The authorized and institutional framework underpinning South Africa’s common service obligations in telecommunications is now not match for objective, trade leaders have warned.
The levy paid by licence holders more and more resembles a normal tax fairly than a ring-fenced contribution to closing the nation’s connectivity gaps, they mentioned.
Telecoms licensees pay 0.2% of their licensed income into the Common Service and Entry Fund, administered by the Common Service and Entry Company of South Africa (Usaasa).
However in accordance with Web Service Suppliers’ Affiliation (Ispa) regulatory advisor Dominic Cull, the money doesn’t circulation on to the fund. It’s collected by Icasa, transferred to nationwide treasury and a solely portion of it’s allotted by way of the funds course of – breaking the hyperlink between what licensees contribute and what’s obtainable for common service tasks.
“That’s one thing which must be checked out as a result of it turns into extra of a normal tax and never a particular contribution for a particular objective,” Cull mentioned in an interview with TechCentral on Thursday.
Usaasa has an extended historical past:
- It was initially based because the Common Service Company beneath part 58 of the Telecommunications Act of 1996.
- It was reconstituted in its present kind beneath sections 80 to 91 of the Digital Communications Act of 2005, which got here into operation in July 2006.
- It’s mandated to advertise common service and entry in underserviced areas, advise authorities and Icasa on entry coverage, and administer the Common Service and Entry Fund, into which licensees contribute to subsidise the roll-out of networks in underserved communities.
In accordance with the division of communications & digital applied sciences’ funds vote for the 2025/2026 monetary yr, Usaasa was allotted R268-million for its operations, whereas the Common Service and Entry Fund obtained R173-million “to advance digital inclusion initiatives in unconnected areas”.
Cull mentioned the structural points have been compounded by efficiency failures at Usaasa, with core duties such because the definitions of “common service” and “needy individuals” – which Usaasa is supposed to develop in collaboration with the communications minister – nonetheless non-existent.
“There was dysfunction that has resulted in actual hurt to South Africa’s aim of connecting underserved communities,” he mentioned.
‘Uneven supply’
Nomvuyiso Batyi, CEO of telecoms foyer group the Affiliation of Comms & Expertise (ACT), mentioned the company’s mandate beneath the Digital Communications Act – to increase broadband entry and assist common service goals – stays compelling, however that supply has been uneven and constrained by institutional uncertainty, capability limits and ongoing restructuring.
Audit outcomes have improved from a “disclaimer” to “certified” and, extra lately, an unqualified opinion, however Batyi cautioned that this displays strengthening governance compliance fairly than sustained, large-scale developmental affect.
Learn: Warning that South Africa’s digital competitiveness is in retreat
Operationally, Usaasa is delivering – by way of focused broadband roll-out, public Wi-Fi deployments and digital abilities programmes – however the scale and tempo stay modest relative to South Africa’s connectivity gaps, she mentioned.
Batyi drew an unfavourable comparability with established worldwide common service and broadband supply frameworks, together with the US Federal Communications Fee’s Common Service Fund and the UK’s Constructing Digital UK programme.
South Africa’s present mannequin, she mentioned, displays weaker institutional continuity, fragmented execution and restricted alignment between funding, outputs and measurable outcomes. Reporting tends to give attention to actions and processes fairly than on tangible developmental outcomes akin to precise utilization, service reliability, affordability and the sustainability of deployed infrastructure.
The division of communications has acknowledged the underperformance and intends to include Usaasa beneath a brand new Digital Growth Problem Fund (DDCF), with a invoice anticipated to be tabled for public remark later this yr, in accordance with Cull.
A brand new broadband connectivity report launched by the Growth Financial institution of Southern Africa final month famous that greater than 98% of South Africans have entry to 4G protection, however precise utilization lags considerably. Cull mentioned this means a rethink of how Usaasa funds are allotted, with a tool and information subsidy for indigent South Africans among the many choices into account.
What is required, he mentioned, is substantial reform of the institutional and authorized framework round common service and entry – together with up to date definitions, correct protection mapping by Icasa and use of the powers already conferred by the Digital Communications Act to construct a workable framework.
‘Evolving’
Usaasa communications specialist Keitumetse Maloka mentioned the company is “evolving its strategy” based mostly on a “reform-orientated” technique, with the lacking definitions Cull referred to among the many key deliverables in Usaasa’s efficiency plan for the 2027 monetary yr. As an implementing company, Usaasa doesn’t pronounce on policy-level selections such because the transfer to subsume it into the proposed DDCF, she mentioned.
Learn: The staggering value of connecting each South African family
“Nevertheless, the company stands able to assist the policymaking course of by way of evidence-based suggestions, ought to or not it’s referred to as upon to take action. Such modifications would essentially require amendments to the governing laws,” mentioned Maloka. – (c) 2026 NewsCentral Media
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