The clock is ticking for South Africa’s major mobile network operators to fulfil their legal obligation of zero-rating information and services that carry social value. Companies like MTN, Vodacom and Cell C have been given until 15 January 2027 to make the digital content of public benefit organisations (PBOs) data-free for users.

The zero-rating requirement is not a corporate social responsibility initiative; it’s a condition attached to the multi-billion-rand spectrum auction held by Independent Communications Authority of South Africa (ICASA) in 2022. The expected revenues foregone were factored into the bid prices by the network operators.  But ICASA has yet to indicate how it intends to hold operators accountable.

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

“Almost every home in South Africa has a mobile phone, but many in poor communities can’t afford the cost of data. This means the tools for stimulating socio-economic change are out of reach for millions of people in a country where barriers to connectivity and access to information and resources are a systemic choke which reinforces inequality,” explains David Harrison, CEO of the DG Murray Trust (DGMT).

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

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

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

PBOs are vetted and waiting to be zero-rated

Zero-rating is not new to mobile network operators: they were required to zero-rate educational and Covid-related health content of websites under the Covid-19 national disaster regulations. In the years before the pandemic, and since, some operators have zero-rated sites of their own accord.

But where this has happened, implementation was uneven: a site that is data-free on one network may not be on another, or may carry different speed and data limitations. And the content itself was selected at each operator’s discretion, with no shared standard to ensure it delivered the greatest possible educational or health benefit.

DGMT began exploring ways to reduce data costs and expand access to public benefit content as early as 2013, long before zero-rating became a licence condition. To streamline implementation, DGMT operates the Social Innovation Register (SIR), which is designed to review PBO applications by verifying their tax-benefit status according to Schedule 9 of the Income Tax Act and confirming they meet the technical requirements for zero-rating.

The SIR acts as a single source of information for PBOs that have been assessed against the eligibility criteria for zero-rating and aims to reduce the need for mobile network providers to evaluate applications independently. While the SIR itself was only launched in 2023, it is the product of more than a decade of work in this area.

“Since going live, the SIR has processed more than 120 applications, demonstrating that much of the infrastructure needed to drive implementation at scale is already in place. What’s missing is engagement,” says Kabane-Bailey.

“The question is not whether operators can do this but why they haven’t. When zero-rating was required under the Covid-19 disaster regulations, networks implemented it,” she adds.

South Africans have long regarded networks as predatory and for years, consumers complained that data was unaffordable, but prices only came down after the Competition Commission confirmed it. Now, MTN and Vodacom are in court against ICASA over data expiry rules. These repeated push-backs and delays only serve to deepen public mistrust.

“Zero-rating offers operators a chance to restore trust and to accelerate socio-economic development, at modest cost, with the systems already built,” Kabane-Bailey explains.

“We are calling on operators to use the existing systems to fast-track zero-rating before the deadline expires, and to urgently publish their implementation plans,” she concludes.

To arrange interviews, please contact DGMT Communications Specialist Corné Kritzinger on 060 679 7964 or send an email to corne@dgmt.co.za.

About us: DGMT is a South African foundation built on endowments from Douglas and Eleanor Murray. As a public innovator through strategic investment, DGMT is committed to developing South Africa’s potential. To this end, DGMT has identified 10 opportunities to escape the inequality trap and build a thriving society. These opportunities span early childhood development, innovation amongst civil society organisations, youth development, preventing nutritional stunting and promoting literacy.