SA: ICASA Strengthens Mobile Market Regulations with New Amendment Act

The Independent Communications Authority of South Africa (ICASA) has introduced the Mobile Broadband Services Amendment Regulations 2024, which will come into effect upon publication in the Government Gazette. These new regulations mark a significant shift in the regulatory framework governing mobile market power.

Initially established on March 31, 2022, the original regulations mandated that mobile operators with Significant Market Power (SMP) publish detailed reports on retail prices, data revenue, retail tariffs, and wholesale prices for Mobile Virtual Network Operators (MVNOs) and Access Point Names (APNs) on their websites, regardless of confidentiality concerns.

Under the new amendment, this requirement has been revised. Mobile operators with SMP will no longer be obligated to disclose confidential information on their websites. Instead, they will be required to publicly share non-confidential reports and submit confidential information to ICASA on a quarterly basis.

While major operators like MTN, Telkom, Vodacom, and the Internet Service Providers’ Association (ISPA) supported the removal of this requirement, Cell C was opposed to the change. Despite differing opinions, ICASA has decided to move forward with the amendment, stating, “The Authority reaffirms its decision to remove regulation 7(e), as it did not identify any licensee with significant market power in the APN and MVNO service markets.”

In addition to the removal of regulation 7(e), the new amendments also propose the elimination of clauses 7(f) and 7(g), which pertained to regulating wholesale prices for MVNOs and APNs.

Key Changes in the Amendments Include:

• Removal of Confidential Reporting Requirement: Operators with SMP will no longer need to publish confidential information online. They must now only disclose non-confidential information publicly and provide confidential reports to ICASA on a quarterly basis.
• Elimination of Clauses 7(f) and 7(g): These clauses, which regulated wholesale prices to MVNOs and APNs, are being removed. Specifically:
  • Clause 7(f): Previously required operators to explain any retail price that was lower than wholesale prices and provide fully auditable evidence to ICASA.
  • Clause 7(g): Pertained to the regulation of wholesale prices to MVNOs and APNs, which will no longer be enforced.

ICASA’s decision to amend these regulations reflects a recalibration of its approach to managing market power in the mobile sector, focusing on the practicality of enforcement and the needs of the market.

ICASA concluded, “These regulatory updates are intended to create a more effective and manageable framework for overseeing market practices, ensuring that regulations remain relevant and effective in a rapidly evolving industry.”

Through these amendments, ICASA aims to refine its regulatory practices while balancing market oversight with the operational realities of mobile network operators.