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
      Vuyani Jarana: Mobile coverage masks a deeper broadband failure

      Vuyani Jarana: Mobile coverage masks a deeper broadband failure

      30 January 2026
      SABC Plus to flight Microsoft AI training videos

      SABC Plus to flight Microsoft AI training videos

      30 January 2026
      Fibre ducts

      Fibre industry consolidation in KZN

      30 January 2026
      Watts & Wheels S1E3: 'BYD's Corolla Cross challenger'

      Watts & Wheels S1E3: ‘BYD’s Corolla Cross challenger’

      30 January 2026
      What ordinary South Africans really think of AI

      What ordinary South Africans really think of AI

      30 January 2026
    • World
      Apple acquires audio AI start-up Q.ai

      Apple acquires audio AI start-up Q.ai

      30 January 2026
      SpaceX IPO may be largest in history

      SpaceX IPO may be largest in history

      28 January 2026
      Nvidia throws AI at the weather

      Nvidia throws AI at weather forecasting

      27 January 2026
      Debate erupts over value of in-flight Wi-Fi

      Debate erupts over value of in-flight Wi-Fi

      26 January 2026
      Intel takes another hit - Intel CEO Lip-Bu Tan. Laure Andrillon/Reuters

      Intel takes another hit

      23 January 2026
    • In-depth
      How liberalisation is rewiring South Africa's power sector

      How liberalisation is rewiring South Africa’s power sector

      21 January 2026
      The top-performing South African tech shares of 2025

      The top-performing South African tech shares of 2025

      12 January 2026
      Digital authoritarianism grows as African states normalise internet blackouts

      Digital authoritarianism grows as African states normalise internet blackouts

      19 December 2025
      TechCentral's South African Newsmakers of 2025

      TechCentral’s South African Newsmakers of 2025

      18 December 2025
      Black Friday goes digital in South Africa as online spending surges to record high

      Black Friday goes digital in South Africa as online spending surges to record high

      4 December 2025
    • TCS
      TCS+ | How Cloud On Demand is helping SA businesses succeed in the cloud - Xhenia Rhode, Dion Kalicharan

      TCS+ | Cloud On Demand and Consnet: inside a real-world AWS partner success story

      30 January 2026
      Watts & Wheels S1E3: 'BYD's Corolla Cross challenger'

      Watts & Wheels S1E2: ‘China attacks, BMW digs in, Toyota’s sublime supercar’

      23 January 2026

      TCS+ | Why cybersecurity is becoming a competitive advantage for SA businesses

      20 January 2026
      Watts & Wheels S1E3: 'BYD's Corolla Cross challenger'

      Watts & Wheels: S1E1 – ‘William, Prince of Wheels’

      8 January 2026
      TCS+ | Africa's digital transformation - unlocking AI through cloud and culture - Cliff de Wit Accelera Digital Group

      TCS+ | Cloud without culture won’t deliver AI: Accelera’s Cliff de Wit

      12 December 2025
    • Opinion
      South Africa's skills advantage is being overlooked at home - Richard Firth

      South Africa’s skills advantage is being overlooked at home

      29 January 2026
      Why Elon Musk's Starlink is a 'hard no' for me - Songezo Zibi

      Why Elon Musk’s Starlink is a ‘hard no’ for me

      26 January 2026
      South Africa's new fibre broadband battle - Duncan McLeod

      South Africa’s new fibre broadband battle

      20 January 2026
      AI moves from pilots to production in South African companies - Nazia Pillay SAP

      AI moves from pilots to production in South African companies

      20 January 2026
      South Africa's new fibre broadband battle - Duncan McLeod

      ANC’s attack on Solly Malatsi shows how BEE dogma trumps economic reality

      14 December 2025
    • Company Hubs
      • Africa Data Centres
      • AfriGIS
      • Altron Digital Business
      • Altron Document Solutions
      • Altron Group
      • Arctic Wolf
      • AvertITD
      • Braintree
      • CallMiner
      • CambriLearn
      • CYBER1 Solutions
      • Digicloud Africa
      • Digimune
      • Domains.co.za
      • ESET
      • Euphoria Telecom
      • Incredible Business
      • iONLINE
      • IQbusiness
      • Iris Network Systems
      • LSD Open
      • NEC XON
      • Netstar
      • Network Platforms
      • Next DLP
      • Ovations
      • Paracon
      • Paratus
      • Q-KON
      • SevenC
      • SkyWire
      • Solid8 Technologies
      • Telit Cinterion
      • 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
      • Information security
      • Internet and connectivity
      • Internet of Things
      • Investment
      • IT services
      • Lifestyle
      • Motoring
      • 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


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

    Related Posts

    Solly Malatsi shakes up Usaasa board

    Solly Malatsi shakes up Usaasa board

    16 October 2025

    Digital TV project in peril as installers warn of set-top box fiasco

    30 January 2025
    Icasa to target Sentech with tougher broadcast pricing rules

    220 000 set-top boxes, 63 days: Sentech’s mission impossible?

    27 January 2025
    Company News
    Huawei turns 25 in South Africa, celebrates with major device discounts

    Huawei turns 25 in South Africa, celebrates with major device discounts

    30 January 2026
    Phishing has not disappeared, but it has grown up - KnowBe4

    Phishing has not disappeared, but it has grown up

    30 January 2026
    Smartphone affordability: South Africa's new economic divide - PayJoy

    Smartphone affordability: South Africa’s new economic divide

    29 January 2026
    Opinion
    South Africa's skills advantage is being overlooked at home - Richard Firth

    South Africa’s skills advantage is being overlooked at home

    29 January 2026
    Why Elon Musk's Starlink is a 'hard no' for me - Songezo Zibi

    Why Elon Musk’s Starlink is a ‘hard no’ for me

    26 January 2026
    South Africa's new fibre broadband battle - Duncan McLeod

    South Africa’s new fibre broadband battle

    20 January 2026

    Subscribe to Updates

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

    Latest Posts
    Vuyani Jarana: Mobile coverage masks a deeper broadband failure

    Vuyani Jarana: Mobile coverage masks a deeper broadband failure

    30 January 2026
    TCS+ | How Cloud On Demand is helping SA businesses succeed in the cloud - Xhenia Rhode, Dion Kalicharan

    TCS+ | Cloud On Demand and Consnet: inside a real-world AWS partner success story

    30 January 2026
    Huawei turns 25 in South Africa, celebrates with major device discounts

    Huawei turns 25 in South Africa, celebrates with major device discounts

    30 January 2026
    SABC Plus to flight Microsoft AI training videos

    SABC Plus to flight Microsoft AI training videos

    30 January 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}