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
      DStv's South African revenue keeps sliding as Canal+ bets on new packages

      DStv’s South African revenue keeps sliding

      22 October 2026
      Global coalition aims to make smartphones more affordable

      South Africa’s digital ID could change how you pay

      22 October 2026
      AI's boardroom honeymoon is over - Gary Stocks

      AI’s boardroom honeymoon is over

      22 October 2026
      4Sight revenue jumps 29%, but software resale squeezes margins

      4Sight revenue jumps 29%, but software resale squeezes margins

      22 October 2026
      Rand stablecoin issuers welcome treasury's crypto rethink

      Rand stablecoin issuers welcome treasury’s crypto rethink

      22 October 2026
    • World
      OpenAI turns the tables on Apple in trade secrets fight

      OpenAI turns the tables on Apple in trade secrets fight

      15 October 2026
      Google's Gemini 4 Argon is finally here

      Google’s Gemini 4 Argon is finally here

      14 October 2026
      Apple's new HomeView smart home hub

      Apple takes another shot at the smart home

      13 October 2026
      AI

      AI is now propping up the world economy, says IMF

      12 October 2026
      SpaceX takes aim at US wireless carriers with spectrum acquisition

      Starlink is coming for your mobile operator

      9 October 2026
    • In-depth

      10 days that changed the course of AI

      21 September 2026
      Meta to the AI industry: slow down without us - Mark Zuckerberg

      Meta to the AI industry: slow down without us

      16 September 2026
      Google DeepMind CEO Demis Hassabis. Image: John Sears

      The plan to stop AI from breaking the world

      16 July 2026
      The internet has a Strait of Hormuz problem

      The internet has a Strait of Hormuz problem

      15 July 2026
      AI boom sparks rally, frenzy and fear

      AI boom sparks rally, frenzy and fear

      11 June 2026
    • TCS
      TCS+ | Boards are underestimating the cost of a cyberattack, says Arctic Wolf - Jason Oehley and Andre Den Hond

      TCS+ | Boards are underestimating the cost of a cyberattack, says Arctic Wolf

      22 October 2026
      W&W | LDV's Gerhard Moolman on electric bakkies, fleet orders and 'school fees'

      W&W | LDV’s Gerhard Moolman on electric bakkies and fleets

      9 October 2026
      TCS | Frogfoot sees bigger fibre deals coming - TechCentral Show guests Abraham van der Merwe and Shane Chorley

      TCS | Frogfoot sees bigger fibre deals coming

      8 October 2026
      Meet the CIO | Vodacom's Mohamed Sami on the agentic future

      Meet the CIO | Vodacom’s Mohamed Sami on the agentic future

      5 October 2026
      Lexi Novitske, general partner at Norrsken22, on the TechCentral Show

      TCS | Norrsken22’s Lexi Novitske on how China is winning African tech

      1 October 2026
    • Opinion
      Nonkqubela Thathakahle Jordan-Dyani

      Why cybersecurity is now a national security issue for South Africa

      15 October 2026
      When a machine can choose, who does it become? Fanie van Rooyen

      When a machine can choose, who does it become?

      9 October 2026
      Let South Africans jailbreak their way to digital sovereignty - Dirk de Vos

      Let South Africans jailbreak their way to digital sovereignty

      5 October 2026
      South Africa's next energy crisis is in the accounts department - Craig Holmes

      South Africa’s next energy crisis is in the accounts department

      29 September 2026
      The steam engine lesson AI doomsayers keep missing - Sam Clarke

      The steam engine lesson AI doomsayers keep missing

      28 September 2026
    • Company News
      • 1Stream
      • Africa Data Centres
      • AfriGIS
      • Altron Digital Business
      • Altron Document Solutions
      • Altron Group
      • Arctic Wolf
      • Ascent Technology
      • AvertITD
      • BBD
      • Braintree
      • CallMiner
      • CambriLearn
      • CM.com
      • 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
      • Publishared
      • Q-KON
      • SevenC
      • SkyWire
      • Solid8 Technologies
      • Telit Cinterion
      • Telviva
      • Tenable
      • Vertiv
      • Videri Digital
      • Vodacom Business
      • Vox
      • 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
      • Fintech and payments
      • HealthTech
      • Information security
      • Internet and connectivity
      • Internet of things
      • Investment
      • IT services
      • Lifestyle
      • Policy and regulation
      • Public sector
      • Retail and e-commerce
      • Satellite communications
      • Science
      • SMEs and start-ups
      • Social media
      • Talent and leadership
      • Telecoms
      • Watts & Wheels
    • Events
    • Advertise
    TechCentralTechCentral
    Home » In-depth » Fears as Usaasa ‘tax’ set to rise

    Fears as Usaasa ‘tax’ set to rise

    By Sunil Gopal25 May 2015
    Twitter LinkedIn Facebook WhatsApp Email Telegram Copy Link
    Get breaking news on WhatsApp

    money-640

    Telecommunications & postal services minister Siyabonga Cwele presented his budget vote speech last week and concealed among the details is a ticking time bomb that’s about to go off on mobile operators, broadcasters and Internet service providers.

    Cwele announced he would “review the levy for the Universal Service & Access Fund (Usaf) … to align ourselves to the 1% charged by developing countries”.

    The Electronic Communications Act of 2002 requires all licence holders to contribute 0,2% of their turnover to the Usaf.

    The change is bound to have big implications for mobile operators in particular, whose revenues run into tens of billions of rand.

    Telecoms operators are cautious about the minister’s proposal.

    Vodacom spokesman Richard Boorman said the company was still studying it. Using Vodacom’s latest figures, TechCentral calculates that its payments into the Usaf will increase from about R125m to about R620m/year.

    MTN chief corporate services officer Graham de Vries said only: “MTN takes note of the minister of telecommunications’ budget vote speech and is currently studying it. We hope to engage further with the ministry on this matter.”

    Telkom spokesman Jacqui O’Sullivan said it would support a review of the regulatory framework governing the fund.

    “We will work with the department … in their review process and will continue to contribute to the fund in support of its objectives,” she said.

    “We will also be able to provide a more informed view of the impact of the proposed levy increase once we have clarity on the changes and have conducted an impact assessment.”

    Cell C spokesman Karin Fourie said the operator would not support an increase in the contributions.

    The intended beneficiary of the increase is the Universal Service & Access Agency (Usaasa), an agency with a chequered history.

    The last few years has seen Usaasa enveloped in allegations of corruption involving both the boards and recent CEOs and other officials. Such has been the malaise that the national treasury decreased its funding from a high of R83,1m in the 2011/2012 financial year to R60,1m in the 2013/14 period.

    The Special Investigating Unit is probing a host of allegations against Usaasa, including “serious maladministration in connection with the affairs of the agency and its board”.

    In addition to providing telecoms infrastructure in underserviced parts of South Africa, Usaasa is tasked with managing the roll-out of government-subsidised set-top boxes for digital terrestrial television migration, a process that has also been mired in controversy.

    The minister’s announcement is in keeping with the proposals of the ICT policy review report released in March this year. Legislation allows for the collection of monies via national treasury and for its distribution through the department.

    However, the report recommends that the Usaf be transformed into the ICT Development Fund, which would “allow for the aggregation of new incremental state funding with private sector funding and donor funding”.

    In addition, it proposes that Usaasa be dissolved with policy and regulatory functions distributed between the department of telecoms and communications regulator Icasa respectively. Importantly, it wants a new entity to collect and manage the funds.

    Internet Service Providers’ Association regulatory advisor Dominic Cull said the concern for most licensees is the “opaque nature of the Usaf and the widely held perception that funds contributed to date have not been constructively applied or properly accounted for”.

    He agreed with the need to reform both Usaasa and the Usaf in line with the policy review process and reiterated the need for “transparent funding” processes.

    Lisa Thornton
    Lisa Thornton

    “An increase as proposed will ultimately increase the cost to communicate: in a sense it is an indirect tax on communications consumption and therefore must be rationally applied.”

    Cull said the Minister’s statement “comes at a time where there remain questions as to how the broadband network deployment initiative announced by the president in his state-of-the-nation address will be funded”.

    “It is to be welcomed that there is recognition that the use of Usaf monies to deploy networks should automatically result in such networks — whoever they may be deployed by — must operate on an open-access basis,” he said.

    Electronic communications legal specialist Lisa Thornton said the proposed increase in contributions is not out of line with other countries.

    She cited the example of Uganda and Nigeria, where licensees pay 1% of their turnover to a universal service fund.

    Tanzania and Kenya only pay 0,3% and 0,5% respectively. However, licence holders in the US pay 4% of their turnover, with India paying 5% and Malaysia 6%, she said.

    She said both Icasa and the minister have to follow fair administrative procedures in making sure that consultation with both beneficiaries and operators takes place.

    “The question really is whether the need has been sufficiently evaluated,” Thornton said.  — © 2015 NewsCentral Media

    Add TechCentral as a preferred source on GoogleFollow TechCentral on Google NewsGet breaking news on WhatsApp


    Cell C Dominic Cull Graham de Vries Ispa MTN Siyabonga Cwele Telkom USAF Vodacom
    WhatsApp YouTube
    Share. Facebook Twitter LinkedIn WhatsApp Telegram Email Copy Link
    Previous ArticleMitsubishi Electric to set up shop in SA
    Next Article Vitriol flies as MTN strikers dig in

    Related Posts

    Malatsi asks Icasa to rewrite network-sharing rules

    Malatsi asks Icasa to rewrite network-sharing rules

    22 October 2026
    Vodacom pitches a lighter AI rulebook as Pretoria redraws its policy

    Vodacom pitches a lighter AI rulebook as Pretoria redraws its policy

    21 October 2026
    Why a robotaxi would struggle to make money in Sandton

    Why a robotaxi would struggle to make money in Sandton

    20 October 2026
    Company News
    Innovex 2026: taking opportunity to where potential lives

    Innovex 2026: taking opportunity to where potential lives

    21 October 2026
    How to choose a .co.za domain without paying more later

    How to choose a .co.za domain without paying more later

    20 October 2026
    Winners, from left: Zandile Monaisa (Rand Refinery), Sibongakonke Kheswa (PSG Capital), Stefan Links (Forestry South Africa), Thabang Modiba (Mondelez International), Charmaine Ncube (Razor PR), Shaun Burger-Smal (Bestmed Medical Scheme), Nandipha Ngcobo (Transnet), Tracy Mulwela (Vodacom), Cheryl-Lynn Freeman (Mzansi Business Services), Yasheen Harrielall (Zutari), Valentine Mabaso (Taonga Business Group) and Thabang Thlaku (African Rainbow Minerals). Image: Rising Star Awards

    Celebrating South Africa’s rising stars: the leaders shaping what comes next

    19 October 2026
    Opinion
    Nonkqubela Thathakahle Jordan-Dyani

    Why cybersecurity is now a national security issue for South Africa

    15 October 2026
    When a machine can choose, who does it become? Fanie van Rooyen

    When a machine can choose, who does it become?

    9 October 2026
    Let South Africans jailbreak their way to digital sovereignty - Dirk de Vos

    Let South Africans jailbreak their way to digital sovereignty

    5 October 2026

    Subscribe to Updates

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

    Latest Posts
    DStv's South African revenue keeps sliding as Canal+ bets on new packages

    DStv’s South African revenue keeps sliding

    22 October 2026
    Global coalition aims to make smartphones more affordable

    South Africa’s digital ID could change how you pay

    22 October 2026
    AI's boardroom honeymoon is over - Gary Stocks

    AI’s boardroom honeymoon is over

    22 October 2026
    4Sight revenue jumps 29%, but software resale squeezes margins

    4Sight revenue jumps 29%, but software resale squeezes margins

    22 October 2026
    © 2009 - 2026 NewsCentral Media
    Built and maintained by Chronon
    • 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}
    🇿🇦 Sign up to the TechCentral newsletter