The Independent Communications Authority of South Africa (ICASA) has proposed a major change to the way companies obtain individual electronic communications network service (I-ECNS) licences, arguing that the current system has not delivered the competition it was intended to support.
The proposal is set out in a discussion document for Phase Two of ICASA’s inquiry into the individual electronic communications network service licensing framework. Published under General Notice 4234 in Government Gazette 55654 on 30 October 2026, and announced on 2 November, the document invites industry representations on possible changes to the licensing process.
ICASA’s preliminary assessment is that the existing route into the market has created barriers for prospective operators. Under the current framework, an applicant seeking to enter the market generally has to acquire a licence from an existing holder and then obtain regulatory approval for the transfer. The authority says this approach has not worked effectively in promoting competition.
It is therefore considering allowing eligible applicants to apply directly to ICASA for an I-ECNS licence, rather than having to secure one through an existing licensee. The regulator has issued 470 such licences, but says most are inactive or dormant. It also approves only about 11 ownership or control transfers annually, raising questions about how effectively the existing licences are being used and circulated within the market.
The discussion document also considers measures to address licence hoarding. One option is a “use it or lose it” condition, which could require licence holders to demonstrate that they are actively using their authorisations. ICASA is also considering publishing guidelines to clarify the process for transfers of ownership or control.
Industry submissions already received by the regulator indicate differing positions. Satellite operators have called for more licences to be made available, while South Africa’s two largest mobile network operators have questioned whether the proposed changes would deliver meaningful benefits. One operator has reportedly put the cost of acquiring a licence pair at more than R1 million, illustrating the financial barrier that prospective entrants may face under the existing system.
Direct access to the licensing process would not remove other regulatory obligations. Applicants would still be required to comply with ownership and empowerment requirements, meaning the proposed changes concern the route to obtaining a licence rather than an exemption from the broader licensing framework.
Written representations on the discussion document are due within 45 working days of publication, placing the deadline in early January 2027. The consultation will give network operators, satellite providers, prospective entrants and other industry stakeholders an opportunity to respond before ICASA determines its next steps.
For South Africa’s connectivity and broadcast distribution sectors, the outcome could affect how new network infrastructure providers enter the market, including businesses supporting broadband access, transmission and other electronic communications services. However, the proposals remain under consultation and do not yet change the licensing framework.
