Review of Universal Service and Access Obligation (USAO) framework

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[14 October 2025]

Draft Amendment to Telkom USAOs 10 October 2025

The communications regulator, ICASA, is starting a process to modernize the Universal Service and Access Obligations (USAOs) that were imposed on Telkom back in 1997 when it got its license.

Many of these original obligations are now obsolete—you don’t see many public payphones anymore, for instance. ICASA is considering replacing these outdated requirements with new ones focused on providing internet and communication services to Thusong Service Centres (multi-purpose hubs for government services).

Want to have your say?

  • Action: Submit written comments.
  • Deadline: 4:00 PM on November 21, 2025.
  • Send To: Keitumetse Setshedi via email at usoproject2016@icasa.org.za. (Enquiries: 012-568-3709)

Telkom will be allowed to respond to all submitted comments before ICASA finalizes the new set of obligations.

[3 April 2022]

South Africa’s Independent Communications Authority (ICASA) has finalized new obligations for Sentech SOC Ltd.

Sentech USAOs March 2022

[13 February 2022]

The Independent Communications Authority of South Africa (ICASA) has approved modifications to the obligations Rain Networks must fulfill to provide universal service and access (USAOs). These changes are a result of Rain Networks being awarded access to the highly sought-after 1800MHz spectrum for mobile data services.

USAO Licence Obligations for Rain Networks

The regulator is considering similar adjustments to Sentech’s requirements:

Draft Amendment USAO Licence Obligations for Sentech SOC Limited

[2 April 2020]

The deadline for public comments on the proposed changes to Rain Networks’ universal service and access obligations has been extended. People now have until April 24, 2020 to submit their comments (previously April 2nd). Rain Networks will also have more time to respond, with a new deadline of June 26, 2020 (previously April 12th).

ICASA Media Release

[15 March 2020]

The Independent Communications Authority of South Africa (ICASA) is inviting public comment on proposed changes to the universal service and access obligations for Rain Networks.

Deadline for submissions is April 2, 2020 at 4:00 pm SAST. Submissions should be sent to usoproject2016@icasa.org.za, addressed to Mr. Moyeni Nkosinkulu.

Draft Amendment to Rain Networks USAOs 13 March 2020

[27 February 2018]

Telkom applied to ICASA on November 16th, 2017, to change their Universal Service and Access Obligations (USAOs). ICASA, the government agency overseeing communications, is reviewing these obligations for all licensees, having begun the process in 2008/2009. Their aim is to update the USAOs to reflect changes in the communications market.

The public is invited to comment on Telkom’s application.

Telkom Amendments of USAOs Feb 2018

Public Comment on Telkom’s USAO Application:

  • Deadline: Submit written comments by March 23rd, 2018, to Moyeni Nkosinkulu (USAO Project Leader) at usoproject2016@icasa.org.za.
  • Telkom’s Response: Telkom has the right to respond to any written comments submitted regarding their application.
  • The Issue: Telkom argues that ICASA amended the Universal Service and Access Obligations (USAOs) for MTN, Vodacom, and Cell C in 2014, but did not make similar changes to Telkom’s licenses.

[20 February 2017]

ICASA, the Independent Communications Authority of South Africa, is seeking comments on amendments to the Universal Service and Access Obligations (USAOs) requested by Sentech, WBS, and Telkom. These USAOs are part of the licenses granted to these companies by ICASA.

The deadline for your input is February 24th, 2017. You can send written comments to Moyeni Nkosinkulu (USO Project Leader) at usoproject2016@icasa.org.za or call us at 011 566 3976 (for enquiries).

Original obligation Amended obligation
Sentech
To roll out internet access at the e-rate to 1,500 rural public schools To provide connectivity to all TVET campuses allocated by ICASA
WBS
To provide internet access to no less than 1,000 rural and urban public schools To provide connectivity to 62 TVET campuses allocated by ICASA
Telkom
Rollout of 120 000 public payphones Rollout and maintenance of 25 000 public payphones

[29 December 2015]

The South African communications regulator, ICASA, is seeking input on how to improve universal service in the country. They’re reviewing the rules for phone and internet companies (ECS and ECNS licensees) set out in the Electronic Communications Act of 2005.

After gathering initial feedback in August 2015, RIA – USO Phase II Informal Questions Aug 2015, ICASA has now outlined the issues they’re considering and possible solutions. Let them know your thoughts by January 20th, 2016.

General Notice – Regulatory Impact Assessment – USO Phase II 20 Dec 2015

The problem statement reads as follows:

The South African ECS/ECNS market has total of 771 licensees and counting. Of these licensees in the market only 1% have universal service and access obligation with the objective closing the ICT gaps within the communities.

The Definition Of Under-Served Areas Regulations as published shows a list of District Municipalities in the country for availability and accessibility of internet, computers, telephones and cell phones. The first 200 districts in the list have a combined average of internet, computers, telephone and cell phone at penetration rates of less than 30%, the lowest district has 12.7% average. The lowest internet access and availability in a district is 0.0% and highest is 12.5%. Access to computers is lowest at 0.3% and the average for all districts is 15.6%. Contrary to common perception the average for the districts with regards to access and availability of mobile phone services is 72.7%.

It is clear from the above that there are gaps within our communities with regard to availability and accessibility to ICT’s. The South African market has licensees providing services at district and national levels. Their services range from wireless and fixed internet access to voice services. Entities providing these services are mostly WISP, however due to their size most WISP have limited network infrastructure and rely heavily on established entities for backhaul fibre and access to international fibre. WISP often provide their own last mile connectivity to the customer premises which is mostly wireless, however they make use of the ISM band spectrum.

Uptake of services must be considered when issues of universal service and access obligation are being resolved. Currently 5250 public schools have been targeted for roll-out of access to internet services. This forms approx. 22% of all public schools within the country. There is a need for the remaining schools be provided with access including other government service departments that are located within the of communities’ e.g. police stations, community halls, community clinics and fire stations. If these are targeted for initial uptake it might make it easier for surrounding communities’ to accesses these services.

There is need for backhaul fibre to be made accessible and to be in close proximity for WISP and other players to pick-up in order to install base stations/wireless access points. Whilst some backhaul fibre is made available on a commercial basis there is limited access or no access in under-served areas. However, there is considerable backhaul fibre in the country but it serves mainly towns and cities, this needs to be extended to under-served areas. 

[7 June 2014]

ICASA completed its review by publishing revised universal service requirements on June 4, 2014. These requirements took effect on April 1, 2014.

[12 January 2014]

The deadline to submit was extended to January 21st, 2014, as announced in a government gazette on December 20th, 2013.

[update 28 November 2013]

To move the process forward (or in an attempt to move it forward), ICASA published a “Draft Amendment on USAO” for public comment. The deadline for feedback is December 19th, 2013.

According to the accompanying press release:

“ICASA has published the Draft Amendment of the Universal Service and Access Obligations (USAO) of the main network operators for the purposes of ensuring compliance within a specified time period. In terms of the proposed amendment, licensees will be required to provide internet access as well as computers, servers, printers and other local area network related equipment as stated in the ICT Solution provided by the Department of Basic Education (DBE) for school connectivity purposes.

The amendment further proposes the removal of the sim-card and handset distribution obligations as well as the reduction in the number of schools to be connected by each licensee.

The Authority commenced with the review of Universal Service Access Obligations in 2008/2009 where an external consultant was appointed and tasked with international benchmarking exercise, and to also take into account adopted approaches in implementing USAO.

In 2010, the Authority published a draft findings document in which it was found that the Community Service Telephones (CSTs) were the only obligation that was fully completed, whereas the sim card and handset obligations were not fully completed. The Authority conducted public hearings in 2011 based on the draft findings document. Subsequently, the Authority undertook a review process of all imposed obligations based on the findings of 2010 and found that sim-card and handset distribution obligations were no longer relevant. In September last year, the Authority published Final Findings Document where it was recommended that licensees implement Internet Access “schools Connectivity” obligations and to review sim-card, handset and public payphones obligations.”

[update 16 September 2012]

The final findings of the Universal Service and Access Obligations review, published on September 10, 2012, offer valuable insights.

Findings Universal Service and Access Obligations Review (GG35674)

This document outlines how ICASA plans to address Universal Service and Access Obligations (USAOs). However, a key challenge is that not all licensees have USAOs, and even for those that do, compliance has been poor.

Here’s a summarized version of ICASA’s recommendations:

  • Existing obligations remain: Telecommunications Act obligations are still in effect until ICASA reviews them. Licensees must continue providing those services.
  • Renegotiate unimplemented obligations: Licensees who haven’t fulfilled existing Universal Service and Access Obligations (USAOs) will need to discuss them with ICASA for a new agreement.
  • Fair obligations based on factors: Licensees within the same category won’t necessarily have the same obligations. ICASA will consider factors like market presence, size, and revenue when assigning obligations.
  • Universal Service Access Fund (USAF) contributions: All licensees should contribute to the USAF, which funds communication services in underserved areas. Broadcasters who don’t contribute shouldn’t benefit from the fund.
  • “Pay and Play” Model: The USAF can be used by any Electronic Communications Network Service (ECNS) provider to meet the needs of underserved areas, as determined by ICASA.
  • Beyond Market Gap Studies: ICASA won’t solely rely on market gap studies. They can investigate community needs directly and address access to new technologies like 4G, even if there’s no market gap study.
  • Focus on consumer benefit: If a service benefits consumers, ICASA may not see a need to review related obligations.

[2010]

South Africa is rethinking its approach to bringing communication services to everyone (Universal Access and Universal Service). ICASA, the industry regulator, has launched a review to see if the current system is working.

Right now, companies that get licenses to provide communication services (licensees) have obligations to help achieve Universal Access and Service (USAOs). These obligations might involve things like extending service to underserved areas. ICASA is considering a new approach where companies would compete for funding from a special fund (Universal Service and Access Fund) to fulfill these obligations.

Another question is what to do about the obligations placed on existing big communication companies (incumbent operators). A report shows they haven’t met many of their obligations, and they blame ICASA and another agency for not being clear enough about what’s expected.

While the full details are available on the ICASA website, this review signals a potential shift in how South Africa ensures everyone has access to communication services.

USAO Compliance Review Report

Public hearings were held on 8 and 9 December 2010 – USAO Review Hearings Schedule

The following written submissions were made to ICASA:

The report was based on answers received to the following questionnaire:

ICASA Concluding Questionnaire