Amendments to the 20-year old framework prioritise ensuring the efficient use of spectrum while promoting growth in the nascent MVNO market
The bill seeks to promote competition as well as broaden ICASA’s oversight of the telecoms sector
On 20 April 2026, South Africa’s Minister of Communications and Digital Technologies published a draft bill to amend the Electronic Communications Act 2005. The aim of the proposed amendments, according to a Cabinet statement, is to “increase the level of competition” in the country’s telecoms sector and “drive down prices”, as well as to encourage investment by lowering barriers to entry for smaller operators. The regulator, the Independent Communications Authority of South Africa (ICASA), would be granted expanded authority to oversee the revised act’s implementation, with its mandate including the regulation of wholesale pricing, quality of service, access conditions and dispute resolution.
The amendments propose to introduce a “use it or share it” policy for spectrum licences
The proposed changes to the legislation aim to prevent spectrum hoarding by empowering ICASA to reassign or force the sharing of licensed spectrum that remains unused for over two years. This policy specifically targets mobile operators with national coverage of over 90%, such as Vodacom and MTN. ICASA would be able to require the primary licensee to share unused spectrum with a secondary operator. To promote broader access, the bill would direct ICASA to prioritise community networks and small, medium and micro enterprises (SMMEs) when awarding secondary licences, the beneficiaries of which would be exempt from spectrum licence fees for an initial twelve months. If ICASA is unable to successfully grant a secondary licence, it would have the authority to withdraw the spectrum from the primary licensee entirely, reflecting the stricter “use it or lose it” principle. The bill notes a similar regulatory approach in the UK, where local access licences permit other users to access spectrum licensed to mobile operators in areas where it is not actively being used.
Major mobile operators would be required to support the underdeveloped MVNO market
The bill also seeks to stimulate the growth of smaller operators by requiring large mobile operators that exceed 90% national coverage – to be defined as “access providers” – to offer access for both national roaming and MVNOs, concluding agreements within a 60-day window. The bill acknowledges that MVNOs are underdeveloped in South Africa, largely because major networks lack the incentive to provide them access. The new requirement would enable smaller operators to offer nationwide coverage without the costly investment in developing their own infrastructure. The bill states that this would allow consumers to experience the “material benefits” of MVNOs, including choice, quality and lower or more innovative pricing.
ICASA should determine fair and reasonable wholesale access pricing
Other measures intended to promote the growth of smaller operators include the requirement for municipalities to share properties and infrastructure (such as electricity poles, high sites and ducts) with network service licensees upon request. This is designed to remove barriers to the rapid deployment of telecoms networks, including inconsistent land access procedures, excessive costs for wayleaves and limited access to municipal resources, thereby enabling the more efficient and cost-effective delivery of services to end users. Further, the amendments would require ICASA to establish wholesale pricing rules or standards for essential facilities, roaming and MVNOs, which must be fair and reasonable, and cost-oriented or “reflect the benefits of sharing costs amongst users sharing the facilities”. These principles are intended to ensure competitive and fair access pricing, allowing a wider variety of operators, beyond just traditional licensees, to provide different types of services.
