The Independent Communications Authority of South Africa (ICASA) is considering whether to issue additional Individual Electronic Communications Network Services (I-ECNS) licences as part of a review of the licensing framework governing the telecommunications sector.
The regulator has published a Discussion Document outlining its preliminary views on the effectiveness of the existing licence transfer framework and whether issuing more I-ECNS licences could improve competition, extend network coverage and advance universal access to communications services.
The document forms part of phase two of ICASA’s four-phase inquiry into the licensing framework for I-ECNS licences.
At the centre of the inquiry is whether the current framework adequately supports competition and whether additional licences could bring benefits that outweigh the regulatory, compliance and environmental costs associated with licensing more network operators.
The inquiry follows a ministerial policy direction issued on 22 August 2025, which instructed ICASA to examine whether new individual network licences would promote competition and the universal provision of electronic communications networks and services.
ICASA’s preliminary assessment points to shortcomings in the existing licensing system. The authority says the framework, which allows prospective operators to enter the market by acquiring existing licences from current holders, has not been effective in promoting competition.
Although ICASA has issued 470 I-ECNS licences, the majority are largely inactive or dormant, according to the Discussion Document. The authority points out that it approves an average of about 11 ownership or control transfers a year.
The regulator also notes that South Africa’s fixed-line and mobile network markets remain highly-concentrated, with a small number of licensees holding most of the market share.
Undermined effectiveness
Stakeholders raised concerns about barriers to entry in the secondary market for licences, including a lack of pricing transparency, high acquisition costs and lengthy approval processes.
Amatole Telecommunications told ICASA that acquiring a pair of I-ECNS and Individual Electronic Communications Services (I-ECS) licences in the secondary market cost more than R1 million, excluding the regulator’s R84 738 transfer application fee per licence.
Other stakeholders argued that the system had created artificial scarcity, allowing existing licence holders to command higher prices and making it more difficult for new operators to enter the market.
Some also raised concerns about licences being held as strategic assets rather than being used to deploy networks and provide services – a practice described by SprintSA as “warehousing”.
ICASA says the barriers to entry, dormant licences and lengthy transfer approval timelines have undermined the effectiveness of the current framework.
The regulator’s preliminary view is that prospective operators should be allowed to apply directly to the regulator for new licences, rather than having to negotiate with existing licence-holders.
It says a direct licensing mechanism would reduce dependence on incumbent operators and could make it easier for small, medium and micro enterprises to enter the market and contribute to transformation.
The authority is also considering a possible “use it or lose it” approach to discourage licence-holders from retaining licences for speculative purposes. It says it could publish guidelines on licence transfer approvals to improve transparency and provide greater regulatory certainty.
The satellite divide
The submissions reveal differences between traditional telecommunications operators and satellite and other emerging network providers.
Satellite operators, including SpaceX, Amazon Leo, Eutelsat and Sateliot, argue that additional licences could help extend connectivity to rural and underserved communities, improve network resilience and support the deployment of emerging technologies.
These include low Earth orbit satellite constellations, direct-to-device communications, private 5G networks, internet of things applications and fixed wireless access.
However, established operators − including Vodacom, MTN, Rain, Telkom and Maziv − raised concerns about whether issuing more licences would deliver meaningful additional benefits.
Some argued that the existing framework already accommodates technological developments and that ICASA should instead address structural challenges such as spectrum availability, infrastructure deployment and infrastructure sharing.
ICASA also acknowledged concerns that additional network operators could lead to duplicated infrastructure, unnecessary fibre trenching, environmental damage and increased pressure on municipal planning systems.
The regulator says these risks can be managed through existing legislative and regulatory mechanisms, including infrastructure-sharing arrangements and licence conditions.
It adds that issuing licences alone would not guarantee universal access, as operators could still prioritise commercially attractive urban areas over rural communities where network deployment is more expensive.
Public consultation opens
ICASA says it received 32 submissions by the 16 February deadline during phase one of the inquiry.
A further submission from the Association of Communications and Technology was received a day late but accepted after the authority granted condonation.
The respondents included Vodacom, MTN, Telkom, Cell C, Rain, Maziv, Eskom, Sentech, SpaceX, Amazon Leo, Eutelsat, Liquid Telecommunications, the Internet Service Providers Association and the South African Communications Forum.
The Discussion Document provides a thematic analysis of the submissions and ICASA's preliminary responses.
Interested stakeholders have 45 working days from the day following publication of the document to submit written representations.
Submissions must be addressed to project manager Peter Mailula at iecns-inquiry@icasa.org.za or pmailula@icasa.org.za.
Stakeholders must indicate whether they wish to make oral representations at public hearings. The inquiry’s remaining phases are public hearings and publication of a findings document.
The Discussion Document was published in Government Gazette No 55654, General Notice 4234 of 2026, on 30 October.
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