ISPA, South Africa’s official internet industry representative body, has welcomed Mothibi Ramusi, the new Chairperson of the Independent Communications Authority of South Africa (ICASA), to his role and has urged him to prioritize easing the regulatory burden on SMME licensees in the electronic communications industry.
Review license distinctions
ISPA believes that ICASA should review the current reporting requirements, fines, and fees under existing regulations to differentiate between emerging licensees and larger incumbent operators.
ISPA Chair, Sasha Booth-Beharilal, “It seems wrong that an emerging ISP has largely the same compliance obligations as Telkom or Vodacom.”
ISPA is a 235-member Industry Representative Body (IRB) comprised of both Electronic Communications Service (ECS) and Electronic Communications Network Services (ECNS) licensees.
“ISPA has enjoyed a long-term, mutually beneficial relationship with ICASA centred on the joint desire to ensure high-quality, affordable connectivity for all South Africans.
“ISPA is advocating for a simplified approach for emerging businesses that ensures adequate consumer protection while aligning with fairness, proportionality and maintaining a competitive connectivity market.” notes Booth-Beharilal
Study’s revelations
A 2023 Competition Commission study on Measuring Concentration and Participation in the South African Economy: Levels and Trends revealed that the contribution of SMEs to the country’s total income is comparatively low and declining. Cumbersome regulatory requirements consume considerable time for SME business owners and their employees, diverting focus from core operations.
Currently, all telecom licensees must submit multiple returns under the existing regulatory framework, regardless of their size. These standardized filing obligations disproportionately burden small licensees due to limited resources and administrative capacity.
Internationally, many regulators acknowledge the diversity among the businesses they oversee, often using subscriber numbers as a criterion for assessment. A trend towards risk-based regulatory approaches is emerging, where the scale of licensee operations dictates simplified and less frequent data submission requirements for small operators.
For instance, in the United States, government agencies like the Federal Communications Commission (FCC) are mandated to assess the impact of proposed regulations on small entities and explore alternatives to mitigate negative economic effects. Similarly, the South African government recognizes SMEs’ economic significance and publicly supports reducing compliance burdens for them.
Small players crucial
Furthermore, small operators play a crucial role in delivering telecom services to underserved areas that larger operators may overlook, often offering competitive pricing and personalized services tailored to local needs.
ISPA proposes a tiered approach to administrative filings, fines, and license applications that differentiates between small and large operators. For small licensees, this would involve a streamlined reporting framework with reduced data granularity, revised penalties based on turnover percentages, and a two-tiered fee structure.
Available for discussions with ICASA and Government
“ISPA is always open to constructive engagement with ICASA specifically and government generally to develop a framework that ensures compliance while reducing the administrative burden on small businesses.” concludes Booth-Beharilal
Established in 1996, ISPA is the sole Internet Industry Representative Body (IRB) officially recognized by the Department of Communications and Digital Technologies (DCDT). ISPA advocates for an open, free, and competitive internet environment.
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