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No. 37261
GOVERNMENT GAZETTE, 24 JANUARY 2014
Chapter 4: Postal Infrastructure Services and Content
4.1 Introduction
The postal services sector is an important component of the economic sector in South Africa
contributing approximately 3,16% to GDP. This includes the courier and express parcel
market. The sector enables individuals and businesses economically and plays an important
role in development.
The letter post is declining both in terms of volume as well as a percentage of total revenue
generated in the sector. The declining trend in letter mail volumes is ascribed to the global
recession and electronic substitution effects.
Despite this trend, the need for a postal service is unlikely to disappear. While efforts are
being made to bridge the wide digital divide in South Africa, postal services remain important
for people and communities who do not have ready access to e-mail or the internet, for
example, when applying for jobs or keeping in touch with family. The postal network also
serves as a conduit for government to communicate with communities in the most rural parts
of the country, as well as communities without access to electronic media.
Besides, almost every business relies on the postal, courier and express parcel market for
daily operations. From a social perspective, a basic postal service is the right of all citizens
and is essential to the social and economic development of South Africa. Almost every
individual is dependent on postal services and almost every business's value chain
intersects with the postal service's value chain.
There is a need to fulfil the social obligations of the sector while still ensuring that it remains
commercially viable. The social objective is characterised by universal service obligations
and is driven by affordability, equity and keeping costs down, while the commercial objective
is driven by profit maximisation, efficiency, and quality of service imperatives.
4.2 Policy and regulatory environment
The Postal Services Act No. 124 of 1998 (the Postal Services Act), provides for an operator
to be invited by the Minister to provide services within the reserved area. Currently SAPO
holds a 25-year licence and is the only operator licensed to provide services within the
reserved area. Operators wanting to operate within the unreserved area must apply for a
registration certificate with the regulator. The registration is valid for one year from the date
of issue and costs a non-refundable fee of R500. SAPO is also required to register in order
to provide unreserved postal services.
The Act provides for the Regulator to suspend or cancel any licence or registration certificate
issued, if the holder has contravened the terms and conditions of the licence or certificate or
the provisions of the Act.
ICASA is expected to monitor not only SAPO's compliance with licence terms and conditions
as well as the law, but that of all postal operators serving the unreserved market. However,
due to capacity constraints, over the years ICASA has relied on compliance reports
submitted by SAPO and has performed limited inspections.
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