The Independent Communications Authority of SA (ICASA) is launching what it calls a "high-level inquiry" into the state of competition in the ICT sector today.
This comes about nine months after the regulator took steps to address the deficit in competition in the mobile market through its cost-to-communicate programme. ICASA also announced new mobile termination rates (MTRs) at the end of January, introducing a new regime that favours SA's two smaller operators.
In a statement announcing the launch of its latest initiative, ICASA said the ICT sector has been undergoing - and continues to undergo - rapid technological changes with far-reaching implications for the local and international industries.
"One area, in which these changes are more pronounced, is in the competitiveness of the electronic communications, broadcasting and postal sectors, and the assumption that greater competition will lead to reduction in the cost to communicate."
Another issue, says the regulator, is what impact any consolidation of the market will have on the state of competition, the cost to communicate and bridging the digital divide. "The question of the assignment of spectrum for broadband will also have an effect on the state of competition in the ICT sector."
MTN and Telkom Mobile recently signed a heads of agreement whereby the two operators will be able to roam on each other's network, and MTN will manage Telkom's radio access network.
Meanwhile, MTN's rival, Vodacom, is in negotiations with second network operator Neotel over a 100% acquisition of its business.
It is against this background, says ICASA, that it is embarking on an extensive inquiry "to develop a full appreciation of the implication of these unfolding changes and developments on the regulation of competition in the ICT sector".
ICASA will detail its inquiry plans in a media briefing this morning.
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