Electronic Communications Amendment Bill

South Africa's telecommunications sector is currently governed by the Electronic Communications Act of 2005. This law sets out the rules for how companies can build and operate electronic communications networks — things like mobile towers, fibre cables, and the radio frequencies (known as spectrum) that carry mobile data and voice calls.

Over the years, concerns have grown that the existing law has not kept up with the realities of a modern digital economy. Rolling out network infrastructure — like putting up a mobile tower or laying fibre — can be a slow and frustrating process because each local municipality has its own rules and by-laws about what is allowed and how approvals are granted. This creates a patchwork of different requirements across the country, which delays connectivity and raises costs for network builders.

There are also concerns about spectrum — the invisible radio frequencies that mobile networks use to carry data. Spectrum is a limited public resource, and in South Africa some companies hold spectrum licences but have not fully used the frequencies they were allocated. Meanwhile, other companies and new market entrants struggle to access spectrum they need to build competitive services. The current law does not adequately deal with this problem.

In addition, the existing rules around facilities leasing (where one company rents network infrastructure from another), wholesale pricing (what companies charge each other for network access), and mobile virtual network operators (MVNOs — companies that sell mobile services without owning their own network) have been seen as inadequate, leading to competition concerns and high costs that ultimately filter through to consumers.

Ordinary South Africans who use mobile phones, the internet, or any digital communication service will be affected, because the bill aims to make connectivity faster to roll out and potentially cheaper through better competition.

Local municipalities and the Minister responsible for local government will be directly affected, because the bill proposes a national standard by-law that would override or harmonise the different municipal rules about building network infrastructure. This changes how local government exercises its authority over infrastructure deployment in their areas.

Telecommunications companies — including large mobile network operators like those that currently dominate the South African market — will be affected by new rules on spectrum sharing, facilities leasing, and wholesale pricing. Companies that currently hold spectrum they are not fully using could be required to share it.

Mobile Virtual Network Operators (MVNOs) — smaller companies that sell mobile services by buying capacity from the big networks rather than building their own — will be affected because the bill proposes specific regulation of MVNO services and roaming, which could make it easier for these smaller players to enter and compete in the market.

Businesses that rely on data and connectivity, as well as investors in the telecommunications sector, will also be affected because the rules governing how the market operates and how infrastructure can be built or shared will change.

The bill proposes six main changes to the Electronic Communications Act of 2005.

First, it wants to empower the Minister responsible for local government to create a single, national standard by-law covering the rapid deployment of electronic communications networks and facilities. This means that instead of every municipality having its own different rules for approving things like mobile towers or fibre trenching, there would be one consistent national standard that applies everywhere. The goal is to speed up infrastructure rollout by removing bureaucratic inconsistencies across hundreds of different local authorities.

Second, the bill introduces what it calls the 'use it or share it' principle for spectrum. This means that if a company holds a licence for a portion of radio frequency spectrum but is not making full use of it, they could be required to share that spectrum with other operators. This is designed to stop spectrum from sitting idle while other network builders cannot access what they need.

Third, the bill proposes to regulate roaming and Mobile Virtual Network Operator (MVNO) services. Roaming refers to when your phone connects to another network — either within South Africa or abroad — because your own network's signal is not available. MVNOs are companies that sell mobile services without owning physical network infrastructure; they rent capacity from the big operators. By formally regulating both, the bill aims to create clearer and fairer rules for how these services must be provided and priced.

Fourth, the bill seeks to improve the facilities leasing framework and introduce wholesale pricing rules and standards. Facilities leasing is when one company rents network infrastructure — like towers or cables — from another. Wholesale pricing is what network owners charge other companies for access to their networks. By setting clearer rules and standards here, the bill aims to make it more affordable and straightforward for smaller companies to access the infrastructure they need to compete.

Fifth, the bill proposes improved competition regulation within the electronic communications sector, though the specific mechanisms for this are linked to the changes described above — more spectrum access, clearer leasing rules, and regulated MVNO and roaming services all contribute to a more competitive market.

For everyday South Africans, better and faster network rollout means more communities — including rural and underserved areas — could get reliable mobile and internet coverage sooner. When municipalities have inconsistent or slow approval processes, network companies delay building in certain areas because it costs too much time and money. A single national standard could cut through that and bring connectivity to people who have been waiting for it.

The 'use it or share it' rule for spectrum is significant because spectrum scarcity is one of the reasons mobile data in South Africa has historically been expensive. If companies that are sitting on unused spectrum are required to share it, more operators can build services, which should lead to more competition and downward pressure on data prices.

Regulating MVNOs and roaming matters because MVNOs are often the source of cheaper, more flexible mobile plans. If the big networks are required to provide fair access and pricing to MVNOs, more of these smaller, competitive providers can enter the market — giving consumers more choices and better deals on their phone contracts and data bundles.

Improved facilities leasing and wholesale pricing rules mean that new and smaller companies do not have to spend billions of rands building entirely new infrastructure before they can compete. They can rent what already exists at fair, regulated prices. This lowers the barriers to entry in the telecommunications market, which over time benefits consumers through more competition.

If the bill does not pass or is weakened, South Africa risks continuing with the status quo: slow infrastructure rollout, expensive data, limited competition, and millions of people remaining on the wrong side of the digital divide. Given how central internet access is to education, job seeking, government services, and economic participation, the stakes for ordinary citizens are high.