The Independent Communications Authority of South Africa (ICASA) is looking to amend licensee Telkom’s universal service and access obligations (USAOs).
USAOs are regulatory requirements imposed by the telecommunications regulator on licensed telecommunications and broadcasting service providers to ensure all South Africans, including those in underserved, rural, or low-income areas, have affordable and equitable access to communications services such as voice, internet and broadcasting.
The South African government, through the Department of Communications and Digital Technologies, directly holds a shareholding of around 40% in Telkom. The Public Investment Corporation, which manages government employee pensions, owns about 14% on behalf of the Government Employees Pension Fund.
Combined, the state effectively controls around 54% of Telkom’s shares, giving it significant influence, even though Telkom is publicly listed on the JSE.
In a Government Gazette dated 10 October, ICASA says: “Due to changes in the electronic communications market in recent years, particularly the growth of mobile telephony and related technological developments, some of Telkom’s USAOs have become obsolete, necessitating a review of its legacy obligations.”
The regulator is, therefore, considering amending Telkom’s USAOs and substituting some of them with connectivity obligations in relation to Thusong Service Centres, many of which lack internet connectivity.
Thusong Service Centres, formerly known as Multipurpose Community Centres, are one-stop public access facilities used to provide essential government information and services, says ICASA.
Bearing the costs
Under the amendments, the regulator says Telkom must provide connectivity to 171 Thusong Service Centres.
Telkom must also submit a rollout plan for approval, which must include the list of centres (with names, locations and GIS coordinates), the technology to be deployed at each centre, the target number of centres to be connected per year, the planned connection schedule, and details on how quality and speed assurance will be maintained.
“Implementation must begin within six months of the notice’s publication date, and all connections must be completed within three years. Telkom must maintain connectivity for the duration of the licence period,” the Government Gazette reads.
According to ICASA, connectivity at each Thusong Centre must be no less than 30Mbps, and bandwidth must be provided on an uncapped basis.
Each centre must be equipped with routers (with WiFi capabilities), firewalls and cabling, all installed by Telkom.
A public WiFi hotspot must be provided at each site, and any maintenance or repair issues must be resolved within five working days, it adds.
On costs and usage, ICASA points out that Telkom must provide these services free of charge, and the cost for public access via WiFi hotspots must not be billed to the Thusong Service Centre.
Usage is subject to a fair usage policy, with a limit of 300MB per day and a monthly cap of 2GB per consumer. Telkom must bear all setup, support and maintenance costs for the duration of the licence.
Failure by Telkom to comply with or discharge the universal service and access obligations will constitute a breach of licence terms and conditions, says the authority.
“Contravention of clauses 1.1.2, 1.3, 1.4, or 1.5 will render Telkom liable to a fine not exceeding R500 000 for each instance. Contravention of clauses 1.1.1 or 1.6 will render Telkom liable to a fine not exceeding R1 million.”
Further non-compliance may be referred to ICASA’s Complaints and Compliance Committee.
In a statement to ITWeb, Telkom says it welcomes opportunities to collaborate on regulatory developments that advance inclusive and sustainable connectivity.
The company says it has been engaging constructively with ICASA over several months as part of a collaborative and transparent regulatory process.
It explains that these discussions form part of the broader framework through which telecommunications operators work with the regulator to align historical universal service obligations with South Africa’s evolving digital landscape and the realities of modern connectivity.
Ongoing dialogue
According to Telkom, the proposed amendments, currently open for public comment, are procedural and reflect the ongoing dialogue between ICASA and licensees like Telkom, to ensure regulatory obligations are both practical and responsive to the needs of society.
“Telkom remains committed to ensuring all licensing obligations are met in a manner that supports sustainable business operations while advancing national priorities, including digital inclusion and socio-economic development,” it says.
Lunga Siyo, CEO of Telkom Consumer and Small Business at Telkom, says the company views the regulatory process as an important opportunity to promote a balanced and forward-looking framework for the ICT sector.
“Our focus remains on enabling inclusive and sustainable connectivity, while supporting an environment that encourages growth in the sector,” he says.
As a national operator, Telkom says it embraces its responsibility to contribute to South Africa’s digital future. “Our continued engagement with ICASA reflects our shared vision of building a connected society where no one is left behind.
“ICASA and Telkom look forward to strengthening this partnership as they work together to deliver meaningful connectivity solutions for all South Africans.”
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