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The Association for Communications and Technology (ACT) has withdrawn its court application against the Department of Home Affairs over the adjusted rates for its online verification system.
The Minister of Internal Affairs, Dr. Leon Schreiber, welcomed the decision.
The application, brought in the Gauteng High Court, challenged the new tariff structure for private companies that use the department’s Online Verification System (OVS) to verify customers’ identities against the population register.
The case has now been settled after ACT formally withdrew its application. Meanwhile, several mobile network operators, which are part of ACT, have approached the department to collaborate on the government’s digital transformation plans, including the development of a digital identity system.
Schreiber says the improvements to the system and the adjustment of fees were essential to stabilize a system that was under pressure.
“The upgrades to the OVS, including the adjustment of fees, have enabled Home Affairs to replace a system on the brink of collapse with a world-class verification system.”
The department has been providing the service since 2013, but rates have not been adjusted for more than a decade. According to the department, this led to the service being underfunded, which in turn contributed to poor performance and frequent interruptions.
By 2025, more than half of all authentication attempts failed, and even successful queries often took hours to complete. After the rate adjustment and technical upgrades, the system’s availability has improved to 99% and now delivers results within seconds.
Schreiber says the reforms also support broader collaboration with the private sector. “This reform is a core part of our new digital partnership model with the banking sector, which already enables lightning-fast smart ID services at numerous bank branches,” he says.
He adds that the withdrawal of the court case creates new cooperation opportunities. “The withdrawal of this court challenge creates an opportunity for telecommunications companies to take their rightful place as key players in our digital transformation. I look forward to working with the sector to further accelerate this agenda,” adds Schreiber.
Public sector users still have free access to the service, while the adjusted rates apply to private users.