Telkom has told Icasa that its black ownership rules for telecoms licensees go beyond what the law intends. The company said the uncertainty this created had “potentially deterred much-needed investment” in South Africa’s networks, TechCentral reported.
The criticism is in a submission Telkom made to an Icasa inquiry into new network licences. Telkom filed it in February and the regulator has published it on its website, according to TechCentral.
“The Equity Regulations introduce B-BBEE requirements that go beyond what is envisaged in the B-BBEE Act and the ICT sector codes,” Telkom said in the submission.
Telkom was referring to rules Icasa made in 2021. They require individual licensees to keep at least 30% ownership by historically disadvantaged groups for the life of a licence. Licensees must also hold at least a level 4 B-BBEE contributor status.
The 30% figure comes from the Electronic Communications Act. Icasa has suspended a separate 30% black ownership requirement in the regulations, TechCentral reported.
Telkom said the regulations set minimum equity requirements that the ICT sector codes do not contain. It said they “do not recognise other forms of ownership” or other ways of meeting B-BBEE goals.
The company said the result was “regulatory and policy uncertainty” that raised compliance costs and “in turn hinders competition in the market”.
Telkom said it was “in full support” of Icasa’s mandate to promote B-BBEE. It argued that these goals could also be reached through skills development, local supply chains, infrastructure investment and research funding.
Communications minister Solly Malatsi issued a policy direction in December 2025. It told Icasa to “urgently consider” aligning its ownership rules with the B-BBEE Act and the ICT sector code. Telkom cited the direction in its submission.
TechCentral reported that the reform is widely expected to open a path for Elon Musk’s Starlink. Starlink has refused to give up 30% of its local business.
Telkom said any satellite operator selling directly to South African customers must hold the same network, service and spectrum licences. It said “the same licence terms and conditions, including social obligations, applicable to current licensees should apply equally” to new entrants.
The submission named Starlink, Amazon Leo, Spacesail, Eutelsat OneWeb and Avanti Communications.
Telkom said treating new and old licensees differently would hurt companies that had spent heavily on compliance. It warned this “may ultimately result in the creation of a dual regulatory regime”.
The Association of Comms and Technology holds a similar position. It represents Telkom, Vodacom, MTN, Cell C, Rain and Liquid Intelligent Technologies. The association has backed equity-equivalent investment programmes while insisting on “regulatory parity” for any company using them.
The government is the biggest shareholder in Telkom. The company filed its submission before Icasa told the minister in May that it needed a change in the law to carry out his policy direction.
Telkom also argued that new network licences would not improve competition. It said their effect was likely to be “negligible”. Icasa took the opposite view in a discussion document on 30 October. The regulator provisionally concluded that would-be operators should be able to apply for licences directly.
Source: this article is based on reporting by TechCentral. Image: TechCentral. Written with the help of AI and published by the Tzaneen Voice Technology desk. See our Editorial Standards.
Werner Jacobs covers technology for Tzaneen Voice. Werner reports on mobile networks, data prices, internet access, smartphones, apps, AI, cybersecurity and South African tech companies. Each story explains what a new product, price change or policy means for ordinary users in South Africa.