South Africa’s cabinet approved a policy proposal backing “open and shared networks” in its attempt to provide all citizens with better access to Internet services by 2030.
The policy is intended to increase competition between providers by allowing access to telecommunications infrastructure, government communications said by e-mail on behalf of the department of telecommunications & postal services.
“This new regime necessitates a revised licensing framework to accommodate more players and open up the market for more competition,” the department said.
“The new policy environment of open and shared networks will enable competition to be focused at the service level, enabling multiple service providers to provide high quality and innovative products and services to South Africans at affordable rates.”
South Africa’s government allocated R2,5bn to roll out broadband networks across the country over the next three years, telecoms minister Siyabonga Cwele said last month.
Providers such as Telkom, MTN and Vodacom should collaborate on rolling out infrastructure, he said.
Vodacom and MTN have spent billions of rand to build South Africa’s largest networks and gain a competitive advantage over rivals in the past 20 years. A policy of open access may mean them sharing this infrastructure with other carriers.
Vodacom is reviewing the paper, spokesman Byron Kennedy said by text message. MTN spokeswoman Bridget Bhengu didn’t immediately respond to a request for comment.
Radio frequencies will also be subject to open access, according to the policy. Previously mobile spectrum has been assigned to individual carriers that pay for exclusive rights to use it.
“The new spectrum management regime set out in this policy encourages that licensees work together as far as it is practicable,” the policy said. — (c) 2016 Bloomberg LP