[23 February 2025]
The Portfolio Committee for Communications and Digital Technologies received an update from ICASA on its cost to communicate programme and other relevant matters on February 11, 2025.
[15 March 2019]
To learn more about ICASA’s progress in lowering communication costs, you can view their latest presentation:
Here’s a breakdown of ICASA’s key efforts to make communication more affordable in South Africa:
1. Lower Call Termination Rates:
- A new system reducing call termination rates (the fee one network charges another to connect calls) went into effect in October 2018.
- This significantly lowered call prices, particularly for mobile calls to Vodacom and MTN (dropping from R1.25 to R0.12 per minute excluding VAT between 2006 and 2018).
- While effective, further reductions in termination rates may have limited impact at this point.
2. Regulation of Out-of-Bundle Charges:
- Amendments to subscriber service regulations were finalized in 2019.
- This aims to curb excessive out-of-bundle charges levied by mobile networks, offering consumers more protection.
3. Identifying Priority Markets:
- ICASA completed a market prioritization process in 2017.
- This identified three specific markets where further investigation into competition is needed. This sends a signal to the industry that ICASA is looking closely at these areas.
4. Collaboration on Broadband Market Review:
- ICASA, along with the Competition Commission, is reviewing competition in both wholesale and retail broadband markets.
- They are working together to ensure their investigations are coordinated and effective.
[3 December 2018]
ICASA unveiled its cost-to-communicate program on November 26, 2018.
[8 April 2018]
The NCOP’s Select Committee on Communications held a stakeholder meeting on reducing communication costs on March 27th, 2018. Presentations were given by ICASA and mobile network operators Telkom, MTN, and Cell C.
[16 August 2017]
ICASA presented details of its ‘Cost to Communicate’ program to the Select Committee on Communications and Public Enterprises on August 2nd, 2017.
ICASA Presentation Cost to Communicate 2 August 2017
[12 February 2014]
At a meeting on February 11th, 2014, ICASA updated the Portfolio Committee on Communications on their Cost to Communicate program. The discussion centered on call termination rates and the recently published Call Termination Regulations 2014.
Department of Communications Presentation Cost to Communicate 07 Feb 2014 final
[17 July 2013]
Due to extensions granted by ICASA, the submission deadlines for the Broadband Value Chain Study and Call Termination Market Review questionnaires have been revised. Please refer to the updated timelines in the following tables.
[17 June 2013]
In a move towards more affordable communication services, ICASA launched a ‘Cost to Communicate Programme’ on June 4th, 2013. This two-year initiative aims to ensure electronic communications licensees offer fair and reasonable prices for their products and services.
ICASA intention to implement cost to communicate programme
The Independent Communications Authority of South Africa (ICASA) has launched the Cost to Communicate Programme, a multi-pronged initiative aimed at lowering communication costs in South Africa. This program serves as a formal announcement of ICASA’s commitment to five key projects with a June 2015 deadline:
- Broadband Value Chain Analysis: Examining the various stages involved in delivering broadband services to identify potential bottlenecks driving up costs.
- Call Termination Market Review: Assessing the market for call termination services, which can significantly impact overall communication costs.
- Local Loop Unbundling (LLU): Investigating ways to allow multiple service providers access to the “last mile” of copper wires connecting homes and businesses, potentially fostering competition.
- ICT Indicators: Establishing a system to regularly collect and analyze data on the Information and Communication Technology (ICT) sector, providing insights into cost trends.
- Digital Terrestrial Television (DTT) Review: Finalizing the review of wholesale transmission services for DTT, which could make it more affordable to deliver television content.
Beyond Projects: Promoting Competition and Transparency
ICASA’s focus extends beyond these specific projects. They also aim to:
- Stimulate Public Discussion: Encourage open dialogue about the high cost of communication in South Africa.
- Identify Regulatory Needs: Determine the appropriate regulatory measures to address affordability concerns.
- Increase Competition: Foster a more competitive telecommunications sector, which is expected to lead to:
- Greater Consumer Choice: More options for service providers and plans.
- Enhanced Switching: Easier transition between providers.
- Clearer Pricing: Improved transparency in pricing structures.
- Fairer Costs: More reasonable wholesale and retail prices.
Evidence of High Costs:
The program is grounded in evidence from the World Economic Forum, Research ICT Africa, and other sources. These reports highlight the high cost of mobile tariffs in South Africa compared to regional, continental, and global benchmarks. By addressing these concerns, ICASA hopes to make communication more accessible and affordable for all South Africans.
Broadband Value Chain Analysis
The Independent Communications Authority of South Africa (ICASA) is initiating a comprehensive review of the electronic communications market. This review will assess all relevant facilities and services to identify potential instances of:
- Ineffective competition: This refers to situations where competition exists but is not strong enough to deliver significant benefits to consumers, such as lower prices or improved service quality.
- Market failure: This occurs when the market, on its own, cannot allocate resources efficiently, leading to negative consequences for consumers.
ICASA aims to leverage this review to identify potential areas where pro-competitive interventions might be necessary under the Electronic Communications Act. These interventions could involve regulatory measures designed to foster a more competitive and efficient market.
The review is expected to be completed within nine months, with a target completion date of March 2014.
Project Timelines & Implementation Period
- Request For Information 14 June 2013 -29 July 2013
- Release Discussion Document public comment 19 August 2013
- Public Hearing 5 September 2013
- Publish Findings Document 1 November 2013
- Release Draft Regulations for public comment 10 December 20
- Publish Final Regulations 14 April 2014
Call Termination Market Review
The Independent Communications Authority of South Africa (ICASA) plans to review the Call Termination Regulations of 2010. These regulations established a gradual reduction in mobile and fixed termination rates (charges for connecting calls between networks) and imposed additional requirements on Telkom, Vodacom, and MTN to promote competition.
ICASA believes that even after these reductions, termination rates are still hindering healthy competition and contributing to high retail phone costs in South Africa.
The review will focus solely on the existing pro-competitive obligations imposed on the major operators. It will not revisit the original market definitions or designations of Significant Market Power (SMP) as these remain unchanged.
Project Timelines & Implementation Period
- Request For Information 10 June 2013
- One-on-one engagement with Licensees 1 to 12 July 2013
- Receipt of written responses from licensees 2 August 2013
- Publication of discussion document 9 August 2013
- Public Hearings 2-3 September 2013
- Publish Final Call Termination Regulations 25 October 2013
Local Loop Unbundling
Local loop unbundling (LLU) has been a topic of discussion for over five years. ICASA is currently clarifying its position on the matter. However, they are postponing finalizing the LLU regulations until a dispute between Neotel and Telkom is resolved.
Neotel requested access to specific parts of Telkom’s copper network under the Facilities Leasing Regulations of 2010. When Telkom denied this request, the matter went to the Complaints and Compliance Committee, which ruled in favor of Neotel. However, Telkom is currently appealing this decision.
In the meantime, ICASA plans to release draft LLU regulations for public comment. These draft regulations will outline how the copper local loop will be unbundled in South Africa. However, finalizing these regulations will be contingent on the outcome of the Neotel-Telkom dispute review.
ICT Indicators
The Independent Communications Authority of South Africa (ICASA) has announced plans to tackle the information gap between itself and the communications industry. This initiative aims to:
- Enhance Policy and Regulation: By acquiring better data, ICASA can develop more informed policies and regulations.
- Benchmark Performance: The collected information will be used to compare South Africa’s communication costs and quality to other countries. This data will also be submitted to the ITU (International Telecommunication Union).
- Tailored Information Requests: ICASA will clearly explain what information is needed and why, specific to each situation. They may also request additional information relevant to ongoing initiatives.
The notice outlines the legal basis for ICASA’s information requests and the process for requesting confidentiality of submitted data.
Data Collection Methods
- Online Questionnaires: Primarily, information will be collected through online questionnaires.
- One-on-One Interviews: In some cases, ICASA may conduct individual interviews.
The collected information will be available on ICASA’s developing online ICT Indicators portal (launched in March 2013). This allows for transparency and public access to the data – http://ictindicatorportal.icasa.org.za/Portal/index.php?p=24 (No longer functioning) .
Digital Terrestrial Television (DTT) Rate Card – Broadcasting Wholesale Transmission Services
Following complaints from a free-to-air broadcaster and several community radio stations, ICASA (Independent Communications Authority of South Africa) launched an inquiry into Sentech Limited’s wholesale broadcasting transmission services. The inquiry focused on allegations of high prices and poor service quality.
On June 7th, 2013, ICASA published a Findings Paper outlining their investigation results. They will now draft and publish regulations for comment. These regulations aim to establish fair competition practices specifically for companies identified as having significant market power within the industry.