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The Chairperson of the Portfolio Committee on Communications and Digital Technologies, Ms Khusela Sangoni Diko, has welcomed and fully supported the position taken by the Independent Communications Authority of South Africa (ICASA) to uphold existing legislative and regulatory requirements in the telecommunications sector, including broad-based black economic empowerment (B-BBEE) ownership provisions.
 
ICASA has made it clear that any attempt to introduce equity equivalent investment programmes (EEIPs) as a substitute for direct ownership obligations would require amendments to the Electronic Communications Act (ECA). This is a position long held by the committee.
 
The law, in its current form, mandates that at least 30% ownership in licensed telecommunications entities must be held by historically disadvantaged South Africans.
 
Ms Diko said the committee fully supports ICASA’s position that regulatory authorities cannot amend or circumvent 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,” said Ms Diko.
 
The committee reaffirmed that regulatory processes must be respected and that any departure from existing ownership requirements would require formal legislative amendments through Parliament and not regulatory discretion.
 
It further emphasised that South Africa’s communications policy framework remains firmly anchored in 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 partnerships and business models that comply with national legislation while supporting local industry participation. Companies such as Q-KON, Liquid Intelligent Technologies, Vox and Paratus continue to play a significant role in integrating global satellite capacity into the domestic market through compliant and innovative models.
 
Telecommunications operators, including Telkom, MTN and Vodacom, are also leveraging strategic partnerships to expand connectivity, while Sentech remains strategically positioned to provide affordable satellite services, particularly in rural and underserved communities.
 
“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,” said Ms Diko.
 
The committee has long cautioned that allowing exemptions or regulatory concessions for select multinational corporations would unfairly disadvantage local operators that continue to invest and operate within the established legal framework.
 
Ms Diko commends ICASA for its principled and legally sound position and calls on all prospective market entrants to respect South Africa’s legislative framework and policy objectives.
 
Issued by the Parliament Communication Services on behalf of the Chairperson of the Portfolio Committee on Communications and Digital Technologies, Ms Khusela Sangoni Diko.