South Africa Approves Telecoms Bill to Break Market Dominance

Parliament approved an updated Electronic Communications Amendment Bill, likely to be published for public comment by the Department of Communications and Digital Technologies soon to modernise digital infrastructure and cut barriers for smaller players.

The law targets market dominance by Vodacom, MTN, and Telkom. These firms dominate the market (exact coverage percentage unverified). They must now support mobile virtual network operators (MVNOs) and offer national roaming. This opens doors for smaller providers to use big networks.

Spectrum Rules Force Sharing

Amendments propose new provisions regarding spectrum sharing, with Icasa having powers related to spectrum as per prior auctions. It prioritises community networks and small businesses.

Community networks run on a not-for-profit basis. Meanwhile, large operators face mandatory sharing with secondary licensees.

Icasa gains power to enforce these rules. It focuses on idle spectrum in any area. As a result, hoarding ends. Smaller networks get first access to this key resource.

Infrastructure Access Speeds Rollout

Amendments address competition and MVNO relations, including fair pricing, but specific facilities and timelines unconfirmed.

Amendments follow the Competition Commission’s 2019 data services market inquiry recommendations.

These steps fix fragmented approvals and high costs. They speed broadband and 5G rollout. Network delays drop as a result.

Investors eye clearer rules and more competition. Funding flows to next-generation tech. South Africa readies for data growth in its digital economy. Returns rise as affordability improves and access expands.

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