South Africa's telecommunications licensing framework is facing pressure from an established network operator that wants regulators to recognise alternative ways of meeting Black economic empowerment requirements.
Telkom has challenged the country's telecom ownership rules, arguing that the current approach places too much emphasis on direct equity participation while overlooking other mechanisms recognised under the ICT Sector Codes.
The dispute has implications for how telecommunications companies attract investment, structure partnerships and expand network infrastructure. It also affects the conditions under which international satellite operators such as Starlink can enter the South African market.
In a submission to the Independent Communications Authority of South Africa (ICASA), Telkom questioned whether the Equity Regulations adequately reflect the broader empowerment framework established under the Broad-Based Black Economic Empowerment Act and the ICT Sector Codes.
The operator said the regulations introduce requirements beyond those contemplated in the existing empowerment framework. It also argued that they fail to recognise alternative ownership structures and other forms of compliance with transformation objectives.
Telkom maintains that the regulatory approach has created uncertainty for licence holders, increasing compliance costs and potentially discouraging investment in electronic communications networks.
