
to correct an unavoidable disparity between the parties while also facilitating consumer access to
justice. Consumer alternative dispute resolution has recently become available, and disputes
between consumers and entrepreneurs are unique enough to warrant using Alternative Dispute
Resolution (ADR) approaches specifically for this type of dispute. Resolving consumer business
issues in court is both expensive and time-consuming. Formalized judicial processes,
involvement, trials, and attorney costs usually turn off consumers. As a result, consumers are
more likely to turn to an ADR organization to resolve their issue quickly, cheaply, and without
unnecessary red tape.69
64
Ibid.
65
See e.g. Brunei Unfair Contract Terms Act 1999 ss3-6;
Malaysia Consumer Protection (Amendment) Act 2010 s 24D.
66
See e.g. Indonesia Law on Consumers’ Protection 1999 Art. 18.
67
Robert R. Bruce, Rory Macmillan and etal, ‘Dispute Resolution in the Telecommunications Sector: Current
Practices and Future Directions’, (The International Telecommunication Union and The World Bank 2004), 40.
Available at:
<https://www.google.com/url?sa=t&rct=j&q=&esrc=s&source=web&cd=&cad=rja&uact=8&ved=2ahUKEwiOz9fo
7fzwAhUPLBoKHbonC7EQFjAAegQIAhAD&url=https%3A%2F%2Fwww.itu.int%2FITU-
D%2Ftreg%2Fpublications%2FITU_WB_Dispute_Res-E.pdf&usg=AOvVaw0NKUwNiJO4uM65Q4lS47ql > .
68
Ibid.
69
Jagna Mucha, ‘Alternative Dispute Resolution for consumer disputes in the EU: Challenges and Opportunities’,
(2015) 28 Queen Marry L J 31.
15
2.3.1.4. Consumer Protection in Telecommunications Quality of Service
Service quality is often described as measuring how well the standard of offered services meets
or exceeds consumer expectations. 70 Quality of Services (QoS) objectives include maintaining a
fundamental minimum standard of quality, ensuring that consumers have a range of quality
options, and encouraging consumers to prioritize quality over price.71
QoS regulation is a type of consumer protection that enables consumers to understand the quality
of service provided by telecom operators/Internet Service Providers (ISPs) through networks
(mobile and fixed) and make their judgments.72 In addition, consumers should understand the
essence of the services, including costs and how they are measured, and the standard of service
offered. 73 QoS regulation may include establishing and updating minimum service quality
requirements and specifications for emerging technology and systems on a regular basis, testing
network service providers, and evaluating telecom/ICT services on a regular basis. 74
PWD shall have equal access to, use of, and compliance with telecom facilities and equipment.
As a result, PWD is given special protection, requiring service providers to make their goods and
services accessible, compatible with peripheral devices, and equipped with appropriate client
70
Jessica Santos, ‘E-service Quality: a Model of Virtual Service Quality Dimensions’, (2003) 13 No.3 Managing
Service Quality: An International Journal 233-246.
71
Telecommunication Development Bureau (BDT), ‘Quality of Service and Quality of Experience Regulation’,
(ITU World Telecommunication Development Conference, Buenos Aires Argentina, 9-20 October 2017.
72
ITU-T E-Series Recommendations, Supp. 9 (12/2013) to ITU –T E.800- series Recommendations (Guidelines on
regulatory aspects of QoS) of E.800 Series.
73
Available at : < https://www.itu.int/en/ITU-D/Conferences/GSR/Pages/gsr2014/default.aspx> .
74
Ibid.
75
ITU-D Study Group 1, ‘Telecommunication/Information and Communication Technology Accessibility for
Persons With Disabilities and Persons With Specific Needs’, (2014-2017) 43.
Available at: < www.itu.int/ITU-D/study-groups >.
16
premises equipment.76 This special interest includes hardware and software, mobile network
technology, and telecommunications equipment used in the home or business. Callers can choose
from a menu of basic and specialized telecommunications services such as regular phone calls,
call waiting, caller identification speed dialing, call forwarding, and so on.77
Telecom operators must develop and publish a comprehensive privacy policy that limits
employee access to customer information and establishes requirements for those who need to
know and impose mandatory confidentiality agreements with their employees, vendors,
representatives, and agents.83 Operators must commit to greater transparency in data collection,
obtain customers' consent via opt-in before sharing their data, and give users the option to
explicitly decide the nature of their communications (public or private). Users should make
informed decisions about how much of their data is accessible to others and how third parties use
76
Resolution 175, ‘Telecommunication/information and communication technology accessibility for persons with
disabilities and persons with specific needs’, (The Plenipotentiary Conference of the ITU, Rev. Dubai, 2018).
77
Edward L. Myers III, ‘Disability and Technology’ (2004) 65 Mont. L. Rev 290.
78
Walden(ed.) (n 50) 650.
79
Kinfe Micheal Yilma and Halefom Hailu, ‘The Internet and Regulatory Responses in Ethiopia: Telecoms,
Cybercrimes, Privacy, E-commerce, and the New Media’ (2015) 9 J Ethiopian L 108.
80
Walden(ed.) (n 50) 651.
81
Ibid, 652-653.
82
Festus O. Ukwueze, ‘Consumer Protection in the Regulation of Telecommunications Services in Nigeria: Not Yet
“Uhuru” for Consumers’, (2014) 12 The Nigerian Juridical Rev. 125.
83
Tahat (n 51).
17
the data.84 Unless otherwise, operators and third-party suppliers are forbidden from using
consumer telecom service numbers for advertising or unsolicited telemarketing.
If a country has both a competition and a business regulator, the regulatory framework must
resolve any conflicts of jurisdiction and ensure that regulatory approaches to anti-competitive
behavior and consumer regulation are consistent throughout both regimes.85 Prescriptive and
principles-based regulatory approaches are used to create consumer protection regulations.
Different types of "hybrid" systems, which incorporate elements of each approach to regulation,
are commonly used in practice.86
The rules of consumer protection envisaged in the TFEU are changing very often.88 However,
the meaning of this rule still causes the interpretative difficulties. The European Commission
aims to begin consumer protection under Article 114 TFEU with a high level of protection.
However, the consumer protection was not still included to the single policies of the EU and the
“consumer” is not clearly defined by the legal definition. There is no consistent and uniform
definition of consumer in EU law and there are also divergences amongst the Member States,
partly as a result of transposing EU directives into national legislation. In the current EU
consumer acquis each EU instrument defines the notion of consumer separately for its own
purposes.
84
ITU-D Study-Group 1 (n 1) 102.
85
Ann Buckingham. etal, ‘Telecommunications Reform in Emerging Markets’, in Ian Walden(ed.),
Telecommunications Law and Regulation, (5th edn, Oxford University Press 2018) 860.
86
Decker (n 44) 48.
87
Consolidated Version of the Treaty on the Functioning of the European Union (TFEU) 2012, Articles 4(2)(f), 12,
114(3), and 169.
Available at: < http://data.europa.eu/eli/treaty/tfeu_2012/oj >.
88
Ibid, Art.169.
18
By the wording of the Article 169 (2a) of the TFEU, it cannot be used as a self-base for the
adoption of legally binding rules, either directives or regulations. Its role consists in development
of the internal market together with the Article 114 of the TFEU by the harmonization legal
binding rules. In concerns of consumer protection, Article 114 of the TFEU can also be used as a
self–base for the adoption of legally enforceable measures in the absence of Article 169 of the
TFEU. It seems Article 169 (2a) of the TFEU has the only formal function.
On the other hand, Article 169 (2b) of the TFEU is problematic in its interpretation. Only the fact
that the measures can be taken through the ordinary legislative procedure is clear from the
wording of Articles 169 (2b) and 169 (3) of the TFEU; that is, legal binding actions for consumer
protection can be adopted. The European lawmaker has a duty to create or leave an area for
lawmakers of the Member States to adopt or to maintain stricter national legal rules.89 The
interpretation of the Article 169 (2b) of the TFEU raised the question of what the terms
"support," "supplement," and "monitor" meant. The article has only function to support,
supplement or monitor beside the legislative activities of Member States in consumer protection.
A contrario, its role is only to support, supplement or monitor their policies in consumer
protection, but not to harmonize or to change their legal rules. The uncertainty of these words
causes that Article 169 (2b) of the TFEU has been not very often used as a legal base for EU
secondary legislation. the Article 169 of the TFEU represents the consumer policy as one of the
single policies of the EU, but this article is not a self–base for adoption of EU secondary law in
the consumer protection matters per se.
In EU, the consumer protection is realized by the EU secondary law both through regulations or
directives but, the legal basis of the law of consumer protection has to be in the EU primary law
which seems not yet.
Under the provision of Title III, the European Union Electronic Communications Code
(EUECC)((Recast) (EU) 2018/1972) enshrines regulations concerning end users' rights in
communication services. The National Regulatory Authorities (NRAs) have three major
89
Ibid, Art.169(2b) and (4).
19
responsibilities,90 the most basic of which is consumer protection, which includes six primary
elements of consumer concerns in general. 91
The first telecom consumer issue in the EU is access rights, which include receiving traditional
telephony and internet services (over-the-top services) from a provider. Member States shall
ensure that all consumers in their territories have access at an affordable price, in light of specific
national conditions, to an available adequate broadband internet access service and to voice
communications services at the quality specified in their territories, including the underlying
connection, at a fixed location.92 Number portability is seen as a key facilitator of consumer
choice and effective competition. The EUECC sets out requirement that providers of electronic
communications networks and services must not apply any discriminatory requirements or
conditions of access or use on end- users based on nationality or place of residence unless such
differences are objectively justified. 93 This considers the fundamental rights of consumer
enshrined by the Charter of Fundamental Rights of the EU.
The EU Universal Service Obligations Directives have been found to serve the duties of
delivering public services and protecting vulnerable customers by ensuring access, reliability,
and quality of service. The internet is critical for education, freedom of speech, and information
access. A USO, according to scholars such as Finger and Finon (2011), is a “means to shield the
poorest people from market liberalization.” 94 The new EUECC guarantees that all people have
access to affordable communications facilities and the availability of services such as universal
internet access.95 This code benefits and protects end consumers that interact with traditional
(phone calls, SMS) or web-based services. In the EU, the NRAs have legal obligations to ensure
90
Regulation (EU) 2018/1971 of the European Parliament and of the Council of 11 December 2018 Establishing the
Body of European Regulators for Electronic Communications (BEREC) and the Agency of Support for (BEREC
Office), Amending Regulation (EU) 2015/2120 and Repealing Regulation (EC) NO 1211/2009 Text With EEC
Relevance
Available at: < http://data.eu/eli/reg/2018/1971/oj >.
91
Directive (EU) 2018/1972 of the European Parliament and of the Council of 11 December 2018 establishing the
European Electronic Communications Code (Recast)Text with EEA relevance.
Available at: < http://data.europa.eu/eli/dir/2018/1972/oj >.
92
Ibid, Art. 84-86.
93
Ibid, Art.99.
94
Matthias Finger and Dominique Finon, From the “Public Service” Model to the “Universal Service” Obligation,
(Edward Elgar publisher 2011)10.
Available at:< http://www.centrecired.fr/IMG/pdf/Finger_Finon_Public_service_Universal_service.pdf >.
95
European Electronic Communications Code (n 91) Art. 108.
20
adequate access and interconnection, and interoperability of services. 96 In particular, NRAs may
impose access- related conditions to ensure end- to- end connectivity, and to ensure accessibility
for end- users to communications service. However, the EUECC doesn’t put the minimum levels
of quality and bandwidth that internet services must deliver and fails to show complying the net
neutrality obligations under the regulation 2120/2015. Hence, the code’s approach is desirable
and better approach that limits the full harmonizing provisions and when necessary, insert
opening clause to allow that national rights and measures can be maintained.
According to EU law, consumers also have the right to bundled service packages that include
internet connectivity or a publicly accessible Number-Based Interpersonal Communications
Service (NB-ICS).97 Consumers can quickly switch service providers while keeping the same
phone number, and they can receive reimbursement if the process fails or takes too long.98
The second European telecom consumer concern is consumer protection in competitive telecom
markets. The introduction of competition in telecommunications is seen as being generally
beneficial to consumers in terms of choice, cost, and quality. In EU, the continued inclusion of
consumer protection measures in the light of competition law is justified in two ways. Primary,
competition alone may not be enough to satisfy the needs of all citizens and protect users’ rights.
Additional protections are needed, both in the form of the universal service, and in the form of
consumer protection laws that help to balance the respective bargaining positions of consumers
and the companies with whom they contract. Consumer protection law also plays a role in
stimulating competition. Most EU measures are focused on stimulating competition from the
supply- side, but consumer protection measures help to stimulate competition from the demand-
side.99 Competition rules work in collaboration with sector-specific regulations to provide
innovative and affordable services to European consumers. 100 The EU is committed to
maintaining robust competition and considers that competitor defense is essential for consumer
welfare. Ex-ante access regulation, combined with competition law compliance, has been crucial
in ensuring that EU telecommunication markets are more competitive, allowing customers and
96
Ibid, Art.61(b).
97
Ibid, Art.107.
98
Ibid, Art.106.
99
Newman (n 7) 494.
100
Available at: < https://ec.europa.eu/competition/sectors/telecommunications/overview_en.html >.
21
businesses to benefit from more options, lower costs, higher quality, and creative services. 101
Beyond the strict intent of competition policy, telecoms providers are subject to more stringent
control than other participants in the value chain. 102
Thirdly, the European telecom consumer issues cover contractual agreements and dispute
resolution. The EU law establishes information requirements for telecom service contracts that
customers must have, although it is unclear if the obligation is for pre-contractual or contractual
information. 103 Provisions that require communications providers to publish information about
their services enable end- users and consumers to make informed choices about the services they
plan to purchase, and back up the provisions on what must be included in contracts. 104 Telecom
service providers must give information on their business model, consistency, transparency, up-
to-datedness, clarification, user-friendliness, and other aspects that customers use to make
comparisons. According to Art.103 of the recent EUECC (2018/1972), public interest
information is a comparative tool for electronic communications services, including number-
independent interpersonal communications services. Another safeguard for telecom customers is
fair and unambiguous contract termination terms. Consumer rights are included in EU law as a
means of controlling demand and accumulating unused credit. To prevent end-users from bill
shock, measures on usage caps are added in the preamble, section (266) of the current EUECC
(2018/1972). EU enacts provision on bundled offers intended to avoid unwanted lock- in effects,
so that adding on additional services to a bundle cannot restart the overall contract period unless
a special promotional price is available only on conditions that the existing contract period is
restarted.
101
Ibid.
102
Finger and Finon (n 94).
103
European Electronic Communications Code (n 91), Art.102.
104
Ibid, Art.20 and 21.
105
Newman (n 7) 524.
106
Mucha (n 69) 32.
22
legal professionals with an in-depth understanding of the law and a dedication to fundamental
fair process ideals are thought to be the best persons to manage mandatory consumer rights. 107
The ADR has been adopted by a number of European countries as well as Organization for
Economic Co-operation and Development (OECD) countries. Online Dispute Resolution is
another complaint tool allowed by regulators, mainly in the EU. The Online Dispute Resolution
system helps you to complete all or part of the complaint process online.
Fourthly, the EU adopts laws governing the availability and efficiency of internet access
facilities and publicly available interpersonal communication services. 108 Service providers must
compete on both price and quality of service, and they must meet their consumers' requirements
and demands in both areas. NRAs are under a requirement to specify QoS parameters on
communications providers. In doing so, they have to take account of guidelines to be produced
by the Body of European Regulators for Electronic Communications. NRAs would also have to
specify the applicable measurement methods and the way the information should be published
including possible quality certification mechanisms. NRAs can, where appropriate, use the
parameters, definitions, and measurement methods set out in the Annex.
Fifthly, the EU takes into account the special rights of disadvantaged consumers and protects
PWD in particular. The European Commission's initiatives are focused on supporting the most
disadvantaged consumer groups, who are the least capable of switching their existing service
provider or gathering and evaluating the different service offers available to them. In terms of
disabilities, the new code ensures that end-users with disabilities have equal access to
communications, and as a result, operators are improving accessibility for disabled customers. 109
The sixth and final telecom consumer right relates to data protection and privacy issues. The
General Data Protection Regulation is the appropriate data protection regulation in the EU to
give effect to Article 8 of the EU Charter of Fundamental Rights. It includes rules about the
processing of personal data. These rules apply to data processing without the permission of the
data topic. The current EU e-privacy laws, on the other hand, are more restricted. Many of the e-
privacy Directive's provisions only extend to providers of publicly accessible electronic
107
Horst edinmuller and Martin Engel, ‘Against False Settlement: Design in Efficient Consumer Rights
Enforcement Systems in Europe’ (2014) 29 ohio State Journal on Dispute Resolution 269.
108
European Electronic Communications Code (n 91), Art. 104 and Art.108.
109
Ibid, Art.111.
23
communications networks and facilities. The EU data protection regime forbids data transfers
from EU member states to third-party countries unless the third-party country meets an
acceptable data protection requirement.110 The Directive on privacy and electronic
communications (PEC) harmonizes the provisions of the Member States required to ensure an
equivalent level of protection of fundamental rights and freedoms, and in particular the right to
privacy, with respect to the processing of personal data in the electronic communication sector
and to ensure the free movement of such data and of electronic communication equipment and
services in the Community. The Directive also address state interference in two provisions. First,
Member States are required to ensure the confidentiality of communications and related traffic
data, by prohibiting ‘listening, tapping, storage or other kinds of interception or surveillance of
communications’. 111 Under the PEC Directive, service providers are required to establish internal
procedures for responding to data requests by law enforcement Agencies (LEAs).112 In addition,
data about the number of requests made by LEAs, the legal basis for the request, and the service
provider’s response should be reported to a competent authority, to enable oversight of the
exercise of these LEA powers. This provision implies that any data obtained from service
providers must be mediated through the service provider, rather than permitting Law
Enforcement Agencies direct access to a service provider’s network.
Data security is also recognized as being integral to the position of telecommunication networks
and services as critical national infrastructure, on which users and interconnected networks are
highly dependent.113 Under the PEC Directive, the general obligation to maintain security
measures is repeated and elaborated upon in respect of providers of ‘publicly available electronic
communication services’.114 The security obligations on service providers includes a security
breach notification requirement. 115
110
Ann Buckingham. etal. (n 85) 889.
111
Directive 2002/58/EC of the European Parliament and the Council of 12 July 2002 concerning the Processing of
Personal Data and the Protection of Privacy in the Electronic Communications Sector (Directive on Privacy and
Electronic Communications, Art.5(1).
Available at: http://data.europa.eu/eli/dir/2002/58/oj .
112
Privacy and Electronic Communications (PEC) Directive, at Art 5(1b), inserted by Directive 2009/136/EC
(Citizens’ Rights’), Art 2(9), OJ L 337/ 11, 18 December 2009.
113
Privacy and Electronic Communications (PEC) Directive, Art. 4(1)).
114
Ibid.
115
Ibid, Art. 4(2)).
24
2.4.2. Telecom Consumer Protection in the South Africa Law
Telecom consumer protection in the south Africa are composed of legislation, regulatory
frameworks and standard setting. The Republic of South African Electronic Communications
Act (RSAECA) No.36/2005 governs consumer concerns in the electronic communications
industry. One of the RSAECA's main goals is to promote and protect consumers' interests in
terms of price, quality, and variety of licensed services.116 The Act contains an entire chapter
devoted to “Consumer Issues”, dealing with a “code of conduct, an end-user and subscriber
service charter”, “people with disabilities” and the establishment of a “Consumer Advisory
Panel”. 117 The term "end-user" is defined in RSAECA as a subscriber and those who use the
services of a licensed provider referred to in Chapter 3 of this Act. Under this act, subscriber also
further defined as a person who lawfully accesses, uses or receives a retail service of a licensee
referred to in Chapter 3 for a fee or the retail services of a person providing a service pursuant to
a license exemption. Thus, the resale of telecoms services is permitted. A reseller of telecom
service is exempted from the requirement to obtain a license and is required only to submit a
notification to ICASA. A reseller who uses or receives telecom service of a licensee is an end
user and eligible to exercise consumer legal rights.
Depending on the extent of its mandate in the enabling legislation, ICASA have the power to
create its own consumer frameworks by issuing regulations. ICASA is a licensing body, a
regulator and a quasi-judicial body because it licenses, regulates, adjudicates and issues
sanctions. The primary object of the ICASA Act of 2006 (ICASA Amendment Act) was to
provide for the regulation and control of telecommunication matters in the public interest. It
sought, among others, to promote the universal and affordable provision of telecommunication
services. The Authority has subsection named as consumer affairs division which is responsible
for protecting consumers from unfair business practices, ensuring access to safe and good quality
products, and protecting the interests of people with disabilities in relation to the provision of
communications.
116
Republic of South Africa Electronic Communications Act No.36/2005, Art. 2(n).
117
Ibid, Chapter 12.
25
produce and submit a Code of Practice, which has to be reviewed and approved by the Authority.
The Service Charter stipulates service level agreements, responsibilities and rights of each party,
and procedure for resolving disagreements whenever they arise between parties. 118
In general, the ICASA’s code of ethical conduct contains essential obligations requiring
telecommunications licensees to ensure consumer rights and interests. Provision of information
to consumers (Art.4), Advertisement and representation of services (Art.5), consumer billing,
charging, collection and credit practices(Art.8), consumer obligations, protection of consumer
information, complaints handling (Art 12), code compliance (Art.17) are the basic obligations
underpinning on telecommunications licensees.
Below based on each consumer issues on the sector examination on the relevant legislations will
be conducted.
The first telecom consumer issue in the South Africa is telecom universal service and access
rights. This country governs universal service and access to enable full access to modern
technology, encourage economic development, and narrow the gap between rural and urban
areas.119 The Universal Service and Access Agency of South Africa (USAASA) is established
under the RSAECA to promote the goals of universal access and universal service in the under
serviced areas of South Africa. 120 Licensees are required to contribute to the Universal Service
and Access Fund (USAF) which is intended for use in incentivizing and subsidizing the roll-out
of electronic communications networks in under-serviced areas
There are three pillars to a Universal Access and Service (UAS) policy, which are aimed at
ensuring the affordability, availability and efficiency of services. Chapter 14 (sections 80-91) of
the RSAECA contains the regulatory framework for achieving UAS in South Africa. Among
other things, it establishes the Universal Service and Access Agency (USAASA) of South
Africa, sets out how the Universal Service and Access Fund (USAF) should be administered and
empowers ICASA to prescribe various regulations required for the achievement of UAS,
including the Regulations in respect of the prescribed annual contributions of Licensees to the
118
End User and Subscriber Service Charter Regulations No. 39898/2016, Art.9 and Art.12.
119
Stevens (n 2) 6-7.
120
Republic of South Africa Electronic Communications (n116), Art. 80.
26
Universal Service and Access Fund (2011), Regulations on the definition of under-serviced
areas, and Regulations in respect of E-Rate.
Various efforts have been undertaken in the past to achieve UAS in South Africa, including
licensing operators in underserviced areas, establishing a Universal Service and Access Fund,
implementing an E-Rate regime for public schools and imposing universal service obligations on
licensees.
The Emergency Call Regulations also govern access to the public emergency operations
center.121 The E-rate regulations require licensees to offer discounted internet access to
colleges.122 The other issue is number portability, which is described as the country's declaration
of ICASA rules and regulations under the RSAECA. 123
The second consumer issue relates with consumer protection in market competition. In telecom
market, ICASA is responsible for promoting competition, innovation and investment in services
and facilities. 124 The Authority regulates the competition matters of communication services
which indirectly have positive impact to consumer interests to have alternative choice both in
price and quality of service on the sector.125 On the other hand, the End User and Subscriber
Service Charter Regulations amendment proposed by ICASA in 2018 aims to protect consumers
from unfair market practices and promote transparency. Anti-competitive practices are subject
both to ex ante regulation by ICASA in terms of the sector-specific communications legislation,
the RSAECA, as well as to general competition laws, which are implemented by the competition
authorities, the Competition Commission of South Africa and the Competition Tribunal. In
terms of the RSAECA, ICASA may impose specific pro-competitive conditions on telecoms
licensees who act in a manner preventing or lessening competition in a particular market through
undue preference or discrimination in relation to any other operator. ICASA may also, in terms
of regulations to be published under the RSAECA, designate a particular operator as having
significant market power (SMP) in a certain market. Pro-competitive conditions may also be
imposed on such operators. The country’s Consumer Protection Act No.68/2008 is a general
121
The ICASA Reg. No. 31230/2008.
122
The ICASA E-Rate Reg. No.31979/2009, Art.5.
123
The ICASA Number Portability Reg. No. 41949 /2018.
124
Republic of South Africa Electronic Communications (n116), Art 67.
125
Ibid.
27
consumer protection statute that applies to telecommunications service providers.126 In the RSA's
telecoms market, the Competition Authority and ICASA have concurrent authority in
investigating consumer concerns. However, the precise mechanism for this has yet to be
identified, which contributes to both regulators' limited effectiveness. The Competition
Commission must recognize and remedy anticompetitive conduct, while ICASA is responsible
for implementing and enforcing ex-ante regulation.127 Consumer Protection Act No.68/2008
Section 5(1) (a) states it applies to all transactions occurring within the Republic unless they are
exempted by subsection (2) or in terms of subsections (3) and (4). Thus, ICASA or the National
Consumer Commission may be contacted with complaints about the provision of services
approved under the RSAECA. 128 A consumer may lodge a complaint with the Complaints and
Compliance Committee in electronic communications. Complaints adjudicated by the
Complaints and Compliance Committee include the exchange of information by voice, data, and
video transmission by electronic communications service licensees. Since the authorities' higher
officials are appointed by the government and the funding system is often associated with the
government, critics question the institutions' independence and impartiality. 129
The third issue of sectoral consumer protection in South Africa linked with contract terms and
dispute settlement mechanism. In RSA, telecom operators shall provide necessary details to
customers during the pre-contractual and post-contractual phases of their products/services.130
All licensee and its agents must inform an end user minimum standards on contract terms and
conditions, and consumer handling procedures at the point of sale, or prior to contracting. This
may help the country to protect the rights of end-users in the telecom sector mainly, providing an
end-user with sufficient information to enable informed decisions, ensuring the efficient and
effective resolution of complaints and facilitating redress to an end-user where appropriate.
Customer agreements are required to use plain and understandable language, and clearly indicate
the nature of the contract, the minimum duration of the contract, any payment for early
126
Republic of South Africa Consumer Protection Act 68/2008, Sect.5.1.
127
Helanya Fourie etal., ‘Regulatory Ambiguity and Policy Uncertainty in South Africa’s Telecommunications
Sector’, (January 2018) Economic Research Southern Africa working paper 729.
128
Republic of South Africa Electronic Communications Act (n 116) Sub-Sect 69 (5)(e) and 69(6) and Republic of
South Africa Consumer Protection Act (n 126) Sub-Sect. 5(1)(a) cum 5(3).
129
Lisa Thornton, ‘Telecommunication Laws and Regulations in South Africa’, in Caroline Blad (ed), ‘The
International Comparative Legal Guide to Telecommunication Laws and Regulations 2010’, (Global Legal Group
Ltd, 2010) 243.
130
End User and Subscriber Service Charter Regulations (n118), Art. 4(1).
28
termination and the notice period and manner in which notice must be given for termination of
the agreement. Operators are obliged to get confirmation from consumers for acceptance prior to
billing for subscription to third-party services. This will help consumers to have information for
their decision.
Consumers also have access to redress mechanisms, which are at the heart of consumer
protection legislation. In principle complaints shall lodge a complaint to the relevant licensee or
agent unless a licensee has failed to respond, or has not adequately responded to the complaint
within the prescribed period.131 Complaint may be referred to the Authority's ADR where a
licensee was not able to resolve the complaint. 132 Outcome of an ADR session is the final step in
the complaints resolution process facilitated by the Authority, unless non -compliance has been
recognized. The non-monetary penalty imposed to operators seems lenient and hardly protect the
interest of consumers since it does not include harsh measures such as Suspension,
revocation/cancellation of license. It only imposes the publication of non -compliance on the
licensee and the Authority's websites, awareness campaigns in national newspapers, radio and /or
television and additional platforms as determined by the Authority. 133
Consumer protection law, civil procedure, and other sectorial regulatory standards do not cover
all redress issues. Consumers may also file complaints with the Complaints and Enforcement
Committee about licensees.134 Complaints about the provision of ECA-licensed services can be
lodged with either ICASA or the National Consumer Commission in RSA. There is a code of
conduct that must be posted at the licensee's business premises and on its website that contains
the core obligations enumerated in the legislation to protect and promote customers' interests.135
The criteria specified in ICASA's regulation are used to assess the service provider's efficiency
and availability of services. 136
In regard to quality of service the country declares a code of conduct regulation intending to set
acceptable standards of conduct for licensees. This regulation safeguards the interests of
131
Ibid, Art.12(1) Cum Art.12(2).
132
Ibid, Art.13 (1).
133
Ibid, Art 18(3).
134
The ICASA Act No. 13 of 2000, Art. 17A.
135
The ICASA Reg. in Respect of the Code of Conduct for Electronic Communications and Electronic
Communications Network Services Licensees, 2007.
136
The ICASA End User and Subscriber Service Charter Regulations (n 118), Art. 9.
29
consumers in the electronic communications business. The End User and Subscriber Service
Charter Regulations of 2016 impose a wide range of licensee obligations to protect consumer
rights.137 Operators are duty bound to comply measurable parameters proclaimed by ICASA with
prescribed targets listed for service availability138, activation of services to qualifying service
applicants139, and parameters for fault clearance.140 The parameters are fixed services, fixed
wireless services, and mobile services. The prescribed targets are in percentile form with fixed
period of time. Consumers are legally entitled to a refund if they have not received services in
terms of a contract entered into with a licensee to which payment has already been effected for
the services. The service must be provided at no additional cost to an end -user.
Concerning disabilities, the state has incorporated the RSAECA's general requirements in section
71 and explicitly codified the Code for PWD Regulations No.37486/2014. The code regulates
nondiscrimination on the basis of disability and describes disability as " long-term or recurrent
physical, voice, hearing, or visual impairment" that does not include mental impairment. The
rules cover a wide range of topics, including access to commonly designed goods and services,
access to information, access to facilities, raising awareness, and dealing with disabled
complaints.
Basic standards for electronic communications services are prescribed which support to
translates voice to text and vice versa on calls made by people who are deaf or have a hearing or
speech impairment.141 For PWD, operators are required to give access to information, access to
special numbers for emergencies services, prioritizing an urgent need for repair, provide
customer service with trained employees who can communicate with PWD, access to facilities,
compliant process for all category of disabilities.
The country also designed rules on Privacy and Data protection of consumers. Section 2 of the
RSA Constitution (1996) provides that the entire information, communications, and technology
industry is subject to the Constitution regarding consumer privacy and data protection. Personal
information about customers must be gathered and retained by service providers. Interception of
Communications and Provision of Communication-Related Information Act is a data security
137
Ibid, Art.9.
138
Ibid, Art.9(1-2).
139
Ibid, Art. 9(4-7).
140
Ibid, Art.9(8-15).
141
The ICASA Code for PWD Regulations No.37486/2014, Art.5(1).
30
law in general terms. It forbids interception and tracking unless certain conditions are met.
Interception or provision of communications-related information without authorization is a
criminal offense punishable by fines and imprisonment.142 Telecommunications operators and/or
internet service providers are not duty-bound to provide information, inform customers,
disconnect customers whose rights may be infringed through file-sharing or other activities.
However, to maintain the legislative restriction of liability regarding caching, hosting, and
information location software, there is a duty to take down offending information upon receiving
a takedown notice under the Electronic Communications and Transactions Act 25 of 2002. In
RSA, VOIP services are treated the same as other voice services. The country also establishes
rules for internet or email communications, especially for marketing and advertising. Consumers
have the right not to be bound by unsolicited commercial communications. Unfortunately, there
is no definition of "unsolicited commercial communications" under the Electronic
Communications and Transactions Act. The Act does not protect unsolicited non-commercial
correspondence since it only includes unsolicited commercial communications. 143 Additional
shortcomings are to be found because protection is only afforded to consumers who are defined
as natural persons, leaving a gap for cases where companies and close corporations are involved.
2.5. General
2.5.1. Protection of telecom Consumers in the European Union
The EU regulatory structure for electronic communications networks and services serves as the
foundation for all national telecommunications laws in the EU Member States. It provides
general and technology-neutral rules applying to all electronic communications networks and
services covering fixed and wireless telecoms, data transmission, and broadcasting. In general,
EU Directives' telecom service-related consumer protection regulations comprise aspects of both
principle and prescriptive laws and are eventually implemented by domestic legislation in EU
member states.
Existing telecom consumer protection in the European Union can be summarized as follows:
align protections, including security requirements, for end-users of Over The Top service (OTTs)
with those of traditional telecoms providers, requires maximum harmonization concerning
142
ICASA (n 135), Art.2., Art.49(1) and Art.54.
143
Juana Coetzee, ‘The Electronic Communications and Transactions Act 25 of 2002: Facilitating Electronic
Commerce’, (2004) University of Stellenbosch STELL LR 509.
31
consumer protection provisions, which means that member states may not impose more, or less,
stringent provisions than those set out in the European Electronic Communication Code, specify
bundles of services that include an internet access service or publicly available NB-ICS must
apply certain consumer protection provisions to the whole bundle, enhance user rights during the
switching of internet access services and the porting of phone numbers, establish a universal
service, ensuring the availability and affordability of both broadband and voice communications,
strength the protection of citizens in emergencies, enhancing the security of networks and
services, and cap the price for intra-EU calls.
Consumers in the RSA are protected by both general and specific consumer legislation. 144 The
RSAECA (2005) is the foundation for all telecom consumer protection regulations, with the
primary purpose of supporting and protecting consumer interests.145 An entire section of the Act
is devoted to consumer issues, including requirements for a code of ethics, end-user and
subscriber service charter, PWD, and the establishment of a Consumer Advisory Panel (CAP).146
ICASA has issued a series of regulations aimed at promoting and protecting consumer rights.
ICASA has formed a CAP to provide advice on consumer issues. 147 Consumers in the
telecommunications industry may file a complaint with ICASA against any authorized electronic
communications service providers.148 Those complaints relate to the QoS and billing.
On the other hand, RSA is a signatory to the Southern African Development Community
(SADC) instruments, sub-regional agreements. The communication sector is among the SADC
priority services. The region's telecom objectives stipulate member states agree to develop
national telecom networks to provide reliable, effective, and affordable telecom services. These
ensure adequate, high quality, and efficient services responsive to the diverse needs of commerce
and industry found in the region, achieve universal service and enhance service
144
Republic of South Africa Consumer Protection Act 68/2008, Sub-Art. 5(1)(a);
Republic of South Africa Electronic Communications Act (n 116), Art. 69-71.
145
Isabelle Gross, etal., ‘Consumer Best Practices in The Telecoms Sector’, (University of the Witwatersrand,
Johannesburg, 2005) 7.
146
Republic of South Africa Electronic Communications Act (n 116), Art. 69-71.
147
Ibid, Art. 71.
148
For illustration Available at: < https://www.icasa.org.za/pages/telecommunications >.
32
interconnectivity. 149 The SADC region has a standardized regional telecommunications policy to
improve customer service and meet universal service targets.150 In terms of Universal Service,
RSA decides to establish a shared understanding of the service's parameters.151 To ensure
universal service provision, particular needs of PWDs, location, with an emphasis on rural needs,
and other pertinent problems are all taken into account while determining the parameters'
priority.152 Although Africa is divided into many regional blocs, only the countries of the SADC
and the Common Market for Eastern and Southern Africa have consumer security initiatives in
the telecoms market. In 2004, the SADC established policy recommendations for cross-industry
consumer protection. 153 In 2011, the guidelines for the telecommunications sector were
revised. 154 The new SADC recommendations on consumer protection are based on global best
practices.155 However, they lack information that represents the conditions that exist in specific
regions.
2.6. Conclusion
Various international consumer laws protect consumer rights in the telecommunications sector.
However, there is no universally accepted definition of the consumer. For this study, a
telecommunications user is defined as a person who contractually subscribes to a
telecommunications service for his or her own or another's personal use. The chapter identified
the distinctive characteristics of telecom consumers and several reasons why consumer rights and
interests must be protected. Telecom services have long been viewed as an essential means of
communication for consumer survival and general socio-economic well-being.
149
Protocol on transport, communications and metrology in the Southern African Development Community (SADC)
Region (2006), Chapter 10.
150
Ibid, Chapter 10, Art.10.2 a.ii(dd).
151
Ibid, Chapter 10, Article 10.3 b.
152
Ibid.
153
Available at :
<https://www.google.com/url?sa=t&rct=j&q=&esrc=s&source=web&cd=&cad=rja&uact=8&ved=2ahUKEwiIz8Ll
ve3vAhUMzYUKHbKaAlAQFjAAegQIAxAD&url=https%3A%2F%2Fwww.sadc.int%2Ffiles%2F2013%2F8969
%2F0505%2FFinal_SADC_Industrial_Develeopment_Policy_Framework.pdf&usg=AOvVaw2iGqZBjUShQt6_vb
RfCR50 >.
154
Available at:
<https://www.google.com/url?sa=t&rct=j&q=&esrc=s&source=web&cd=&cad=rja&uact=8&ved=2ahUKEwjmht7
bw-3vAhURy4UKHRrtCscQFjAAegQIAhAD&url=https%3A%2F%2Fwww.itu.int%2FITU-
D%2Fprojects%2FITU_EC_ACP%2Fhipssa%2FActivities%2FSA%2FCRASA%2FGuidelines%2520_abridged__v
2.pdf&usg=AOvVaw2WZ9ocPl8VoNwcFNXjuZ7u >.
155
Mwaka (n 48) 55.
33
Different countries approach safeguarding and defending telecom consumer interests differently,
and as a result, different rules are passed and enforced. Although consumer protection varies by
country, the thesis identifies six common consumer protection concerns in the sector. These are
consumer access, competition in the market, contractual arrangements and dispute settlement,
quality of telecom service, protection of vulnerable consumers, and privacy and data protection.
For each consumer concern, States prescribe protection mechanisms and safeguard the interests
of consumers. The chapter demonstrated EU and RSA consumer protection in the telecom sector
based on each consumer's common issue and offered explanations accordingly. In the EU,
telecom consumer protection includes advanced and detailed telecom laws and general consumer
legislation used for end customers. The RSA rules are adopted in the same manner. The country
enacts both general and sector-specific consumer laws in the industry. RSA is also a member of
the SADC, which contains regulations on consumer protection, telecommunications protocols,
and recommendations.
Finally, this chapter concludes by focusing on the sector's most important consumer protection
issues.
34
Chapter 3
While consumers need telecom service from the operator, they require adequate contractual and
pre-contractual information to make sure that they are well informed in their choice. Therefore, a
bridge should be built between consumers and participants in the telecommunication sector. In
addition, proper regulation is assumed to be in place to do so. The chapter considers general, and
sector-specific consumer protection legal instruments and data gathered through interviews with
relevant government departments. Building on the comparative study in chapter 2, this chapter
seeks to consider the laws of Ethiopia in what way the interests of telecoms consumers are
protected. It shows the main consumer rights in the telecom sector and the legal protection
afforded to consumers in Ethiopia's telecom sector based on each of these rights. Furthermore,
156
Yazachew (n 22) 61.
157
Lishan (n 25) 8-9.
158
Ethiopian Communications Service Proclamation (n 14), Art.19(1).
Investment Proclamation No1180/2020, Art.4(2).
159
Available at: < https://eca.et/2021/05/22/press-release-telecommunications-service-operator-license-award/ >.
35
the chapter argues and emphasizes significant loopholes and excesses in consumer protection in
the country's telecom sector.
All consumers of telecom providers might not be a subscribers who receive telecom service. An
‘end- user’ who has legal rights, as defined in Art.2(6) and Art.2(11) of the TCRPD
No.832/2021, only encompases users who are customers of the provider, and execlude those who
use a service with authority from the customer. Although a consumers such as family members
or employees of business person is someone who receives telecom network or service from the
provider, they are not considered as a customer and not eligible to exercise a number of sector
specific consumer- protection provisions.
The TCRPD does not state whether the services received are for personal use only or resale.
Nonetheless, by the words of Art.23(1) of the Directive, one can infer that a telecom user in
Ethiopia is anyone who uses or requests service for usage or trading. Thus, the resale of telecoms
services is permitted and reseller of telecom service is exempted from the requirement to obtain a
telecom service licence and is required only to submit a notification to ECA. This remarks a
great departure from the meaning of consumer envisaged under the general consumer law, and
retailer under telecom service is now considered as a consumer and have a legal protection by the
specail consumer law.
A "Consumer" under Ethiopian law is a telecom user who uses or requests a service and does not
include anyone who is not contractually bound to the service provider. A comparative look of
EU and RSA laws suggests that telecom consumer includes both customers of the provider,
whether natural or legal persons and those who use a service with authority from the customer,
36
known as end-users.160 Thus, Ethiopian law does not recognize all end-users as consumers under
telecom legislation, and end-users who are not subscribers of telecom providers (be it natural or
legal person) in Ethiopia have no legal rights to exercise consumer rights against operators if
they complain about telecom services.
Recognizing the advantages of privatization and a competitive market for Ethiopia's economic
and social development, the government has introduced competition in the telecommunications
industry. Ethiopia recently opened the telecom sector to private investors, and the competition-
based market system is expected to encourage and protect consumer interests. Privatization,
combined with competition, will assist Ethiopia's government in attracting foreign investors
capable of providing infrastructure services to improve consumer choices. 164
Such a market structure is expected to result in rapid network expansion, meeting customer
demand, and increasing service quality. According to Art.3(1) of the EthCSP, a distinct telecom
regulator is established to regulate the industry and promote healthy competition.165 It also
establishes consumer rights protection in the telecommunication sector for the first time and
serves as the foundation for various telecom consumer laws. In line with international trends,
Ethiopia's consumer laws in the telecom sector consider the particular characteristics of telecom
160
The European Electronic Communications Code Directive (EU) (n 91), Art. 2(13)- 2(15). And
See definitional parts of Government Gazette Republic of South Africa Electronic Communications Act
No.36/2005.
161
Ethiopian Communications Service Proclamation (n 14), Art.50.
162
Lishan (n 25) 8-9.
163
Ibid, 8.
164
Ibid, 15.
165
Ethiopian Communications Service Proclamation (n 14), Art.3(1).
37
consumers. They are thus designed to counter the power gap in bargaining power between
consumers and operators and social injustice, knowledge asymmetry, and transaction costs.166
Telecom consumers' rights and interests are protected by general and sector-specific legislation.
The EthCSP and the TCRPD are the primary legal instruments of telecom consumer protection.
The laws provide the minimum rights and protections that all telecom operators must include in
their code of conduct.167
Consumers of essential public services who do not have competitive options will require
regulatory protection for both pricing and service quality. 168 Universal service regulation is
required to capture network externality benefits that competitive markets cannot achieve and
implement important economic and social policy goals. 169 Voice calls, data, and SMS services
are considered basic communication services in Ethiopia, and operators must make such services
available to all citizens. 170
The ECA establishes, monitors, and enforces standards for universal access. Universal access
entails having access to affordable and high-quality telecoms services regardless of geographic
location. 171 Ethiopia has a fund for universal access. The Universal Access Fund Regulation
(DUAFR) No.11/2020, which at the time of writing is at a draft stage, imposes "Pay-or-Play"
and/or "Universal Access Levy" mechanisms. 172 Telecom operators shall not discriminate and
166
Ibid, Art.5 and Art.6(14).
167
Telecommunications Consumer Rights Protection Directive (n 15), Art.5(2).
168
W. H. Melody, ‘Policy Objectives and Models of Regulation,’ in W. H. Melody (ed.), Telecom Reform,
Principles, Policies and Regulatory Practices, (Technical University of Denmark, 1997) 22.
169
Id.
170
Telecommunications Consumer Rights Protection Directive (n 15), Art. 7(1-2)
The Draft Universal Access Fund Regulation No. 11/2020, Art.2(10).
171
Ethiopian Communications Service Proclamation, (n 14), Art.2(20).
172
The Draft Universal Access Fund Regulation No.11/2020, Art.2(6) and Art.2(13).
38
refuse services or provisions to any consumer. 173 Ethio-Telecom aims to meet universal access
and non-discrimination among consumers. 174 These technological services include audio, video,
and data content delivered via mobile, fixed-line, and internet networks. In practice, Ethio-
telecom invests heavily across the country to increase telecom connectivity, regardless of
population size or economic standards. This year, the operator will extend its basic
telecommunications service in rural and urban areas across the country. 175 Currently, the number
176
of data and internet subscribers has only reached 23.5 million and compared to the total
population, the access to data service is still inadequate. Customers who were interviewed lacked
a thorough understanding of their legal rights and responsibilities in relation to the operator.
Some customers are aware of their rights to receive QoS, a fast network link, a reasonable price
for services, and the ability to use phone calls, messaging, and internet services. 177 Others were
also unaware of how the laws covered them. 178
Consumers demand access to VOIP services. VOIP services provide consumers with the
opportunity to save money on telecom voice and SMS services. The EthCSP does not specify the
net neutrality rules for the use of VOIP. On the other hand, the Ethiopian TFOP No. 761/2012
does not outright forbid VOIP services. Instead, it prohibits the provision of unauthorized
telephone call services and the acquisition of such services from illegal providers.179 As telecom
subscribers, internet users shall access VOIP services from operators and retailers for personal
use. VOIP services in RSA are not regulated differently than other voice services, whereas, in the
EU, they are because VOIP technology differs from that used by the Public Switched Telephone
Network (PSTN).180 It will be appropriate to rewrite Ethiopian law in plain language to ensure
that VOIP regulation does not prevent consumers from accessing cost-saving services. Compared
173
Telecommunication Consumer Rights Protection Directive, (n 15), Art. 8.
174
Ethio-Telecom Establishment (amendment) Council of Ministers Regulation No. 480/2021, Art.5(1).
175
Interview with Mohammed Haji, Ethio-Telecom Chief Sales Division, (Addis Ababa, Ethiopia, 8 April 2021).
176
Available at : < https://www.ethiotelecom.et/ >.
177
Interview with Simret Tefera, Assistance Manager in Desalegn Seid Import Export PLC, (Addis Ababa, Ethiopia,
16 April 2021).
Interview with Dawit Hiwot, Manager of Dawit and Biniyam Building Construction Partnership, (Addis Ababa,
Ethiopia, 19 April 2021).
178
Interview with Tibebu Bekele, personal mobile user, (Addis Ababa, Ethiopia, 19 April 2021).
Interview with Adnan, Manager of Soft-Valley PLC, (Addis Ababa, Ethiopia, 16 April 2021).
179
Telecom Fraud Offense Proclamation No. 761/2012, Art.10(3) cum Art.10(4).
180
Phillippa Biggs of the Strategy and Policy Unit of the International Telecommunication Union (ITU), ‘The Status
of Voice Over Internet Protocol (VOIP) Worldwide, 2006’ (ITU workshop on “The Future of Voice”, 15-16 January
2007) 17.
Available at: < www.itu.int/osg/spu/ni/voice/papers/FoV-VoIP-Biggs-Draft.pdf >.
39
to the EU and the RSA laws, regardless of whether end-users connect through traditional (calls,
SMS) or web-based services, the EthCSP fails to support and protect consumers (Skype,
WhatsApp, etc.). Operators are not complying with net neutrality obligations.
The EthCSP also prescribes access rights to SNP under Art.28(2) but does not envisage
procedural details. Aside from introducing such rights, a minimum standard should be
established to ensure that subscribers' contracts can be easily terminated without burdensome
procedures or unjustified costs. Only mobile number subscribers have clear procedural rules that
protect their right to switch and port their number under Art.16 of Mobile Number Portability
Directive (MNPD) No. 831/2021. In the EU, switching and SNP rights include contract terms
that can be easily terminated without burdensome procedures and unjustified costs.181
Though interconnection matters are primarily regarded as business issues over which operators
bargain to set interconnection agreements,182 it is also a consumer telecom access issue.
Subscribers of different telecom operators simply cannot communicate with each other or
connect to services they require without adequate interconnection arrangements between telecom
operators.183 Ethiopia enacts interconnection rules to allow each end-user of telecom networks to
communicate with another telecoms network or service provider. 184 Telecom operators are
obligated to facilitate technical interoperability and interconnection availability requirements
adequately. 185
181
European Electronic Communications Code (n 91), Art.106.
182
Peter L. Smith and Bjorn Wellenius, ‘Mitigating Regulatory Risks in Telecommunications,’ Public Policy for the
Private Sector, Note No.189, (World Bank, Group, July 1999).
183
Yazachew (n 22) 82.
184
Telecommunications Interconnection Directive No. 791/2021, Art.3(4).
185
Ibid., Art.9 Cum Art.21 (1.e).
186
L. H. Gutierrez and S. Berg, ‘Telecommunications Liberalization and Regulatory Governance: Lessons from
Latin America Telecommunications Policy, Vol. 24(2000), 885.
40
The EthCSP institutional framework prescribes three different but related activities:
policymaking, service provision, and regulation. This proclamation, however, falls short of
establishing an institutional structure that clearly defines separate and distinct roles for
policymaking, regulation, and operational management. The regulator must be independent of
the government in its day-to-day operations and acts as a buffer between telecom operators and
the government, thereby ensuring the separation of functions. 187 However, the ECA's degree of
independence from political influence and control appears to be very low. The regulator's top
leaders and sector policymakers are both appointed by the country's Prime Minister (the
executive branch of the government).188 Political appointees serve on the operations
management, which reports to the Board. The situation demonstrates that no legal safeguards are
in place to protect the regulator from political influence. Furthermore, because the regulator may
be politically influenced, the operational independence of its activities toward the government-
owned telecom service provider (Ethio-telecom) can be called into question. Some academics
argue that the country's regulatory structure has failed to address investors' concerns about the
independence of regulatory decisions and the fair treatment of all market participants. 189
The EthCSP may not be free from any doubt in creating a regulatory institution free of political
influence in structure, finance, and decision-making. The arrangement implies that it may impact
the competition market, which indirectly affects consumer interests. This is because one can
raise the operational independence of the ECA’s activities toward the government-owned
telecom service provider (Ethio-telecom) become doubtful. ECA's financial independence is
questionable because the government allocates the institution's budget, and employees are hired
as civil servants.190 The financial matter results in inadequate resources for its proper function
and opens the door to corrupt practices. The degree of independence, enforcement powers,
neutrality, and mechanisms for resolving disputes among operators/between operators and
consumers remains in doubt.191 In comparison, the EU establishes a distinct regulator located
within the ministry in charge of communications but is separated from it. 192
187
Melody (n 168) 18-19.
188
Ethiopian Communications Service Proclamation (n 14), Art. 7(2) and Art.16.
189
Yazachew (n 22) 74.
190
Ethiopian Communications Service Proclamation (n 14), Art.17 (1-2).
191
Gutierrez and Berg (n 186) 885.
192
The European Electronic Communications Code Directive (EU) (n 91), Art.6.
41
Few telecom operators may abuse their dominant position, leaving consumers vulnerable to
exorbitant costs. When anticompetitive practices are prevalent in the market, market participants
will not tune to the interests of consumers. 193 Consumers would not have access to a broader
range of goods of higher quality at competitive prices. Because competition law aims to prevent
market actors from engaging in anticompetitive behavior, it would improve consumer
protection.194 The ECA ratifies laws to limit abuses of power, mergers, and other anticompetitive
activities, all of which are relevant to consumer protection.195 In Ethiopia, applying the
competition rule among operators presupposes better quality, lower prices, and more quantity.
These regulatory steps are also intended to boost firm competition. 196 Consumer protection law
aims to protect and promote customers' well-being by regulating the conduct of businesses,
especially in their dealings with them. 197 Consumer protection laws, such as the information
disclosure rule and the prohibition of misleading or deceptive ads, may also help to boost
competition.198 Well-informed consumers have a greater impact on the competitive process than
consumers who are not well-informed. In terms of regulation, The ECA provides requirements
such as that all licensees create a code of conduct that spells out consumers' rights. 199 Imperfect
information about product characteristics, imperfect information about market values, consumer
costs of accessing market information, and consumers with imperfect information about their
needs are addressed in the newly endorsed Directive. 200
Unlike the EU and the RSA, telecoms consumer protection in Ethiopia is mandated by sector-
specific regulator. The telecom industry competition and consumer issues institutional structures
are intertwined, and the regulator is the sole Authority. 201 In effect, the Trade Competition and
Consumer Protection Authority, which regulates market competition and consumer protection in
general, is specifically exempt from this sector and is not permitted to hear any relevant cases. 202
42
Consumer rights, both ex-ante and ex-post stages, are protected by the ECA. Decisions passed on
certain consumer cases by ECA are appealable only for legal matters to the Appeal tribunal. 203
The Appellate tribunal's decision is the last resort unless consumers may take their case for
review on the grounds of the fundamental error of law in the country’s High Court.204 This
decision shows that consumers have no other chance on the merit of fact right after the decision
of the ECA, which narrows down the rights of aggrieved consumers against the Authority.
The ECA's exclusive control over telecom consumer issues might stem from the fact that the
telecoms service market necessitates interference in price, efficiency which the general
competition Authority would find difficult to regulate. 205 The country is still in the process of
developing market competition, and telecom consumer issues require special regulation in the
sector at this time, so telecom providers are subject to more stringent regulations.
203
Ethiopian Communications Service Proclamation (n 14), Art. 40(3).
204
Ibid, Art.40(8).
205
See The Explanatory Note of the Ethiopian Communications Service Proclamation No.1148/11.
206
The Civil Code of the Empire of Ethiopia (n 8), Art.1678.
207
Telecommunications Consumer Rights and Protection Directive (n 15), Art.21.
208
The Civil Code of the Empire of Ethiopia (n 8), Art.1704-1706.
209
The Civil Code of the Empire of Ethiopia (n 8), Art.1675, and Title XV, Chapter One, Contracts Relating to
Assignment of Rights, Sale.
43
protections as buyers.210 According to the law, damages resulting from non-performance can be
sought in addition to the enforcement or revocation of a contract.211 If the operator fails to fulfill
the contract, consumers have the right to these remedies as contracting parties. Consumers must
obtain a permit from the operator and the ECA to resell any service provided by the operator.212
It is essential to discipline the operators so that they behave freely and openly, making all
necessary disclosures and warnings as a material fact for the transaction. 213 The developed
regulatory mechanisms assist consumers in being informed adequately through disclosure laws,
allowing them to comprehend pre-contractual and contractual details about telecom services that
are provided to them.214 The TCRPD prescribes the minimum contract requirements to ensure
the legal protection of customers at the time of contract.215 These mandatory terms are included
in the operator's code of conduct and the customer's contract document.
In practice, Ethio-Telecom has a code of conduct, internal rules, and procedures in place to
ensure that customers' needs are met and their legal rights respected. 216 Advertising, sales,
information transparency, minimum contractual conditions, billing, internal grievance
procedures, customer disconnection, customer transfers, access to emergency services, access to
directory services, privacy rights, and access to customer premises are all covered by these
internal rules and procedures.217 However, among the minimum legal requirements, the
operator’s Customer Service Charter and service agreement fail to include information on
bundled services such as third-party services.218 In particular, there is no provision in the contract
that allows customers to choose the telecom ads they want and do not want in advance on their
mobile or data numbers in the case of telecom markets.219 Operator’s Customer Service Charter
210
Telecommunications Consumer Rights and Protection Directive (n 15), Art. 9(2)(d).
211
The Civil Code of the Empire of Ethiopia (n 8), Arts. 1790, and Art. 2360-2361.
212
Telecommunications Consumer Rights and Protection Directive (n 15), Art.24.
213
David Boies and Paul R.Verkuil, ‘Public Control of Business: Cases, Notes and Questions’, (Little Brown and
Company, Toronto 1997) 96.
214
Telecommunications Consumer Rights and Protection Directive (n 15), Art.9(2) and Art.10.
215
Ibid, Art.10(1).
216
Ethio-Telecom Customer Service Charter (Jan. 2021).
217
Interview with Mohammed Haji (n 175).
218
Telecommunications Consumer Rights Protection Directive (n 15), Art. 10(1)(b).
219
Ethio-telecom Standardized Customer Service Contract Form.
44
and the customer agreement form fails to include information relating to the customers’ right to
lodge a complaint against the operator with the Communications Authority. 220
Customers interviewed agree that the operator provides telecom services following their
requests.221 However, the contract is an adhesive contract that does not clearly state any
prospective consumer rights, particularly the consumer's data privacy clause. 222 Customer care,
on the other hand, is determined by the salesperson's personal actions.223 Customers interviewed
comments that customers' service delivery should have a cross-check process. Details about pre-
contractual information should be made public. 224
The emergence of consumer dispute resolution is another new development in Ethiopia's telecom
consumer protection. Before 2019, consumer complaints in the telecommunications sector were
initially directed to the Ethiopian Telecommunication Agency. 225 Since 1996, the Ethiopian
Telecommunication Agency served as a sector regulator until it was absorbed by establishing the
Ministry of Communications and Information Technology in 2010.226 The Agency used to
mediate between customers and operators to resolve complaints, but it did not always have good
legal decisions.227 This was due to Ethiopia's lack of clearly defined telecom consumer
regulations stating complaint handling procedures. After 2019, sector-specific consumer dispute
settlement regulation is formed. 228 The ECA has a consumer department.229 The practice
220
Ethiopian Communications Service Proclamation (n 14), Art.50 (3).
Telecommunications Consumer Rights and Protection Directive (n 15), Art.10(1) e.
221
Interview with Adnan, Manager of Soft-Valley PLC, (Addis Ababa, Ethiopia, 16 April 2021).
Interview with Tibebu Bekele, personal mobile user, (Addis Ababa, Ethiopia, 19 April 2021).
Interview with Simret Tefera, Assistance Manager in Desalegn Seid Import Export PLC, (Addis Ababa, Ethiopia,
16 April 2021).
Interview with Dawit Hiwot, Manager of Dawit and Biniyam building construction partnership, (Addis Ababa,
Ethiopia, 19 April 2021).
Interview with Biruk Shiferaw, personal telecoms service user, (Addis Ababa, Ethiopia, 19 April 2021).
222
Ibid.
223
Interview with Adnan, Manager of Soft-Valley PLC, (Addis Ababa, Ethiopia, 16 April 2021).
224
Interview with Adnan (n 221).
Interview with Tibebu Bekele (n 221).
Interview with Simret Tefera (n 221).
Interview with Dawit Hiwot (n 221).
Interview with Biruk Shiferaw (n 221).
225
Lishan (n 25) 17.
226
Yazachew (n 22) 62.
227
Interview with Engineer Balcha Reba, Director General, Ethiopian Communications Authority, (Addis Ababa,
Ethiopia, 15 April 2021)
228
Ethiopian Communications Service Proclamation (n 14), Art. 6(15), Art.37, 40(1), Art.40(8), and Art. 52(3).
229
Interview with Engineer Balcha Reba (n 227).
45
demonstrates that the ECA is not dealing with consumer issues because it is still in the process of
being established, and the relevant draft Directives have been recently passed. According to the
ECA, only Ethio-Telecom is still providing telecommunication services in the country. The
operator is currently obtaining a business license and codifying a code of conduct.
Consumers have the right to file complaints with the ECA, the appeals tribunal for appeal cases,
and the Federal High Court for legal errors.230 The ECA has the authority to adjudicate all
consumer complaints against any operator and to determine appropriate remedies for any
violation of laws.231 To exercise its authority, the ECA legislates the TCRPD and the Dispute
Resolution Directive.232 It is permissible to take collective action because the new dispute
resolution directive does not prohibit consumers from doing so.233 Consumers may file
complaints about the quality of service, delays in service provision, delays in service restoration,
billing, and privacy breaches that operators offer. 234 A toll-free number and an e-mail address are
needed as part of the consumer's lodging process. 235 The Dispute Resolution Directive
No.796/2021 sets the mechanism through which adjudication is made, and remedies are given.
There is also a process in place whereby the formal court can check whether all rulings are
logical or not, as many other courts have done to serve justice in the end.
However, both the ECA and the appellate tribunal tasked with resolving conflicts do not seem to
be separate from government control, as the Prime Minister would choose the board members.236
Also, there is no mandatory provision that requires the representation of stakeholders, especially
consumers and the business community in the ECA. The EthCSP fails to establish an
independent consumer protection institution for its enforcement.
230
Ethiopian Communications Service Proclamation (n 14), Art.37(2) cum Art.40(1) and 40(8).
231
Ibid., Art.50(3). And
Telecommunications Consumer Rights and Protection Directive (n 15), Art.19.
232
Telecommunications Consumer Rights Protection Directive (n 15), Art.5(1). And
The Dispute Resolution Directive No. 796/2021.
233
Id., Art.6.
234
Ethiopian Communications Service Proclamation (n 14), Art.50(3).
Telecommunications Consumer Rights Protection Directive (n 15), Art.17(2).
235
Telecommunications Consumer Rights Protection Directive (n15), Art. 17(4)(b).
236
Ethiopian Communications Service Proclamation (14), Art.10(2).
46
Out of all five customers who were interviewed for this study, three of them responds their
complaint was partly addressed but not entirely. In response, the customer does nothing due to a
lack of details and time to file a formal complaint. 237
Two out of Five interviewed customers are aware that the newly formed ECA has the power to
view consumer complaints.238 Still, unless the case involves large sums of money, the customer
cannot go through the trouble of making a complaint to the Authority because they believe it
would take a long time to receive a final decision239
Even if the operator claims to have a customer complaint handling section that responds to
customer complaints as quickly as possible, three out five interviewed customers experience
network interruptions, low quality, and unavailability when using the operator's mobile
service.240 And if the customer contacts the operator's call center (994) to resolve the issue, the
issue persists. If a failure occurs on the distribution network, there is no immediate assistance.
Also, a customer out of five interviewed customers states that the service billing fee is not
reduced for services that were not used during the fault time.241
The EthCSP does not mention consumers’ associations, which vigorously promote consumer
rights in other jurisdictions, as we can see in EU’s and RSA’s laws on the sector. If the
Consumer Protection Association within the sector is legally given the ability to engage
consumer affairs, including bringing joint action on consumers’ behalf, it would improve
consumer protection and awareness of their rights.
237
Interview with Adnan, Manager of Soft-Valley PLC, (Addis Ababa, Ethiopia, 16 April 2021).
Interview with Simret Tefera, Assistance Manager in Desalegn Seid Import Export PLC, (Addis Ababa,
Ethiopia, 16 April 2021).
Interview with Dawit Hiwot, Manager of Dawit and Biniyam building construction partnership, (Addis Ababa,
Ethiopia, 19 April 2021).
238
Interview with Adnan, Manager of Soft-Valley PLC, (Addis Ababa, Ethiopia, 16 April 2021).
Interview with Dawit Hiwot, Manager of Dawit and Biniyam building construction partnership, (Addis Ababa,
Ethiopia, 19 April 2021).
239
Ibid.
240
Interview with Adnan (n 237).
Interview with Simret Tefera (n 237).
Interview with Dawit Hiwot (n 237).
241
Interview with Adnan (n 223).
47
3.2.2.4. Telecom Service Quality and Reliability
In a competitive market, operators must have published, comparable quality of service indicators
that will allow customers to make informed decisions. 242 The publication of quality-of-service
indicators provides operators with a strong incentive to improve the relevant quality dimensions,
243
regardless of any explicit targets or penalties that may be set. In Europe, quality of service is
regulated through an encouragement approach that relies on the power of publicity, ultimately,
and competition.244 Operators are simply required to measure and publish specific aspects of
their performance regularly.
The Ethiopian government has issued EthCSP governing telecom service standards, ensuring that
consumers have the right to access communications services that meet the regulator's quality
standards.245 The QoS rule specifies an aspect of QoS that needs regulation under Art.9(2)(b) of
the TCRPD No.832/2021. Operators must provide consumers with details about the service
quality levels offered, the initial waiting period for the initial link, service areas, and coverage
maps.246 QoS rule also includes the consumer’s right to submit compliant about the services
when an operator fails to meet the specified quality standards. 247 Regarding the QoS, ECA has
set service delivery standards and the required percentage. 248 The service delivery standards
include network availability, call set-up success rate, data transmission rate (internet speed),
SMS delivery success rate, Interactive Voice Response (IVR), call center operator response, fault
report submission rate, bill complaint rate, bill accuracy. 249 Ethiopia also adopts regulation to
protect consumers' lives and health by deterring any substandard in telecommunications
equipment, customer premises equipment, and monitoring proper usage of telecom equipment in
the telecoms network.250
242
Claire Milne, ‘Regulating Quality of Service,’ in W. H. Melody (ed.), Telecom Reform, Principles, Policies and
Regulatory Practices, (1997), 179.
243
Ibid, 187.
244
Ibid, 181.
245
Ethiopian Communications Service Proclamation (n 14), Art.6(5).
246
Telecommunications Consumer Rights Protection Directive (n 15), Art.9(2)(b).
247
Ibid, Art.17(2).
248
Telecommunications Quality of Service Directive No.794/2021, Art.12 and Annex I.
249
Ethio-telecom Customer Service Charter (n 216), Part III Clause 5.3.
250
Ethiopian Communications Service Proclamation (n 14), Art.23(3).
48
In practice, the three out of five interviewed customers reveal that Ethio-Telecom has a
substandard connection speed on the service level agreement.251 The operator's tariff has been
criticized in voice, SMS, and data services, and it has been proposed that it should be reduced.252
Dissatisfaction with the service was caused by a poor network link and a high tariff for the
services. In terms of QoS, the operator establishes criteria to assess the level of service quality. 253
The operator has a code of conduct that outlines the procedures for handling complaints as well
as a toll-free number for reporting complaints and responding to requests to improve service
quality. 254 The code discloses the Authority's service delivery criteria to its customers. Still, it
does not provide information on the opportunity to file a complaint with the ECA if they are not
met. Ethio-telecom is obliged to provide services to customers in accordance with the
Authority’s standards.255 Failure to comply with this obligation, the Communications Authority
may impose fines or compensation on the operator.256
251
Interview with Adnan (n 237).
Interview with Simret Tefera (n 237).
Interview with Dawit Hiwot (n 237).
252
Interview with Simret Tefera, Assistance Manager in Desalegn Seid Import Export PLC, (Addis Ababa, Ethiopia
18 April 2021).
253
Ethio-telecom Customer Service Charter (n 216), Part III Clause 5.4.1.
254
Ibid.
255
Ibid, Part III.
Available at: < https://onlineservices.ethiotelecom.et/billcomplaint/>.
256
Ethiopian Communications Service Proclamation (n 14), Art. 52 (4).
257
Interview with Balcha Reba (n 227).
258
Ibid.
259
Telecommunications Consumer Rights and Protection Directive (n 15), Art. 18(1)(d).
260
Ethiopian Communications Service Proclamation (n 14), Art.6(16).
49
treaties about communications services to which Ethiopia is a signatory. 261 One treaty in this
regard is the Convention on the Rights of PWD.262 Ethiopia should take reasonable steps to
ensure that PWDs have equal access to information and communication technology and systems
as everyone else. The definition of "communication" includes written, audio, plain-language,
human-reader, augmentative and alternative forms, means, and formats of communication, as
well as access to information and communication technology. 263 The telecom legislation
provides for special number systems for disabled consumers to improve service accessibility.264
However, the operator's duty to ensure that there is no discrimination against all consumers in
any manner of denial of access to facilities or provisions is a long way off. 265
The Ministry of Labor and Social Affairs, on the other hand, is empowered to carry out all acts
required for the implementation of the Convention, which stipulates access to information and
communications, as well as information and communications technologies and systems. 266 The
Ministry, in particular, should have the authority and responsibility to ensure that PWDs have
equal opportunity and full participation. 267 Although the telecom laws disregard special rules for
PWD, Ethiopia is bound by an international treaty to adhere to rules governing communication
service accessibility for this group.268 Ethio-Telecom has no special facilities for PWD when the
latter wants to receive specific telecom service from the operator.269 Generally, it is unavoidable
for operators to follow general and sector-specific laws and integrate them into their service
delivery systems.
261
Ibid., Art.6(18).
262
Convention on the Rights of Persons with Disability Ratification Proclamation No.676/2010.
263
The United Nations Convention on the Rights of Persons with Disabilities 6 December 2006, Art.2.
264
Ethiopian Communications Service Proclamation (n 14), Art. 30(1)(d).
265
Telecommunications Consumer Rights and Protection Directive (n 15), Art. 8.
266
See Convention on the Rights of Persons with Disability Ratification Proclamation (n 262), Art.3.
267
Definition of Powers and Duties of the Executive Organs of the Federal Democratic Republic of Ethiopia
Proclamation No. 1097/2018, Art.29(11)(a).
268
The United Nations Convention on the Rights of Persons with Disabilities (n 263), Art.9.
269
We can refer: Ethio-telecom Customer Service Charter (Jan, 2021). And
Ethio-telecom Standardized Customer Service Contract Form.
50
3.2.2.6. Telecom Consumer’s Right to Privacy and Protection of Personal
Information
The right to privacy in oneself, home, and communications is guaranteed in the FDRE
Constitution. 270 This privacy right is analogous to international human rights instruments such as
the 1948 Universal Declaration of Human Rights and the 1966 International Covenant on Civil
and Political Rights.271 Everyone has the right to the inviolability of his notes and
correspondence, including communications made by telephone, telecommunications, and
electronic devices, as mentioned in Art.26(2) of the 1995 FDRE Constitution.
The data breach notification requirement prescribed under Art.15(4) of the TCRPD No.832/2021
does not show what kind of breaches require notification. In the EU, when the personal data
breach is likely to adversely affect a subscriber or individual's personal data or privacy, the
provider shall also notify the subscriber or individual of the breach. 273 Telecom providers are
required to notify affected individuals or subscribers when the breach is likely to affect their
270
The FDRE Constitution Proclamation (n 10), Art. 26(2).
271
The United Nations International Covenant on Civil and Political Rights, Art.17.
272
Telecommunications Consumer Rights and Protection Directive (n 15), Art.15 and 16.
273
See The Commission Regulation 611/2013, art. 2-3, of 24 June 2013 on the Measures Applicable to the
Notification of Personal Data Breaches under Directive 2002/58/EC of the European Parliament and of the
Council on Privacy and Electronic Communications, 2013 O.J. (L 173) 2 (EU).
51
personal data or their privacy rights adversely. 274 Article 3(2) of the European Regulation
611/2013 lists factors that should be used to determine whether a breach is likely to affect the
privacy rights of the individuals adversely. 275
Under Art.16(5) of the TCRPD No.832/2021, consumer information may only be transferred to
any party with their consent or by court order, which may help to avoid unsolicited
communications. The TCRPD prevents unsolicited communications of telemarketing and non-
commercial advertisements sent to subscribers’ telephones.276 According to advertisements law,
unsolicited advertisements sent to subscribers' telephones shall be made only in advance of the
subscriber's consent.277 In effect, the Ads law adopts an 'opt-in' approach of communications by
which electronic communications have to be sent to individuals only after consent is secured. 278
However, the Ads Proclamation lifts this duty for telecom service providers both for commercial
or non-commercial purposes and for public advertisements.279 While the inclusion of an opt-in
approach is relevant in protecting subscribers' privacy, the broader exception of Ads
Proclamation to the service providers may create contradiction with the special consumer law.
The new communications service law shall prevail the ads law advertisements to the relevant and
may be mandated service advertisements.
Consumers' privacy is not legally guaranteed in an absolute sense. The 1995 FDRE Constitution
places a restriction clause on the right to privacy in Article 26(3). Subject to this constitutional
limitation, there are general and special laws that scrutinize consumer privacy.
The TFOP No.761/2012 in Art.14 allows the police to conduct covert surveillance if they suspect
a telecom fraud crime has been or will be committed. Similarly, digital or electronic data and
evidence obtained by interception or surveillance are presumed to be admissible under Art.15 of
this proclamation.
The EthCSP also establishes standards set to limit confidentiality of consumer’s information
relates to in compliance with court lawful order as pursuant to the laws of Ethiopia. 280 In this
274
Ibid, Art. 3(2), at 5.
275
Ibid.
276
Telecommunications Consumer Rights and Protection Directive (n 15), Art.10(1)(b) and Art.15(2) and (3).
277
Advertisement Proclamation (n 198), Art 22(2).
278
Ibid.
279
Ibid.
280
Ibid, Art 51(2).
52
case, the exceptional ground fall may be related to court orders for any court pending cases,
telecom fraud offense, and lawful surveillance of telecommunications in the conduct of a
criminal investigation or national security investigation. 281 The privileged actors are approved
agents of government bodies, competent court lawful orders, and the ECA's request. In all cases,
the court permission must be obtained ahead of time and in compliance with the relevant law's
terms. Agents of government bodies include the Ethics and Anti-Corruption Commission, the
Federal Police Commission, the Information and National Security Agency, and the Federal
Attorney-General are all authorized to access the telecoms network of operators, according to
Art.51(3) of this proclamation.
Surveillance of Internet and phone correspondence is permitted under a number of broad statutes
that have only simple protections for the right to privacy. There are no clear laws that the courts
must follow to determine whether the request is reasonable or not. In general, the Criminal
Procedure Code allows a court to decide that the ends of justice or any investigation,
prosecution, or other proceedings under this code will be served to issue a search warrant, which
is a broad and ambiguous requirement that gives courts a lot of leeway.282 Critics point to Ethio-
Telecom's use of Deep Packet Inspection (DPI) as an example of how the company is violating
Article 26(3) of the FDRE Constitution and Art. 51(3) of EthCSP, which forbids the company
from using such technologies. 283 The TCRPD may regulate unauthorized access by Ethio-
Telecom.284 Under Article 15 (4) of the TCRPD, the operator must take the necessary network
precautions and corrections to prevent network breaches during service delivery and notify the
customer and the Communication Authority immediately within three days of the breach.
281
Telecom Fraud Offense (TFO) (n 179).
Computer Crime Proclamation No.958/2016, Art.32.
Revised Anti-Corruption and Special Procedure and Rules of Evidence Proclamation No.434/2005, Art.42.
Prevention and Suppression of Terrorism Crimes Proclamation No.1176/2020, Art.34 and Art.42(5).
The Ethiopian Communications Service Proclamation (n 14), Art. 51.
282
The Criminal Procedure Code of the Empire of Ethiopia, Proclamation No. 185/1961, Art.33.
283
Kinfe Micheal Yilma and Alebachew Birhanu, 'Safeguards of the Right to Privacy in Ethiopia: A Critique of
Laws and Practices' (2013) 26 J Ethiopian L 131.
284
Telecommunications Consumer Rights and Protection Directive (n 15), Art.24(3).
285
Ethio-telecom Internal Procedure on Customer Data/ Information Provisioning Procedure (May 2019).
53
enforcement bodies.286 In practice, consumer data is only legally shared with third parties for
criminal investigations and other legal matters.287 The type of information/data includes
customer profile (Identification card and CAF copy), Call Detail Records (CDR), SMS contents,
location (Base Transceiver Station (BTS) level).288 Courts are eligible to request all types of
customer information/data, whereas only customer profile information will be provided to the
Adisababa/Diredawa Police Commission, the Federal and Regional Police (Wereda, Zone, and
Sub-city levels), the Federal Attorney General, the Federal Information Network Security
Agency, the Federal/Regional/Ethics and Anti-corruption Office, and other eligible entities
allowed by law.289 In light of the EthCSP and TCRPD, the operator infringes consumer's legal
rights because transferring customer profiles to the aforementioned entities including the law
enforcement bodies primarily requires court approval. 290 However, the laws’ stipulation on data
transfer doesn’t seem feasible so long as the law enforcement bodies cannot request court
approval for every criminal investigation matters. At least there should be a mechanism in which
law enforcement bodies can request customer profile information based on the duly provided
laws.291 Since customer profile information or evidence gathered has a content of confidentiality,
police must keep the information and evidence secret and only use it for the intended purposes.
This will reduce the burden on the courts while also balancing the public interest and individual
rights.
Interviewed customers have no information on whether the operator breaches their privacy or
protects confidential information. 292 The operator’s service subscription contract does not
provide a provision stating that customers have the right not to have their personal details
revealed and the condition that their data is protected.293 Furthermore, let alone the operator,
commercial advertisements send SMS and deduct service charges without their permission,
286
Ibid.
287
Interview with Gemechu Merera, Ethio-Telecom Legal Supervisor in Criminal Follow-up and Justice Support
Section, (Addis Ababa, Ethiopia, 8 April 2021).
288
Ibid.
289
Ibid.
290
Ethiopian Communication Services Proclamation (n 14), Art.51(1) and 51(3).
Telecommunications Consumer Rights Protection Directive (n15), Art.16(5).
291
Ethiopian Federal Police Commission Establishment Proclamation No. 720/2011, Art.6(1) and 6(19).
Prevention and Suppression of Terrorism Crimes Proclamation No.1176/2020, Art.34(2).
292
Interview with Adnan (n 223).
293
Ethio telecom Standardized Customer Service Subscription Contract Form.
54
causing them to be constantly disturbed. 294 Customers did not complain about the unsolicited
messages because they did not have enough time.295 The operator does not have a data breach
notification clause to notify customers and the Communication Authority.296
294
Ibid.
295
Ibid.
296
We can refer Ethio telecom Customer Service Charter (Jan. 2021).
Ethiotelecom’s Standardized Customer Service Subscription Contract Form.
297
Available at: < https://www.beuc.eu/about-beuc/who-we-are>.
298
Ibid.
299
Government Gazette Republic of South Africa Electronic Communications (n 116), Art. 71.
300
Ibid.
301
Ibid, Art.111.
55
both the appointment procedure (the Minister appoints the ICASA Council) and the
funding mechanism (ICASA's budget is submitted to Parliament through the Minister). 302
In the developing world, international regulatory best practice establishes a regulatory
authority that is free from political influence. The separation ensures that regulators can
perform their functions without interference and hold regulators accountable for results
based on specified performance criteria. 303
4. No clear rules govern how the ECA determines whether the operator has violated the
customer's rights, particularly those relating to consumer privacy. Because there is no
independent investigative team made up of system managers other than the operators, the
regulator is forced to rely solely on the evidence provided by the operators.
5. In the era of converged technology, there is no precise regulation of telecom consumer
issues overseeing the competitive environment made between the telecommunications
sector and Over the Top Service (Skype, Telegram, Google Talk). A separate set of rules
governs VOIP providers in the EU. In RSA, there are no restrictions placed on the use of
VOIP technology services, and VOIP services are not regulated differently than other
voice services.304
6. The EthCSP prescribes access rights to SNP under Art.28(2) but does not mention how
the procedures should be carried out. Aside from introducing such rights, a minimum
standard shall be established to ensure that subscribers' contracts can be easily terminated
without burdensome procedures or unjustified costs.
7. Ethiopia's data breach notification requirement in the telecom sector does not specify
what types of breaches must be reported. The Protection of Personal Information Act 4 of
2013 in RSA requires the responsible party to notify the Information Regulator and
affected parties within a reasonable time after the data breach is discovered. In contrast to
the two, EU countries’ providers must notify affected individuals or subscribers when a
breach is likely to harm their personal data or privacy rights under the conditions
specified by law.305
302
Thornton (n 129) 240.
303
Buckingham, etal. (n 85) 912.
304
Republic of South Africa Electronic Communications (n 116), Art 5(3)(a).
305
Commission Regulation 611/2013 (n 273), Art. 3(2), at 5.
56
8. Surveillance of Internet and phone communications is permitted under several broad
statutes that provide only rudimentary privacy protections.
9. The Ethiopian General Ads Proclamation broadly regulates telecom service providers'
unsolicited commercial and non-commercial advertisements. The TCRPD should
abandon the Ads proclamation's broader exception for advertising by content providers.
3.4. Conclusion
Since 2019, telecom consumers in Ethiopia are treated in special regulations. The EthCSP
introduces special consumer rights and legal protection, serving as a foundation for the newly
approved special telecom consumer law. This chapter examined consumer protection in
Ethiopia's telecom sector. It examined the scope of consumer protection in the telecom sector.
Aside from the special laws, telecom consumers are potentially protected by the general laws.
This chapter examined six common issues of consumer protection in Ethiopia’s
telecommunication sector. The main rights of telecom consumers include access rights,
consumer protection in market regulation, rights over contract terms and dispute settlement,
obtaining reliable and quality services, special protection of vulnerable consumers, and
consumer’s right to privacy and protection of personal information. With a comparative look,
each consumer right was examined under Ethiopian laws.
The Ethiopian legislation on consumer access rights in the sector is not a luxury but a need.
Ethiopia's new legal and regulatory framework for the telecom sector establishes a new
regulatory Authority and introducing market competition regulations. In addition to the
fundamental contract law found in Ethiopia's civil code, the Ethiopian telecom laws include
consumer rights and obligations. The EthCSP regulates telecom service standards, ensuring that
consumers have access to communications services that satisfy the quality criteria set by the
regulator. It also oversees the correct use of telecom equipment in the telecoms network to
safeguard the safety and health of consumers. The general and special pieces of legislation of the
country protect the privacy of consumer telecommunications, including contact information,
traffic data, and subscriber information. However, the chapter argued and indicated the consumer
protection gaps and excesses in Ethiopia's telecommunication sector.
57
The modest practice in each of consumer rights showed no active involvement made by the
regulator in protecting and enforcing consumer rights. Consumers are not adequately aware of
their own legal rights. Based on operator practice, Ethio-Telecom codifies “Telecom Users'
Service Charter”, which discloses information about how customers receive service, inquired
about pre-contractual and after-sales information, and outlines the procedure for submitting and
resolving any complaints. Furthermore, the modest practice revealed that unmet customer
demand primarily includes poor quality of services in network coverage, voucher card material,
slow data speed, unsolicited messages from Ethio-Telecom and commercial ads sent over, and
unaffordable service tariff. The operator takes no special care to ensure that the needs of
vulnerable consumers are met in both the office layout and the working process. The operator
also transfers customer profiles to the law enforcement agencies without the appropriate judicial
authorization.
58
Chapter 4
To answer the research question, the thesis first defines the distinct characteristics of telecom
consumers. It then investigates the primary rationale for adopting sector-specific consumer
protection in the telecom industry. Ethiopia is reforming its telecommunications sector, and
special consumer regulations are being incorporated. The reform involves a new strategy for
telecom customers. This thesis considered six common issues of consumer protection in the
telecommunication sector. These are access to telecommunications service, consumer protection
in a competitive market, contractual arrangements and dispute settlement, quality of service,
vulnerable consumer groups, and privacy and data protection. Informed by comparative analyses
of EU and RSA regulations, the thesis analyzed these consumer protection issues in the
Ethiopian telecommunication sector.
Ethiopia's new legal and regulatory framework for the telecom sector is often in the form of
legislation establishing a new regulatory Authority and establishing market competition
regulations. Consumer access rights such as universal access/service requirement, access to
essential services, number portability, interconnection, and service unbundling have been
enshrined in Ethiopia's existing telecom law. Telecom consumers and operators will not have
equal negotiating and market information power. Ethiopia's general and special legislation
considers this and protects the privacy of consumer telecommunications.
The thesis found gaps and excesses in consumer protection in Ethiopia's telecommunication
sector. Ethiopia's consumer protection legal framework on the sector lacks adequate laws to
protect vulnerable consumer rights, fails to form a structurally independent regulator. In the
59
regulator's structure, consumers are not represented by any Civil Association. There are no clear
rules and an independent investigative team made up of system managers to enable the ECA to
determine whether the operator has violated the customer's rights, particularly those relating to
consumer privacy. The thesis also reveals the Ethiopian General Ads Proclamation broadly
regulates telecom service providers' unsolicited commercial and non-commercial advertisements.
The data breach notification requirement imposed on telecom operators doesn't show what kind
of breaches require notification. The country lacks sector laws governing VOIP services.
Furthermore, the EthCSP specifies SNP access rights but does not specify how the procedures
are carried out. Surveillance of Internet and phone communications has been permitted under a
number of broad statutes with low burdens of proof and only rudimentary privacy protections.
Besides knowing the modest practice, the thesis designed interview questions on each common
issue of consumer protection and interviewed ECA official, Ethio-Telecom officials, and telecom
consumers. The modest practice of consumers in exercising their legal rights demonstrated that
they have knowledge gaps, and the ECA failed to educate and inform telecom consumers. In the
absence of solid consumer associations, the regulator had a substantial obligation to serve
customers by providing them with the resources needed to confront the operator. Because the
ECA was still in the process of being established, the new telecom consumer regulation had not
yet been tested in practice. As a result, the thesis does not thoroughly investigate whether
communication laws were appropriately and cautiously enforced. Ethio-telecom, the only state-
owned operator, has a "Customers' Service Charter" that discloses information on how
consumers receive service and outlines any complaints that the operator must address and
remedy. However, the operator lacks a consumer code of conduct as required by the TCRPD
and disclosure terms on subscriber privacy and data protection when customers enter into service
agreements. Furthermore, the thesis discovers that the operator's (Ethio-Telecom) contract is
adhesive and does not include consumer rights in a clear manner, which requires modification.
Customers' unmet need mainly consists of poor-quality network coverage, voucher card material,
slow data speed, unsolicited messages from Ethio-telecom and commercial adverts sent over, and
unaffordable service pricing. Special consideration for vulnerable consumers is not rigorously
adhered to in the office design and service delivery process. Moreover, Ethio-telecom transfers
customer profiles to the eligible entities including the law enforcement agencies without the
appropriate judicial authorization. However, in the case of law enforcement authorities, at least
60
in the narrow sense, the special legislation fails to strike a balance between the consumer privacy
and the institutional missions as mandated by law.
In general, Ethiopia's consumer protection in the telecommunications sector has normative gaps
that make it difficult to ensure consumer rights. The lack of such laws and loopholes in
implementation has a substantial influence on and undermines consumer protection.
3. Special legislation must be drafted to protect the basic rights of vulnerable consumers
while also adhering to the country's sector-specific international treaties. In particular,
PWD needs to get equal access to information and communication technology and
systems.
5. There must be clear rules and an independent investigative team made up of system
managers to enable how the ECA determines whether the operator has violated the
customer's rights, particularly those relating to consumer privacy.
61
6. Mandatory data breach notification that would result in serious harm to subscribers shall
be further specified under the Ethiopian TCRPD.
7. At least in general terms, there shall be a clear standard that government bodies shall bear
the burden of proof to demonstrate that surveillance of internet and phone
correspondence request is reasonable. And courts must follow specific procedural rules to
grant permission to intercept confidential consumer communications.
8. The ECA must enhance its consumer protection efforts through consumer education that
increased contact with customers and the availability of information to consumers.
9. Even if Ethio-Telecom uses a standardized service contract, the minimum consumer
rights reserved by the law shall be aligned by the incumbent operator. The ECA must
monitor the amendment.
10. Law Enforcement Authorities should be able to obtain customer profile information
without judicial approval, at least in the narrow sense. This could strike a balance
between the special consumer legislation and the institutional missions of these Law
Enforcement Authorities as established by law.
62
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Thesis Materials
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in Addis Ababa city administration’ (MA Thesis Unpublished, St. Mary’s University,
August 2013).
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65
Dessalegn Adera, The Legal and Institutional Framework for Consumer Protection in
Ethiopia, (LLM Thesis Unpublished, Addis Ababa University, 2011).
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University of Barcelona, 2016).
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2017).
66
HishamTahat, ‘ITU Regional Workshop on Competition in Telecommunications Market’
(Consumer Protection and Universal Access in Telecom, Khartoum-Sudan, 24-26 May
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Telecommunications Sector: Current Practices and Future Directions’, (The International
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Experience Regulation’, (ITU World Telecommunication Development Conference,
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Recommendations (Guidelines on regulatory aspects of QoS) of E.
ITU-D Study Group 1, ‘Telecommunication/Information and Communication
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(2014-2017).
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Communications (BEREC) and the Agency of Support for (BEREC Office), Amending
Regulation (EU) 2015/2120 and Repealing Regulation (EC) NO 1211/2009 Text with
EEC Relevance.
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67
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68
Ethiopian legislations and Reports
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Associations, 2009).
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Revised Anti-Corruption and Special Procedure and Rules of Evidence Proclamation
No.434/2005.
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Ethiopian Federal Police Commission Establishment Proclamation No. 720/2011.
Advertisement Proclamation No.759/2012.
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480/2021.
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69
Telecommunications Consumer Rights Protection Directive No.832/2021.
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Interviews
Mr. Mohammed Haji, Ethio-Telecom Chief Sales Division, Interviewed on, April 8,
2021, at 9:00 A.M.
Mr. Gemechu Merera, Ethio-Telecom Legal Supervisor in Criminal Follow-up and
Justice Support Section, Interviewed on, April 8, 2021 at 2 P.M.
Engineer Balcha Reba, Director General, Ethiopian Communications Authority,
Interviewed on, April 15, 2021, at 10:00 A.M.
Mr. Adnan, Manager of Soft-Valley PLC, Interviewed on, April 16, 2021, at 9:30 A.M.
Mrs. Simret Tefera, Assistance Manager in Desalegn Seid Import Export PLC,
Interviewed on, April 16, 2021, at 11:00 A.M.
Mr. Dawit Hiwot, Manager of Dawit and Biniyam Building Construction Partnership,
Interviewed on, April 19, 2021, at 10:30 A.M.
Mr. Tibebu Bekele, personal mobile user, Interviewed on, April 19, 2021, at 3:30 P.M.
Mr. Biruk Shiferaw, personal telecoms service user, Interviewed on, April 19, 2021, at
1:30 P.M.
Internet Sources and Press
https://www.itu.int/dms_pub/itu-d/opb/stg/D-STG-SG01.06.3-2017-PDF-E.pdf.
https://www.ethiotelecom.et/.
https://m.facebook.com/ethiotelecom/photos/a.836009829849305/1982305721886371/?t
ype=3&source=57.
https://www.facebook.com/ethiotelecom/ .
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https://onlineservices.ethiotelecom.et/billcomplaint/.
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award/ .
https://www.researchgate.net/publication/2985046_The_convergence_of_telecommunica
tions_and_computing_What_are_the_implications_today.
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https://journalofbusiness.org/index.php/GJMBR/article/view/162 Date accessed: 17 Sep.
2020.
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the-telecommunication-sector-in-ethiopia/.
https://www.researchgate.net/publication/283697998.
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October 2020.
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<https://www.google.com/url?sa=t&rct=j&q=&esrc=s&source=web&cd=&cad=rja&uact
=8&ved=2ahUKEwiOz9fo7fzwAhUPLBoKHbonC7EQFjAAegQIAhAD&url=https%3A
%2F%2Fwww.itu.int%2FITU-D%2Ftreg%2Fpublications%2FITU_WB_Dispute_Res-
E.pdf&usg=AOvVaw0NKUwNiJO4uM65Q4lS47ql >
http://data.eu/eli/reg/2018/1971/oj.
http://data.europa.eu/eli/dir/2018/1972/oj
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http://www.itu.int/ITUD/treg/Documentation/Infodevhandbook/3 Interconnection.pdf.
https://www.itu.int/pub/D-STG-SG01.18.2.
https://www.itu.int/en/ITU-D/Conferences/GSR/Pages/gsr2014/default.aspx.
https://ec.europa.eu/competition/sectors/telecommunications/overviewen.html.
https://www.icasa.org.za/pages/telecommunications.
https://www.icasa.org.za/pages/telecommunications.
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Retrieved at:
<https://www.google.com/url?sa=t&rct=j&q=&esrc=s&source=web&cd=&cad=rja&uact
=8&ved=2ahUKEwiIz8Llve3vAhUMzYUKHbKaAlAQFjAAegQIAxAD&url=https%3
A%2F%2Fwww.sadc.int%2Ffiles%2F2013%2F8969%2F0505%2FFinal_SADC_Industr
ial_Develeopment_Policy_Framework.pdf&usg=AOvVaw2iGqZBjUShQt6_vbRfCR50>
Retrieved at:
<https://www.google.com/url?sa=t&rct=j&q=&esrc=s&source=web&cd=&cad=rja&uact
=8&ved=2ahUKEwjmht7bw3vAhURy4UKHRrtCscQFjAAegQIAhAD&url=https%3A
%2F%2Fwww.itu.int%2FITUD%2Fprojects%2FITU_EC_ACP%2Fhipssa%2FActivities
%2FSA%2FCRASA%2FGuidelines%2520_abridged__v2.pdf&usg=AOvVaw2WZ9ocPl
8VoNwcFNXjuZ7u >.
https://www.beuc.eu/about-beuc/who-we-are.
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Appendixes
Interview Guide Questions to Officers in the Ethio-Telecom, Telecom Consumers and Ethiopian
Communications Service Authority.
This interview guide is prepared for the purpose of gathering information for my Master’s thesis
that I am pursuing in AAU Law School. I am grateful for your kind cooperation investing your
precious time to respond for my interview.
1. How are telecom customers treated when they complain about service delivery? What
types of complaints are most commonly filed?
2. What steps are followed if the customer and the operator cannot reach an agreement?
3. What kind of activity does the operator perform in terms of consumer access rights in
telecom services?
4. When delivering telecom services, what steps does the operator take to assure service
quality?
5. How did the consumer agree to sign into a contract for telecom services with the
operator?
6. How does the operator provide telecommunications services to vulnerable consumers,
notably persons with disabilities?
7. How does the operator protect and respect the privacy of its customers? Is there any way
for the operator to access and transfer the customer's privacy to a third party?
1. When you require telecom services from the operator, how are you treated?
2. Have you ever had an issue with a telecommunications service? What kind of
complaint are they, and have you filed it to the operator so that it can be resolved?
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3. What was the operator's response to your complaints? Is your issue completely
resolved? If not, what did you do?
4. Because you disagreed with the operator, did you take your matter to court or any
other government organization? If not, where did you file your complaint?
5. What legal rights do you have as a telecom consumer?
6. Is there any commercial message that has been sent to you without your consent using
your mobile phone? What efforts did you take to avoid this?
7. How can you be certain that the operator will keep your communications data safe
and private and will not share it with a third party?
8. What suggestions do you have for the operator to improve its service?
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