Overview
- Communications Minister Solly Malatsi gazetted a final policy direction, signed 11 December and published 12 December, instructing ICASA to urgently align with the national ICT Sector Code.
- The move compels recognition of Equity Equivalent Investment Programmes as alternatives to the 30% historically disadvantaged ownership requirement previously enforced in telecom licensing.
- Approval of equity-equivalent deals resides with the Department of Trade, Industry and Competition, prompting concerns that practical gatekeeping shifts from the independent regulator to the executive.
- The department says it received over 19,000 submissions on the draft policy with roughly 90% support for the change, citing regulatory clarity and potential to expand high-speed access.
- Starlink, which maintains 100% ownership of its subsidiaries, may now apply by proposing an approved equity-equivalent plan, with reports pointing to a potential investment exceeding R2 billion and connectivity commitments for schools.