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
      Cabinet hands the Post Office a board, but not a bailout

      Cabinet hands the Post Office a board, but not a bailout

      5 June 2026
      In South Africa, the bundle is the new battleground

      In South Africa, the bundle is the new battleground

      5 June 2026
      Bash powers TFG online sales as group profit tumbles

      Bash powers TFG online sales as group profit tumbles

      5 June 2026
      Surplus groceries, straight from the browser - Still Good co-founders Lorenzo Parisi and Nabeel Gool

      Surplus groceries, straight from the browser

      5 June 2026
      What happens when AI no longer needs us to improve

      What happens when AI no longer needs us to improve

      5 June 2026
    • World
      Meta takes on OpenAI and Anthropic in enterprise AI

      Meta takes on OpenAI and Anthropic in enterprise AI

      4 June 2026
      AI demand sparks 'chipflation' warning

      AI demand sparks ‘chipflation’ warning

      4 June 2026
      Astronomers discover exoplanets with magnetic fields

      Strange winds reveal magnetic fields on distant ‘hot Jupiters’

      2 June 2026
      AI giant Anthropic files for landmark US listing

      AI giant Anthropic files for landmark US listing

      1 June 2026
      Dell guns for MacBook Neo with low-cost laptop

      Dell guns for MacBook Neo with low-cost laptop

      1 June 2026
    • In-depth
      What Wi-Fi 8 will mean for wireless networks

      What Wi-Fi 8 will mean for wireless networks

      1 June 2026
      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
      AI, cybersecurity power standout year for Datatec - Jens Montanana

      The R16-billion tech giant hiding in plain sight

      26 March 2026
    • TCS
      TCS | Charge's R1.8-billion bet on an off-grid EV future - Charge chairman Joubert Roux

      TCS | Charge’s R1.8-billion bet on an off-grid EV future

      18 May 2026
      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
    • Opinion

      Clashing judgments leave South Africa’s crypto law unsettled

      2 June 2026
      The author, Pambos Soteriades

      The trap inside South Africa’s banking MVNO boom

      1 June 2026
      The hidden cost of social media age bans is everyone's privacy - Petrus Potgieter

      The hidden cost of social media age bans is everyone’s privacy

      29 May 2026
      Treasury's crypto crackdown is a betrayal of Mandela's promise - Duncan McLeod

      Treasury’s crypto crackdown is a betrayal of Mandela’s promise

      22 May 2026
      South Africa is sleepwalking into another AI policy failure - Celeste Labuschagne

      South Africa is sleepwalking into another AI policy failure

      20 May 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 » Sections » Telecoms » ‘Intrusive and onerous’: Vodacom slams telecoms bill

    ‘Intrusive and onerous’: Vodacom slams telecoms bill

    By Duncan McLeod27 November 2018
    Twitter LinkedIn Facebook WhatsApp Email Telegram Copy Link
    News Alerts
    WhatsApp

    Vodacom has rubbished the Electronic Communications Amendment Bill’s wholesale open-access provisions, describing them as “intrusive and onerous”.

    “These changes are disproportionate, arbitrary and intrusive,” it said in the submission, ahead of a parliamentary hearing on the draft legislation scheduled for Thursday.

    It has also pointed to research that suggests that South Africa’s GDP could be negatively impacted by as much as R28-billion if the bill is enacted in its current form.

    This is practically the most intrusive intervention possible. It is unprecedented in any other competitive sector in South Africa

    Rival MTN has also pilloried the bill (see article), saying, among other things, that government’s proposal to “impose blanket, cost-based open access on a competitive market” is “draconian and irrational” and warning that government’s policy “U-turn” will have a “devastating effect on the model that delivered R100-billion-plus of investment in the last decade”.

    “We do not agree that virtually all licensees in a competitive market should have to provide open access to all their assets (networks, systems and facilities), whether or not it is reasonable to do so,” Vodacom said in its submission.

    “We do not agree that all mobile operators should provide open access at cost-orientated rates to potentially their entire mobile communications network, systems and services. This is practically the most intrusive intervention possible. It is unprecedented in any other competitive sector in South Africa, as far as we are aware, and is unheard off in any mobile telecoms market around the world, where governments are aiming to incentivise investment to promote mobile broadband.”

    ‘Constitutional shortcomings’

    Communications regulator Icasa, it said, already has the tools it needs to achieve government’s objectives and it should use these instead of the bill “circumventing the balanced regulatory framework in chapters 8 and 10” of the Electronic Communications Act. The existing act is “fit for purpose and does not require radical change as proposed in the bill”.

    Like MTN, Vodacom said the bill contains “severe constitutional shortcomings”. For one thing, it violates the independence of Icasa, which is enshrined in the constitution. For another, it entails “several violations of basic requirements of the rule of law, that laws be clear and not vague, and that they not be arbitrary”.

    “The bill also entails unjustifiable arbitrary deprivation of property,” Vodacom said.

    It said the best way of increasing broadband coverage, reducing prices, and fostering innovation and transformation (all objectives of the amendment bill) is by promoting investment and network competition “within the best practice regulatory framework in the current act and not through the changes contemplated in the bill”.

    It said a policy direction issued to communications regulator Icasa by former telecoms minister Siyabonga Cwele should proceed as it represents a move in the “right direction”.

    “It envisages the establishment of the Woan and the licensing of the unassigned high-demand spectrum under the existing act,” Vodacom said. “We agree with much of what is broadly contemplated by the policy direction…”

    Any attempt to introduce multiparty sharing of a harmonised mobile band is likely to lead to unplanned network interference…

    The Woan, or wholesale open-access network, is a plan by government to create a new infrastructure operator in South Africa. Government had initially wanted to give all mobile broadband spectrum to the Woan, to the exclusion of commercial operators, but has since backed away from that position.

    “(The policy direction) will promote an investor-friendly environment, without detracting from the transformation and universal access objectives, and enable the timely and efficient roll-out of much needed broadband network and new technologies for the benefit of consumers and the whole South African economy,” Vodacom said.

    Vodacom warned that the bill’s “novel concept” of wholesale open-access and mandated non-exclusive rights to spectrum “will yield no efficiency gains or benefits for well-designed mobile networks”.

    “On the contrary, any attempt to introduce multiparty sharing of a harmonised mobile band is likely to lead to unplanned network interference, even for a wholesale-only entity such as the Woan.”

    ‘Constrained’

    Vodacom asked Frontier Economics to provide an “empirical analysis” to quantify the economic impact of the bill. The firm found that if the bill were to be fully implemented, South Africa’s mobile market would become “constrained by increased regulatory uncertainty, lower and delayed investment, and much slower deployment of new mobile technologies”.

    Frontier warned of a significant risk that network competition will be distorted through preferential treatment of the Woan at the expense of competition and ultimately South African consumers.

    The slower deployment of next-generation mobile technologies will have a wider negative economic impact…

    It said mobile data prices will be up to 16% higher with the bill as a result of increased unit costs through slower migration to new technologies. As a result of these higher prices, usage of mobile data will be significantly lower under the bill, with usage being between 6% and 16% lower than without the bill over the period 2025 to 2030.

    “This translates to the average consumer in South Africa consuming 415MB less data per month by 2030. These impacts could translate to a significant reduction in consumer benefits, with an estimated loss in consumer surplus from 2020 to 2040 of R45-billion in net-present-value terms. The loss in consumer surplus would still be significant, even when considering potential benefits from the bill, with the ‘net’ loss in consumer surplus estimated at R32-billion,” Frontier Economics said.

    “The slower deployment of next-generation mobile technologies will also have a wider negative economic impact because of the pivotal role broadband plays in supporting economic development and growth…”

    Frontier Economics estimated the following negative impacts under the bill: GDP will be lower by between R12-billion and R28-billion; tax receipts will be between R3-billion and R8-billion lower; and thirty thousand fewer jobs will be created the transitional period and 16 000 to 36 000 fewer jobs will be created in the longer term.  — © 2018 NewsCentral Media

    • Now read: MTN pillories ‘draconian and irrational’ telecoms bill
    Follow TechCentral on Google News Add TechCentral as your preferred source on Google


    Icasa MTN top Vodacom
    WhatsApp YouTube
    Share. Facebook Twitter LinkedIn WhatsApp Telegram Email Copy Link
    Previous ArticleHerman Singh said to be leaving MTN
    Next Article MTN pillories ‘draconian and irrational’ telecoms bill

    Related Posts

    In South Africa, the bundle is the new battleground

    In South Africa, the bundle is the new battleground

    5 June 2026
    The real cloud challenge isn't adoption – it's doing it well

    The real cloud challenge isn’t adoption – it’s doing it well

    5 June 2026
    The MVNO trap deepens as the battle moves to data

    The MVNO trap deepens as the battle moves to data

    4 June 2026
    Company News
    The real hurdle for South Africa's AI voicebots isn't the AI - 1Stream

    The real hurdle for South Africa’s AI voicebots isn’t the AI

    5 June 2026
    The real cloud challenge isn't adoption – it's doing it well

    The real cloud challenge isn’t adoption – it’s doing it well

    5 June 2026
    Payments Live returns to Johannesburg for 2nd edition

    Payments Live returns to Johannesburg for 2nd edition

    4 June 2026
    Opinion

    Clashing judgments leave South Africa’s crypto law unsettled

    2 June 2026
    The author, Pambos Soteriades

    The trap inside South Africa’s banking MVNO boom

    1 June 2026
    The hidden cost of social media age bans is everyone's privacy - Petrus Potgieter

    The hidden cost of social media age bans is everyone’s privacy

    29 May 2026

    Subscribe to Updates

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

    Latest Posts
    Cabinet hands the Post Office a board, but not a bailout

    Cabinet hands the Post Office a board, but not a bailout

    5 June 2026
    In South Africa, the bundle is the new battleground

    In South Africa, the bundle is the new battleground

    5 June 2026
    Bash powers TFG online sales as group profit tumbles

    Bash powers TFG online sales as group profit tumbles

    5 June 2026
    Surplus groceries, straight from the browser - Still Good co-founders Lorenzo Parisi and Nabeel Gool

    Surplus groceries, straight from the browser

    5 June 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}