STAATSKOERANT, 24 JANUARIE 2014
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No. 37261
Chapter 3: The Current State of the South African Communications Sector
3.1 Electronic Communications Sector
3.1.1 Legislative and policy environment
The 1996 White Paper on Telecommunications envisioned a policy environment in which the
telecommunications sector balances the provision of basic universal service to
disadvantaged rural and urban communities with the delivery of high-level services capable
of meeting the needs of a growing South African economy. The White Paper sought to,
amongst other things, provide for a new market structure that orientates the sector towards
accelerated development and universal service, as well as take into account technological
and international trends.
The market structure entailed a period of exclusivity for Telkom. After this exclusivity period,
the White Paper envisaged an environment whereby various telecommunications market
segments would be liberalised in a phased process, put into motion and overseen by the
Regulator. This policy provision enabled the licensing of the Second National Operator in the
fixed-line market, and three mobile operators. In terms of the ownership, investment and
financing, the state retained a majority shareholding in Telkom and shareholding
in
Vodacom. The Altech Judgement in 2008 cleared the way for Value Added Network Service
(VANS) licencees to self-provide their own telecommunications network, facilities and
services.
A Telecommunications Regulator called the South African Telecommunications Regulatory
Authority (SATRA) and the Universal Service and Access Agency of South Africa (USAASA)
were set up. SATRA was established to regulate telecommunications in the public interest
and also manage the radio frequency spectrum with the exception of the broadcasting
services frequency bands which were then administered by the Independent Broadcasting
Authority (IBA). In 2000, SATRA and the IBA merged,and the new regulator, ICASA, was
established.
The White Paper sought to address issues of transformation in the sector through the
economic empowerment of historically disadvantaged individuals, to ensure that meaningful
participation in all aspects of productive economic activity was achieved. Regulations
published by ICASA, the establishment of a new licensing framework, as well as the
promulgation of the principal legislation on Broad-Based Black Economic Empowerment
gave effect to the policy imperatives of broadening equity ownership, employee shareownership schemes, creating opportunities for meaningful employment and management,
the effective promotion of entrepeneurship, licensing opportunities and procurement and setaside policies.
The issue of universal access and universal service were fundamental policy issues
addressed by the White Paper on Telecommunications. In this regard, the creation of
USAASA was aimed at, inter alia, providing access points for communications infrastructure
and services. In addition, the White Paper also sought to address the manner in which the
cost of services is determined through tariff regulation, as this aspect was critical to the
achievement of universal service. The key requirement was to create a balance between
affordability and the need to expand and upgrade the network.
In terms of legislative reforms, a new Telecommunications Act was promulgated in 1996.
The Act provided a framework whereby the legal situation with regard to licences and
supplementary agreements issued or made prior to the introduction of new
telecommunications legislation was dealt with; the new licensing regime of operators was
introduced; the integration of TBVC areas and the question of the interception of
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