Close Menu
TechCentralTechCentral

    Subscribe to the newsletter

    Get the best South African technology news and analysis delivered to your e-mail inbox every morning.

    Facebook X (Twitter) YouTube LinkedIn
    WhatsApp Facebook X (Twitter) LinkedIn YouTube
    TechCentralTechCentral
    • News
      Bitcoin firm headed to JSE main board - Africa Bitcoin Corporation

      Bitcoin firm headed to JSE main board

      18 May 2026

      Activists challenge 160MW Cape Town data centre project

      18 May 2026
      South Africa leads rest of Africa in AI adoption - Microsoft

      South Africa leads rest of Africa in AI adoption – Microsoft

      18 May 2026
      The toll booth at the bottom of the sea - The Strait of Hormuz at the entrance to the Persian Gulf

      The toll booth at the bottom of the sea

      18 May 2026
      Anthropic to brief financial regulators on Mythos AI risk

      Anthropic to brief financial regulators on Mythos AI risk

      18 May 2026
    • World
      Pop star sues Samsung for $15-million - Dua Lipa

      Pop star sues Samsung for $15-million

      11 May 2026
      OpenAI's new audio APIs aim for conversational voice agents

      OpenAI’s new audio APIs aim for conversational voice agents

      8 May 2026
      'It was my idea': Musk claims paternity of OpenAI - Elon Musk

      ‘It was my idea’: Musk claims paternity of OpenAI

      29 April 2026
      Pivotal week for US tech stocks

      Pivotal week for US tech stocks

      28 April 2026
      Sam Altman denies betraying Elon Musk. Shelby Tauber/Reuters

      Worries over OpenAI’s growth as Anthropic gains ground

      28 April 2026
    • In-depth
      Alfa's electric rebel - Alfa Romeo Junior Elettrica Veloce

      Alfa’s electric rebel

      29 April 2026
      Africa switches on as Europe dims the lights

      Africa switches on as Europe dims the lights

      9 April 2026
      The biggest untapped EV market on Earth is hiding in plain sight

      The biggest untapped EV market on Earth is hiding in plain sight

      1 April 2026
      Datatec is firing on all cylinders - Jens Montanana

      The R16-billion tech giant hiding in plain sight

      26 March 2026
      The last generation of coders

      The last generation of coders

      18 February 2026
    • TCS
      TCS+ | The Up&Up Group on the hidden cost of AI - Jason Harrison

      TCS+ | The Up&Up Group on the hidden cost of AI

      13 May 2026
      Michael Rossouw

      TCS+ | The retirement decision most South Africans get wrong

      6 May 2026
      TCS | The Cape Town start-up listening for TB with AI - Braden van Breda

      TCS | The Cape Town start-up listening for TB with AI

      4 May 2026

      TCS+ | ‘The ISP for ISPs’: Vox’s shift to wholesale aggregator

      20 April 2026
      TCS | Werner Lindemann on how AI is rewriting the infosec rulebook

      TCS | Werner Lindemann on how AI is rewriting the infosec rulebook

      15 April 2026
    • Opinion
      Free calls, dead voice and Shameel Joosub's Spanish ghost - Duncan McLeod

      Free calls, dead voice and Shameel Joosub’s Spanish ghost

      22 April 2026
      The conflict of interest at the heart of PayShap's slow adoption - Cheslyn Jacobs

      The conflict of interest at the heart of PayShap’s slow adoption

      26 March 2026
      South Africa's energy future hinges on getting wheeling right - Aishah Gire

      South Africa’s energy future hinges on getting wheeling right

      10 March 2026
      Free calls, dead voice and Shameel Joosub's Spanish ghost - Duncan McLeod

      Apple just dropped a bomb on the Windows world

      5 March 2026
      R230-million in the bag for Endeavor's third Harvest Fund - Alison Collier

      VC’s centre of gravity is shifting – and South Africa is in the frame

      3 March 2026
    • Company Hubs
      • 1Stream
      • Africa Data Centres
      • AfriGIS
      • Altron Digital Business
      • Altron Document Solutions
      • Altron Group
      • Arctic Wolf
      • Ascent Technology
      • AvertITD
      • BBD
      • Braintree
      • CallMiner
      • CambriLearn
      • CM Telecom
      • Contactable
      • CYBER1 Solutions
      • Digicloud Africa
      • Digimune
      • Domains.co.za
      • ESET
      • Euphoria Telecom
      • HOSTAFRICA
      • Incredible Business
      • iONLINE
      • IQbusiness
      • Iris Network Systems
      • Kaspersky
      • LSD Open
      • Mitel
      • NEC XON
      • Netstar
      • Network Platforms
      • Next DLP
      • Ovations
      • Paracon
      • Paratus
      • Q-KON
      • SevenC
      • SkyWire
      • Solid8 Technologies
      • Telit Cinterion
      • Telviva
      • Tenable
      • Vertiv
      • Videri Digital
      • Vodacom Business
      • Wipro
      • Workday
      • XLink
    • Sections
      • AI and machine learning
      • Banking
      • Broadcasting and Media
      • Cloud services
      • Contact centres and CX
      • Cryptocurrencies
      • Education and skills
      • Electronics and hardware
      • Energy and sustainability
      • Enterprise software
      • Financial services
      • HealthTech
      • Information security
      • Internet and connectivity
      • Internet of Things
      • Investment
      • IT services
      • Lifestyle
      • Motoring
      • Policy and regulation
      • Public sector
      • Retail and e-commerce
      • Satellite communications
      • Science
      • SMEs and start-ups
      • Social media
      • Talent and leadership
      • Telecoms
    • Events
    • Advertise
    TechCentralTechCentral
    Home » In-depth » Clarity soon on R1bn telecoms fund

    Clarity soon on R1bn telecoms fund

    By Editor20 July 2010
    Twitter LinkedIn Facebook WhatsApp Email Telegram Copy Link
    News Alerts
    WhatsApp
    Usaasa CEO Phineas Moleele

    There will soon be clarity on how hundreds of millions of rand in the Universal Service Fund will be spent. The money is meant to be used to facilitate the roll-out of telecommunications infrastructure in underserviced and rural parts of SA, but has remained largely untapped for years.

    Now Phineas Moleele, the newly appointed CEO at the Universal Service & Access Agency of SA (Usaasa), the government body established to administer the fund, is promising to start using more of the money.

    The Universal Service Fund has as much R1bn in its coffers — and possible even more. The precise amount is the subject of discussions between the agency’s new management and national treasury, which keeps control of the purse strings, Moleele says.

    Moleele, speaking exclusively to TechCentral, says efforts by government — especially those involving communications minister Siphiwe Nyanda and his director-general Mamodupi Mohlala — will result in a more co-ordinated approach to how the money is spent and how much is spent.

    Until now, Usaasa has used very little of the money in the Universal Service Fund. It must justify its spending plans each year before it is given access to any of the funds.

    But there’s been little co-ordination between the different spheres of government — national, provincial and local — and between central government departments over where investment needs to be directed.

    Moleele, who has years of industry experience having worked at the Independent Communications Authority of SA (Icasa) in senior roles, promises that Usaasa will present a concrete roadmap detailing its spending plans by no later than October.

    He says also that spending will be stepped up dramatically to support the construction of telecoms infrastructure in areas that are poorly served.

    Moleele says the piecemeal approach to solving the so-called digital divide — where companies and government agencies and departments acted in silos — have contributed to problems.

    Already, Nyanda has secured an increase in Usaasa’s budget. It has about R200m it can spend this financial year, up from between R40m and R60m in previous years. However, some of the new funds must be used for digital migration.

    Now Moleele says he wants the private sector to work much more closely with Usaasa in its spending. Operators — both incumbent and small and medium enterprises — will be asked to work with the agency in providing services in uneconomical areas.

    The agency will also participate actively in government discussions around a national broadband strategy. This strategy document, when it is produced, will help inform Usaasa of where funds should be directed, Moleele says. Those talks are expected to get off the ground in the next few weeks.

    The department of communications’ recent publication of a broadband policy document is an important first step in this regard, he says. It will form the basis on which government sets out its national broadband strategy.

    Telecoms operators currently contribute 0,2% of their annual revenue to the Universal Service Fund. They’ll no doubt welcome signs of life at Usaasa, which had become moribund under former CEO James Theledi and his predecessors. The agency’s board axed Theledi last year following charges of sexual harassment brought by an Usaasa employee.

    Some companies have begun to express frustration privately that the fund is not being used effectively or sufficiently.

    Others have raised concern that Nyanda wants to use part of the fund to subsidise digital television set-top boxes. They’re worried that money raised from telecoms companies will be used to fund broadcasting. They want to see the money reinvested in telecoms instead.

    But Moleele says the set-top boxes that government wants to subsidise as the country moves from analogue to digital terrestrial broadcasting may include a “return path”, requiring telecoms links. If that happens, he suggests the operators may not have a strong case to argue. Also, it’s the minister’s legal prerogative to direct how the fund’s money should be spent, he says.

    Moleele says there is already some clarity about where Usaasa will direct its spending in the next few years. He says digital television is one focus area; others include extending telecoms networks into underserviced areas using “competitive bidding processes” where licensed operators are asked to bid to provide services. The bidder that can do the work for the least subsidy from Usaasa wins the contract.

    This process will be used to provide connectivity to schools, Moleele says.

    There’s also an upcoming project to build community access centres. Usaasa will soon award a tender for the construction of 100 such centres across the country.  — Duncan McLeod, TechCentral

    • Subscribe to our free daily newsletter
    • Follow us on Twitter or on Facebook
    Follow TechCentral on Google News Add TechCentral as your preferred source on Google


    James Theledi Phineas Moleele Universal Service & Access Agency of SA Usaasa
    WhatsApp YouTube
    Share. Facebook Twitter LinkedIn WhatsApp Telegram Email Copy Link
    Previous ArticleEassy live, but consumers must wait
    Next Article A new Dimension

    Related Posts

    Communications minister Solly Malatsi. Image c/o DCDT

    Usaasa’s 30-year run nears its end

    23 April 2026
    How a connectivity levy became a tax on telecoms

    How a connectivity levy became a tax on telecoms

    17 April 2026
    Usaasa publishes framework for universal service fund

    Usaasa publishes framework for universal service fund

    24 February 2026
    Company News
    Why the security operations centre is now a boardroom issue - Chris Norton Kaspersky

    Why the security operations centre is now a boardroom issue

    18 May 2026
    Netstar brings coding and robotics to inner-city Joburg - Collin Govender, Altron Group chief operating officer; Leona Pienaar, MES CEO; Marisa Jansen van Vuuren, Altron Group chief marketing officer; Innocent Mabusela, Jozi My Jozi CEO; and Warren Mande, incoming Netstar MD

    Netstar brings coding and robotics to inner-city Joburg

    18 May 2026
    7 key digital platforms to market your business online - Domains.co.za

    7 key digital platforms to market your business online

    14 May 2026
    Opinion
    Free calls, dead voice and Shameel Joosub's Spanish ghost - Duncan McLeod

    Free calls, dead voice and Shameel Joosub’s Spanish ghost

    22 April 2026
    The conflict of interest at the heart of PayShap's slow adoption - Cheslyn Jacobs

    The conflict of interest at the heart of PayShap’s slow adoption

    26 March 2026
    South Africa's energy future hinges on getting wheeling right - Aishah Gire

    South Africa’s energy future hinges on getting wheeling right

    10 March 2026

    Subscribe to Updates

    Get the best South African technology news and analysis delivered to your e-mail inbox every morning.

    Latest Posts
    Bitcoin firm headed to JSE main board - Africa Bitcoin Corporation

    Bitcoin firm headed to JSE main board

    18 May 2026

    Activists challenge 160MW Cape Town data centre project

    18 May 2026
    South Africa leads rest of Africa in AI adoption - Microsoft

    South Africa leads rest of Africa in AI adoption – Microsoft

    18 May 2026
    The toll booth at the bottom of the sea - The Strait of Hormuz at the entrance to the Persian Gulf

    The toll booth at the bottom of the sea

    18 May 2026
    © 2009 - 2026 NewsCentral Media
    • Cookie policy (ZA)
    • TechCentral – privacy and Popia

    Type above and press Enter to search. Press Esc to cancel.

    Manage consent

    TechCentral uses cookies to enhance its offerings. Consenting to these technologies allows us to serve you better. Not consenting or withdrawing consent may adversely affect certain features and functions of the website.

    Functional Always active
    The technical storage or access is strictly necessary for the legitimate purpose of enabling the use of a specific service explicitly requested by the subscriber or user, or for the sole purpose of carrying out the transmission of a communication over an electronic communications network.
    Preferences
    The technical storage or access is necessary for the legitimate purpose of storing preferences that are not requested by the subscriber or user.
    Statistics
    The technical storage or access that is used exclusively for statistical purposes. The technical storage or access that is used exclusively for anonymous statistical purposes. Without a subpoena, voluntary compliance on the part of your Internet Service Provider, or additional records from a third party, information stored or retrieved for this purpose alone cannot usually be used to identify you.
    Marketing
    The technical storage or access is required to create user profiles to send advertising, or to track the user on a website or across several websites for similar marketing purposes.
    • Manage options
    • Manage services
    • Manage {vendor_count} vendors
    • Read more about these purposes
    View preferences
    • {title}
    • {title}
    • {title}