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
      MultiChoice scraps annual DStv price hikes for 2026 - David Mignot

      MultiChoice scraps annual DStv price hike

      20 February 2026
      What Gen Z really thinks about the tech world it inherited - Tinashe Mazodze

      What Gen Z really thinks about the tech world it inherited

      20 February 2026
      Showmax 'can't continue' in its current form

      Showmax ‘can’t continue’ in its current form

      20 February 2026
      Free Market Foundation slams treasury's proposed gambling tax

      Free Market Foundation slams treasury’s proposed gambling tax

      20 February 2026
      South Africa's dynamic spectrum breakthrough - Paul Colmer

      South Africa’s dynamic spectrum breakthrough

      20 February 2026
    • World
      Prominent Southern African journalist targeted with Predator spyware

      Prominent Southern African journalist targeted with Predator spyware

      18 February 2026
      More drama in Warner Bros tug of war

      More drama in Warner Bros tug of war

      17 February 2026
      Russia bans WhatsApp

      Russia bans WhatsApp

      12 February 2026
      EU regulators take aim at WhatsApp

      EU regulators take aim at WhatsApp

      9 February 2026
      Musk hits brakes on Mars mission

      Musk hits brakes on Mars mission

      9 February 2026
    • In-depth
      How liberalisation is rewiring South Africa's power sector

      How liberalisation is rewiring South Africa’s power sector

      21 January 2026
      The top-performing South African tech shares of 2025

      The top-performing South African tech shares of 2025

      12 January 2026
      Digital authoritarianism grows as African states normalise internet blackouts

      Digital authoritarianism grows as African states normalise internet blackouts

      19 December 2025
      TechCentral's South African Newsmakers of 2025

      TechCentral’s South African Newsmakers of 2025

      18 December 2025
      Black Friday goes digital in South Africa as online spending surges to record high

      Black Friday goes digital in South Africa as online spending surges to record high

      4 December 2025
    • TCS
      Watts & Wheels S1E4: 'We drive an electric Uber'

      Watts & Wheels S1E4: ‘We drive an electric Uber’

      10 February 2026
      TCS+ | How Cloud On Demand is helping SA businesses succeed in the cloud - Xhenia Rhode, Dion Kalicharan

      TCS+ | Cloud On Demand and Consnet: inside a real-world AWS partner success story

      30 January 2026
      Watts & Wheels S1E4: 'We drive an electric Uber'

      Watts & Wheels S1E3: ‘BYD’s Corolla Cross challenger’

      30 January 2026
      Watts & Wheels S1E4: 'We drive an electric Uber'

      Watts & Wheels S1E2: ‘China attacks, BMW digs in, Toyota’s sublime supercar’

      23 January 2026

      TCS+ | Why cybersecurity is becoming a competitive advantage for SA businesses

      20 January 2026
    • Opinion
      A million reasons monopolies don't work - Duncan McLeod

      A million reasons monopolies don’t work

      10 February 2026
      The author, Business Leadership South Africa CEO Busi Mavuso

      Eskom unbundling U-turn threatens to undo hard-won electricity gains

      9 February 2026
      South Africa's skills advantage is being overlooked at home - Richard Firth

      South Africa’s skills advantage is being overlooked at home

      29 January 2026
      Why Elon Musk's Starlink is a 'hard no' for me - Songezo Zibi

      Why Elon Musk’s Starlink is a ‘hard no’ for me

      26 January 2026
      A million reasons monopolies don't work - Duncan McLeod

      South Africa’s new fibre broadband battle

      20 January 2026
    • Company Hubs
      • Africa Data Centres
      • AfriGIS
      • Altron Digital Business
      • Altron Document Solutions
      • Altron Group
      • Arctic Wolf
      • AvertITD
      • Braintree
      • CallMiner
      • CambriLearn
      • CYBER1 Solutions
      • Digicloud Africa
      • Digimune
      • Domains.co.za
      • ESET
      • Euphoria Telecom
      • Incredible Business
      • iONLINE
      • IQbusiness
      • Iris Network Systems
      • LSD Open
      • Mitel
      • NEC XON
      • Netstar
      • Network Platforms
      • Next DLP
      • Ovations
      • Paracon
      • Paratus
      • Q-KON
      • SevenC
      • SkyWire
      • Solid8 Technologies
      • Telit Cinterion
      • 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
      • Information security
      • Internet and connectivity
      • Internet of Things
      • Investment
      • IT services
      • Lifestyle
      • Motoring
      • Public sector
      • Retail and e-commerce
      • Satellite communications
      • Science
      • SMEs and start-ups
      • Social media
      • Talent and leadership
      • Telecoms
    • Events
    • Advertise
    TechCentralTechCentral
    Home » News » Vodacom, MTN raise red flags over amendment bill

    Vodacom, MTN raise red flags over amendment bill

    By Duncan McLeod26 November 2017
    Twitter LinkedIn Facebook WhatsApp Email Telegram Copy Link
    News Alerts
    WhatsApp
    Shameel Joosub

    Government has been criticised by South Africa’s two biggest telecommunications operators over the Electronic Communications Amendment Bill, which Vodacom and MTN say fails to deal with their urgent requirement for access to new spectrum.

    The amendment bill, approved by cabinet 10 days ago, does not address the telecoms industry’s “urgent need to access available spectrum”, Vodacom CEO Shameel Joosub said. Nor does it provide “certainty on licensing of current and future spectrum”.

    MTN South Africa CEO Godfrey Motsa said the risks associated with the bill are “extensive and significant”. The proposed legislation will discourage investment in the sector, he said.

    The two top industry executives’ remarks come after the amendment bill, which was approved by cabinet in mid-November, was blasted by the Free Market Foundation. The bill, if enacted, will make sweeping changes to the governance of the ICT sector in South Africa.

    Although Joosub said Vodacom is encouraged by the intent of the telecoms ministry in publishing the amendment bill, and welcomed “extensive discussions with the industry to find a workable solution, some current legal clauses of the bill do not give full effect to the practical outcomes of the engagement process”, Joosub said in an e-mailed response to questions from TechCentral.

    On the one hand, the bill is vague on how the Woan will operate. On the other, it is clear about what is required from industry

    Vodacom, he said, “fully supports the transformative objectives” of government’s national integrated ICT policy white paper — the precursor to legislation. This includes making broadband more accessible and affordable, he added.

    One of the most contentious aspects of the white paper is the proposal to create a wholesale open-access network from which other telecoms licensees will be expected to buy capacity. The Free Market Foundation has warned that this “Woan” will, in effect, create an infrastructure monopoly in South Africa.

    “On the one hand, the bill is vague on how the Woan will operate. On the other, it is clear about what is required from industry and that the Woan must be operational before spectrum may be made available to industry players,” Joosub said.

    He welcomed that the bill provides the legislative framework for the rapid deployment of telecoms infrastructure, which he said will allow for the “speedy deployment of national broadband infrastructure”.

    Motsa said MTN is “greatly concerned” about the amendment bill.

    “The risks associated with this bill are extensive and significant,” he said in remarks e-mailed to TechCentral on Sunday.

    “This bill will discourage investment in the sector. A slowdown in capital investment in our mobile networks will degrade the service and quality of the networks. This will have serious and unintended consequences, including the hindering of economic growth with a negative impact on job creation,” Motsa said.

    Godfrey Motsa

    He said the amendment bill fails to address the “single biggest issue facing the local telecoms industry, which is the serious ‘spectrum crunch'”.

    “The withholding of spectrum will result in mobile operators needing to scale back plans for continued growth into rural areas. Operators will have no option but to re-farm the spectrum and to further densify their networks at increased cost, to cope with the ever-growing urban demand for data. As a consequence of this, data costs will not be driven down, with the impact being worst felt by South Africa’s most economically marginalised communities.”

    Motsa urged government to adopt the “hybrid model” proposed by the big operators, which he said was produced following a year of “active collaboration between both the ministry and the industry”.

    “The new bill deviates substantially from that proposal. Mobile connectivity continues to be a powerful driver for social change. Together, government, policy makers and the industry must find a way to bridge the digital divide, helping deliver economic stability and inclusion for all.”

    No comment

    Cell C spokeswoman Karin Fourie said the operator has no formal comment yet on the amendment bill.

    Telkom spokesman Gugulethu Maqetuka said Telkom is still studying the implications of the bill. “We will comment fully on the implications of the proposed amendments once we have analysed them,” he said. “In our view, any amendments must address the current uncompetitive structure of the ICT sector, characterised by a duopoly. This duopoly is the result of past policy and regulatory interventions, which require redress.”

    Leon Louw

    Last week, the Free Market Foundation blasted the amendment bill, saying it “ignores months of behind-closed-doors negotiations” between the top-six mobile network operators and the government. It warned that government is effectively creating a new monopoly in the sector, threatening investment and upending an industry that has delivered communication services to most South Africans.

    Foundation executive director Leon Louw said three key issues of concern in the 2016 white paper remain in the amendment bill. There’s the plan to implement a “monopoly network” in the form of the Woan; a clause that requires mobile operators to return previously allocated spectrum “in which they have invested billions” of rand; and a requirement for mobile operators to provide access to their network infrastructure to competitors at cost-based pricing.  — © 2017 NewsCentral Media

    Follow TechCentral on Google News Add TechCentral as your preferred source on Google


    Cell C Free Market Foundation MTN Shameel Joosub Telkom Leon Louw top Vodacom
    WhatsApp YouTube
    Share. Facebook Twitter LinkedIn WhatsApp Telegram Email Copy Link
    Previous ArticleDA wants parliamentary probe into ANN7 deal
    Next Article Bitcoin nears $10 000 as crypto mania intensifies

    Related Posts

    Free Market Foundation slams treasury's proposed gambling tax

    Free Market Foundation slams treasury’s proposed gambling tax

    20 February 2026
    Blu Label takes R5.2-billion Cell C hit, touts clean slate ahead

    Blu Label takes R5.2-billion Cell C hit, touts clean slate ahead

    19 February 2026
    MTN to buy back its own towers in R35-billion deal - Ralph Mupita

    MTN to buy back its own cellular towers in R35-billion deal

    17 February 2026
    Company News
    Service is everyone's problem now - and that's exactly why the Atlassian Service Collection matters

    Service is everyone’s problem now – why the Atlassian Service Collection matters

    20 February 2026
    Customers have new expectations. Is your CX ready? 1Stream

    Customers have new expectations. Is your CX ready?

    19 February 2026
    South Africa's cybersecurity challenge is not a tool problem - Nicholas Applewhite, Trinexia South Africa

    South Africa’s cybersecurity challenge is not a tool problem

    19 February 2026
    Opinion
    A million reasons monopolies don't work - Duncan McLeod

    A million reasons monopolies don’t work

    10 February 2026
    The author, Business Leadership South Africa CEO Busi Mavuso

    Eskom unbundling U-turn threatens to undo hard-won electricity gains

    9 February 2026
    South Africa's skills advantage is being overlooked at home - Richard Firth

    South Africa’s skills advantage is being overlooked at home

    29 January 2026

    Subscribe to Updates

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

    Latest Posts
    MultiChoice scraps annual DStv price hikes for 2026 - David Mignot

    MultiChoice scraps annual DStv price hike

    20 February 2026
    What Gen Z really thinks about the tech world it inherited - Tinashe Mazodze

    What Gen Z really thinks about the tech world it inherited

    20 February 2026
    Showmax 'can't continue' in its current form

    Showmax ‘can’t continue’ in its current form

    20 February 2026
    Free Market Foundation slams treasury's proposed gambling tax

    Free Market Foundation slams treasury’s proposed gambling tax

    20 February 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}