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
      Cell C launches 5G

      Cell C launches 5G

      21 August 2026
      MVNOs are doing the heavy lifting at Cell C - Jorges Mendes

      MVNOs are doing the heavy lifting at Cell C

      21 August 2026
      Hot rand is cold comfort for tech buyers

      Hot rand is cold comfort for tech buyers

      21 August 2026
      Joburg says it has bought its way out of an Eskom blackout

      Joburg says it has bought its way out of an Eskom blackout

      21 August 2026
      Management consulting as we know it is over

      Management consulting as we know it is over

      21 August 2026
    • World
      Russia building its own Starlink - and faster than expected - Vadym Skibitskyi

      Russia building its own Starlink – and faster than expected

      11 August 2026
      Meta AI will now tell parents if their teen is in crisis

      Meta AI will now tell parents if their teen is in crisis

      17 July 2026
      IBM shares crash 25% as AI upends software spending - Arvind Krishna

      IBM shares crash 25% as AI upends software spending

      15 July 2026
      Jony Ive's first OpenAI device: an AI smart speaker - Jony Ive and Sam Altman

      Jony Ive’s first OpenAI device: an AI smart speaker

      15 July 2026
      Stripe, Advent in talks to buy PayPal for $53-billion

      Stripe, Advent in talks to buy PayPal for $53-billion

      15 July 2026
    • In-depth
      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
      Every plug-in hybrid on sale in South Africa, ranked by price - Lamborghini Temerario

      Every plug-in hybrid on sale in South Africa, ranked by price

      7 June 2026
      What Wi-Fi 8 will mean for wireless networks

      What Wi-Fi 8 will mean for wireless networks

      1 June 2026
    • TCS
      Meet the CIO | Discovery's Derek Wilcocks on AI, guardrails and growth

      Meet the CIO | Derek Wilcocks on how AI personalised Vitality

      13 August 2026
      TCS | Money just became native to the internet - Steven Boykey Sidley

      TCS | Money just became native to the internet – Steven Boykey Sidley

      12 August 2026
      TCS+ | Specops' Darren James on continuous trust in an AI world

      TCS+ | Specops’ Darren James on continuous trust in an AI world

      7 August 2026
      TCS+ | How AI is turning hardware into a subscription service - Shane van der Merwe Merchant West

      TCS+ | How AI is turning hardware into a subscription service

      6 August 2026
      TCS+ | Why South African workers must become supervisors of digital labour - Accelera Digital Group Cliff de Wit

      TCS+ | Why South African workers must become supervisors of digital labour

      31 July 2026
    • Opinion
      The author, Jannie van Zyl

      Selling vapour is corporate suicide in slow motion

      16 July 2026
      Brazil's online gambling crackdown is a lesson for South Africa

      How Amazon outmanoeuvred Starlink in South Africa

      15 July 2026
      The Popia problem with agentic AI - Herman Haasbroek

      The Popia problem with agentic AI

      14 July 2026
      The author, Fanie van Rooyen

      South Africa can still catch the AI wave – here’s how

      7 July 2026
      The author, Fanie van Rooyen

      The AI utopia South Africa can’t afford

      1 July 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
      • 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
      • Financial services
      • 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 » Sections » Telecoms » MTN pillories ‘draconian and irrational’ telecoms bill

    MTN pillories ‘draconian and irrational’ telecoms bill

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

    Government’s telecommunications bill, if enacted without radical changes, will have a “devastating” effect on the ICT sector, destroying the incentives that have led to almost universal mobile coverage in South Africa.

    That’s according to MTN, which has submitted written comments on the contentious Electronic Communications Amendment Bill ahead of parliamentary hearings on the subject this Thursday.

    Vodacom, in its submission (see article), called on government not to rush the bill through parliament, saying it “should pause and carefully consider the far-reaching (and we say significantly adverse) implications of the bill for the sector and consumers”.

    It will destroy the incentives that have delivered over 98% 3G coverage, a world-class 4G network and growing fibre investment, so jeopardising South Africa’s 5G future

    In its submission, MTN pillories what it calls government’s policy U-turn on infrastructure competition and describes the proposal to “impose blanket, cost-based open access on a competitive market” as “draconian and irrational”. It said this policy U-turn will have a “devastating effect on the model that delivered R100-billion-plus of investment in the last decade”.

    “It will destroy the incentives that have delivered over 98% 3G coverage, a world-class 4G network (currently at 90% coverage, despite no LTE spectrum being released) and growing fibre investment, so jeopardising South Africa’s 5G future.”

    The hard-hitting submissions suggest both Vodacom and MTN are running out of options to push for an overhaul of the draft legislation and are now preparing to tackle government head-on over policy changes they believe will severely undermine the industry.

    ‘Unthinkable’

    “Why would MTN (or any other network player) continue to invest in its fixed and mobile network when it can get access to Telkom’s or Vodacom’s network at no cost?” MTN said its submission.

    “In turn, why would Telkom and Vodacom continue to invest in network expansion and innovation if they get no competitive benefit from it, merely cost-based returns out of MTN (and other service providers)?”

    MTN said such a proposal would be “unthinkable” in any other industry. It was akin to forcing airlines to offer seats to their rivals at cost. “Which airlines would ever invest in aircraft on that basis?”

    It would be like asking automobile manufacturers to build cars for rivals at no cost. “Which automotive manufacturers would ever invest in a factory in South Africa again?” MTN asked.

    The bill is also unconstitutional, it said. It violates the constitution’s property clause, fails to meet the rationality requirement imposed by section 1(c) and section 22, and is “impermissibly vague”.

    It warned that abandoning network competition in favour of a cost-based service model has “no international precedent in telecoms”.

    Too much is at risk by experimenting with untested and unqualified policies for such an important sector and engine of growth

    “Despite a lengthy policy debate, the cost/benefit of this seismic shift has not been quantified, and MTN’s concerns have been consistently ignored.”

    It warned, too, that government’s plan to create a wholesale open-access network, or Woan, is “untested internationally” and “risks reducing competition between networks”.

    “South Africa could become resigned to a common standard, low-quality network (the Woan),” MTN said. “While MTN is supportive of a level playing field hybrid model (where commercial operators and the Woan coexist), a policy that ties the release of excess spectrum to the licensing of a contentious Woan risks delaying the availability of much-needed spectrum for South Africa.”

    It said communications regulator Icasa should set aside spectrum for the Woan and immediately assign spectrum to commercial operators.

    “These issues are as complex as they are critical to South Africa’s economic future. MTN urges that they be debated in a considered manner, not on the rushed timetable that is being proposed. Too much is at risk by experimenting with untested and unqualified policies for such an important sector and engine of growth.” — © 2018 NewsCentral Media

    • Now read: ‘Intrusive and onerous’: Vodacom slams telecoms bill
    Follow TechCentral on Google News Add TechCentral as your preferred source on Google


    Icasa MTN MTN South Africa top Vodacom Woan
    WhatsApp YouTube
    Share. Facebook Twitter LinkedIn WhatsApp Telegram Email Copy Link
    Previous Article‘Intrusive and onerous’: Vodacom slams telecoms bill
    Next Article Amazon unveils own server chips for AWS

    Related Posts

    Cell C launches 5G

    Cell C launches 5G

    21 August 2026
    MVNOs are doing the heavy lifting at Cell C - Jorges Mendes

    MVNOs are doing the heavy lifting at Cell C

    21 August 2026
    Hot rand is cold comfort for tech buyers

    Hot rand is cold comfort for tech buyers

    21 August 2026
    Company News
    Paratus Uganda first to market with Starlink service

    Paratus Uganda first to market with Starlink service

    21 August 2026
    Smarter operations take centre stage at Electra Mining Africa 2026

    Smarter operations take centre stage at Electra Mining Africa 2026

    20 August 2026
    Fidelity turns to Sigfox to spot fires before they start

    Fidelity turns to Sigfox to spot fires before they start

    19 August 2026
    Opinion
    The author, Jannie van Zyl

    Selling vapour is corporate suicide in slow motion

    16 July 2026
    Brazil's online gambling crackdown is a lesson for South Africa

    How Amazon outmanoeuvred Starlink in South Africa

    15 July 2026
    The Popia problem with agentic AI - Herman Haasbroek

    The Popia problem with agentic AI

    14 July 2026

    Subscribe to Updates

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

    Latest Posts
    Cell C launches 5G

    Cell C launches 5G

    21 August 2026
    MVNOs are doing the heavy lifting at Cell C - Jorges Mendes

    MVNOs are doing the heavy lifting at Cell C

    21 August 2026
    Hot rand is cold comfort for tech buyers

    Hot rand is cold comfort for tech buyers

    21 August 2026
    Joburg says it has bought its way out of an Eskom blackout

    Joburg says it has bought its way out of an Eskom blackout

    21 August 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}