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
      Africa Bitcoin Corporation board quits in shareholder clash - Stafford Masie

      Africa Bitcoin Corporation board quits in shareholder clash

      12 October 2026
      Capitec is setting traps for scammers' mule accounts - Andrew Baker

      Capitec is setting traps for scammers’ mule accounts

      12 October 2026
      Sars to pay Microsoft and IBM R2.75-billion in sole-source deals

      Sars to pay Microsoft and IBM R2.75-billion in sole-source deals

      12 October 2026
      Microsoft president says milk faces more regulation than AI - President Cyril Ramaphosa with Microsoft president and vice chairman Brad Smith

      Microsoft president says milk faces more regulation than AI

      12 October 2026
      Xiaomi wants to sell South Africans a lot more than phones - Tianshi Lv

      Xiaomi wants to sell South Africans a lot more than phones

      12 October 2026
    • World
      AI is now holding up the world economy, says IMF

      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
      The AI PC is finally here. It's just very expensive - Jensen Huang, Satya Nadella

      The AI PC is finally here. It’s just very expensive

      8 October 2026
      The memory crunch is making Samsung fabulously rich

      The memory crunch is making Samsung fabulously rich

      8 October 2026
      SpaceX to borrow $40-billion to buy Nvidia chips

      SpaceX to borrow $40-billion to buy Nvidia chips

      7 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
      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
      TCS | Dominic White and Adam Ely on AI agents going rogue

      TCS | Dominic White and Adam Ely on AI agents going rogue

      29 September 2026
    • Opinion
      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
      Let South Africans jailbreak their way to digital sovereignty - Dirk de Vos

      Regulating AI: apply the laws we have first

      21 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
      • 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 » News » Neotel wants R100m licence fee scrapped

    Neotel wants R100m licence fee scrapped

    By Editor7 July 2010
    Twitter LinkedIn Facebook WhatsApp Email Telegram Copy Link
    Get breaking news on WhatsApp

    Telecommunications operator Neotel is in discussions with the Independent Communications Authority of SA (Icasa) to have the once-off R100m licence fee it is liable for scrapped.

    “We are working amicably with the regulator to try and clarify the regulations,” says Tracy Cohen, Neotel’s executive head of regulatory affairs.

    Like all incumbent operators, Neotel was awarded its licence on the condition that it paid the large, once-off fee. Neotel was due to settle the licence fee over a period of years.

    The company was licensed in 2005 as SA’s second fixed-line network operator in a regulatory environment in which it expected to enjoy a duopoly for several years.

    However, the high court judgment in favour of technology group Altech in 2008 and against former communications minister Ivy Matsepe-Casaburri threw open the market to competition. The judgment had the effect of handing more than 300 companies the same basic licence as Neotel and competitors MTN, Vodacom, Cell C and Telkom.

    The court determined that once-off licence fees were no longer applicable and fees should be based on the income and expenses of a company.

    Icasa then promulgated new licence fee regulations, charging licensees an annual amount of 1,5% of gross profit.

    There is still a clause in the regulations governing the once-off fee. However, the clause is not clear about whether any outstanding amount on Neotel’s R100m licence fee should be written off or whether it should be paid in full.

    Neotel and Icasa have different interpretations of the clause and have not yet come to a mutual decision. However, the two parties will meet next week to try to clarify the situation.

    If Icasa and Neotel still can’t agree, they have decided to go to court to have the matter judicially settled.

    “The court will be requested to provide both parties with its interpretation to assist the parties moving forward,” says Icasa spokesman Paseka Maleka.

    Communications technology lawyer Kerron Edmunson says having Neotel’s once-off licence fee scrapped makes sense as none of the more than 300 converted licensees were asked to pay it.

    “The network licence had far more value when Neotel was the only direct competitor to Telkom,” she says.

    Edmunson agrees the regulations are ambiguous and it would be good to get some clarity on what they mean.

    Denis Smit, MD of consulting firm BMI-TechKnowledge, says even though Icasa and Neotel seem to be working together on the issue, it is unlikely a resolution will be found without the courts.

    He says both Icasa and Neotel are in a tough situation. “If Neotel is expected to be held to this licence fee, then it should be applicable to all the others,” he says.

    Cohen says she is confident the parties will come to an agreement soon.  — Candice Jones, TechCentral

    • Subscribe to our free daily newsletter
    • Follow us on Twitter or on Facebook
    Add TechCentral as a preferred source on GoogleFollow TechCentral on Google NewsGet breaking news on WhatsApp


    BMI-TechKnowledge Cell C Denis Smit Icasa Kerron Edmunson MTN Neotel Paseka Maleka Telkom Tracy Cohen Vodacom
    WhatsApp YouTube
    Share. Facebook Twitter LinkedIn WhatsApp Telegram Email Copy Link
    Previous ArticleIcasa Amendment Bill under fire
    Next Article The fibre’s coming

    Related Posts

    Sars to pay Microsoft and IBM R2.75-billion in sole-source deals

    Sars to pay Microsoft and IBM R2.75-billion in sole-source deals

    12 October 2026
    Bookmakers to ISPs: stop debating, start blocking

    Malatsi can’t use telecoms rules to curb lawful gambling, lawyer warns

    12 October 2026
    Shoprite takes on the banking apps with airtime on Sixty60

    Shoprite takes on the banking apps with airtime on Sixty60

    9 October 2026
    Company News
    Why fintechs need an insurance partner they can trust - Hollard Insurance

    Why fintechs need an insurance partner they can trust

    8 October 2026
    Reusable KYC means the end of 'please upload your ID' - Contactable

    Reusable KYC means the end of ‘please upload your ID’

    8 October 2026
    Eliminating the 'toggle tax': how CRM integration changes customer experience - Martie de Beer

    Eliminating the ‘toggle tax’: how CRM integration changes customer experience

    8 October 2026
    Opinion
    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

    Subscribe to Updates

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

    Latest Posts
    Africa Bitcoin Corporation board quits in shareholder clash - Stafford Masie

    Africa Bitcoin Corporation board quits in shareholder clash

    12 October 2026
    Capitec is setting traps for scammers' mule accounts - Andrew Baker

    Capitec is setting traps for scammers’ mule accounts

    12 October 2026
    Sars to pay Microsoft and IBM R2.75-billion in sole-source deals

    Sars to pay Microsoft and IBM R2.75-billion in sole-source deals

    12 October 2026
    Microsoft president says milk faces more regulation than AI - President Cyril Ramaphosa with Microsoft president and vice chairman Brad Smith

    Microsoft president says milk faces more regulation than AI

    12 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