ICASA has stated that any move to introduce equity equivalent investment programmes (EEIPs) as a replacement for direct ownership obligations would require amendments to the Electronic Communications Act (ECA).
The Chairperson of the Portfolio Committee on Communications and Digital Technologies , Ms Khusela Sangoni Diko, has expressed full support for the position taken by the Independent Communications Authority of South Africa (ICASA), affirming that existing legislative and regulatory requirements in the telecommunications sector—including broad-based black economic empowerment (B-BBEE) ownership provisions—must be upheld.
ICASA has stated that any move to introduce equity equivalent investment programmes (EEIPs) as a replacement for direct ownership obligations would require amendments to the Electronic Communications Act (ECA). This position, according to the committee, has long been consistent with parliamentary interpretation of the law.
The current legal framework requires that at least 30% ownership in licensed telecommunications entities be held by historically disadvantaged South Africans.
Ms Diko said the committee fully supports ICASA’s stance that regulatory bodies cannot alter or bypass legislation to accommodate multinational operators unwilling to comply with South Africa’s empowerment framework.
“Transformation in the communications sector is not a procedural inconvenience that can be negotiated away through administrative mechanisms. It is a constitutional and developmental imperative intended to ensure meaningful economic participation by historically disadvantaged South Africans.”
– Ms Khusela Sangoni Diko, Chairperson, Portfolio Committee on Communications and Digital Technologies
The committee further reaffirmed that any deviation from existing ownership requirements must be effected through formal legislative amendments by Parliament, not through regulatory discretion.
It emphasized that South Africa’s communications policy framework remains focused on addressing historical inequalities, promoting inclusive economic growth, and ensuring equitable access to the benefits of technological advancement.
Ms Diko noted that low earth orbit satellite broadband services are already being deployed in South Africa through compliant partnerships and business models. Companies such as Q-KON, Liquid Intelligent Technologies, Vox, and Paratus are actively integrating global satellite capacity into the domestic market while supporting local participation.
Telecommunications operators including Telkom, MTN, and Vodacom are also expanding connectivity through strategic partnerships, while Sentech is positioned to provide satellite services, particularly in rural and underserved areas.
“This demonstrates that South Africa possesses both the capacity and expertise to expand broadband connectivity in a manner that supports local economic development, skills transfer, innovation and regulatory compliance.”
– Ms Khusela Sangoni Diko, Chairperson, Portfolio Committee on Communications and Digital Technologies
The committee warned that granting exemptions or regulatory concessions to multinational corporations could disadvantage local operators that continue to invest within the existing legal framework.
Ms Diko commended ICASA for what she described as its principled and legally sound position, and urged all prospective market entrants to comply with South Africa’s legislative framework and policy objectives.
