QUESTION:
I would like to enquire if it is Halaal to take out cellphone contracts, as I understand it to be similar to that of a bond or loan?
I would also like to inquire if it is permissible to sell cellphone contracts as a third party via telemarketing for companies such as Vodacom and MTN etc.?
ANSWER:
1. Yes, it is permissible to subscribe to a cell-phone contract. The purchaser is aware of the type of phone that he will receive, the number of minutes that he will receive monthly for calling, the amount of internet data, etc. The price that he is required to pay for the above services or facility is also known and fixed with no ambiguity whatsoever, hence the transaction is in order. In conclusion, he is paying a fixed monthly amount in lieu of services that are stipulated.
On the other hand, one takes a loan of R100 000.00 from a financial institute. He doesn’t pay back R100 000.00 but rather he ends up paying R150 000.00. He is paying R50 000.00 extra without receiving any benefit whatsoever, hence it is categorized as interest, which is Haraam.
In conclusion, there is a vast difference between the two; in the former instance one is paying a rental in lieu of known benefits that he will receive, whilst in the latter scenario, one is paying extra (over and above the principal loan) without receiving any benefit whatsoever.
2. We understand from your query that a person is employed by a cell-phone provider such as Vodacom or MTN, etc. The employee markets cell-phone contracts through telemarketing. The employee is remunerated for his services by the employer. This type of an arrangement is in order. Or, it is possible that he receives a fixed commission of R500 (for example) for every contract that he sells. This arrangement is also in order as there is no ambiguity whatsoever on either side.
ALLAH TA’ALA ALONE IN HIS INFINITE KNOWLEDGE KNOWS BEST!
ANSWERED BY:
Mufti Mohammed Desai
Date: 23 Safar 1445 / 09 September 2023
