ICASA Inquiry Targets South African Telecom Licensing
As reported by MyBroadband, the licensing setup for South African telecommunications has fostered a man-made secondary marketplace where infrastructure and service permits trade for R1 million.
ICASA launched the inquiry following a policy directive from communications minister Solly Malatsi. The regulator wants to determine whether it should issue new national network operator and service licences.
Operators who wish to build and run physical network infrastructure at a national scale must hold an Individual Electronic Communications Network Service licence.
Companies like Internet service providers that sell services over a national network require an Individual Electronic Communications Service licence. Individual licences allow holders to operate nationally, while Class licences stipulate a specific region of operation. ICASA has not issued new licences in 16 years, MyBroadband reported.
Secondary Market Costs Exceed R1 Million
While ICASA holds the mandate to launch an Invitation to Apply for new service licences, a ministerial policy direction remains required for new infrastructure licences. The Internet Service Providers’ Association of South Africa argued that the minister and ICASA should issue a standing Invitation to Apply for both licence types. This would allow anyone needing a licence to lodge the necessary paperwork with ICASA at any time.
Currently, the only way to obtain a licence is to apply for a transfer from an existing holder. According to MyBroadband, wholesale service provider and Individual licence holder Easttel informed ICASA that purchasing an I-ECNS and I-ECS permit combination on the secondary market runs upwards of R1 million. That amount excludes the R84,738 licence transfer application fee. Easttel supported issuing new licences to reduce barriers to competition.
SpaceX aims to secure an I-ECNS and I-ECS licence combination so that it can deploy its Starlink low-Earth-orbit satellite broadband offerings in South Africa. While it could afford the R1 million price tag on the secondary market, its transfer application would fail because it is not 30% owned by historically disadvantaged individuals. SpaceX noted that present rules have converted I-ECNS permits into exchangeable goods that encourage existing holders to engage in rent-seeking conduct.
Alongside Amazon Leo, Sateliot, GSOA, Easttel, and SprintSA—which noted that steep licence acquisition expenses hampered marketplace competition—SpaceX registered its complaints. They also said negotiations were often prolonged, at times unfruitful, and depended entirely on finding a willing seller. SpaceX argued that the current framework created unnecessary and artificial market barriers, giving existing licence holders significant control over market entry.
Questions About South African Telecom Licences
Why are existing telecom licences so expensive in South Africa?
ICASA has not issued new licences in 16 years, creating an artificial scarcity. The only way for new entrants to obtain an infrastructure or service licence is to apply for a transfer from an existing holder, who can then charge substantial sums.
How much does a licence transfer cost through ICASA?
Easttel told ICASA that acquiring a licence pair on the secondary market costs more than R1 million, excluding the official R84,738 licence transfer application fee.
Why does SpaceX want an Individual licence in South Africa?
SpaceX wants to acquire an I-ECNS and I-ECS licence pair to launch its Starlink low-Earth-orbit satellite broadband service. However, its transfer application would fail because the company is not 30% owned by historically disadvantaged individuals.
What is the deadline for the current ICASA inquiry?
ICASA published its discussion document and gave interested parties 45 working days from 30 October 2026 for further comment.
Related reading