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ICASA Explores Load-Shedding Impact on ICT Sector and Potential Relief Measures for Top Companies

Published January 28, 2024
10 months ago

Load-shedding has become a familiar challenge in South Africa, impacting not only the daily lives of citizens but also the integral operations of the ICT sector which is pivotal to the country’s modern economy. Responding to the severity of the situation, the Independent Communications Authority of South Africa (ICASA) has initiated a comprehensive inquiry to understand the repercussions of persistent power outages and explore potential regulatory relief for major ICT companies.


The acting chair of ICASA, Yolisa Kedama, has affirmed the authority's commitment to examining the effects of load-shedding on ICT providers and considering measures to alleviate their burden. The announcement has been met with approval from industry leaders, such as Vodacom and MTN, indicating a strong desire for solutions that could secure network resilience and sustain technological infrastructures.


MTN South Africa's Jacqui O'Sullivan expressed that frequent power interruptions not only shorten the lifespan of essential equipment but also inflate operating costs. Vodacom echoes this sentiment, emphasizing hopes that the inquiry will lead to a relaxing of stringent compliance mandates, thus permitting them to better prioritize the robustness of their networks.


MultiChoice expects that this process will shed light on the unprecedented strain load-shedding exerts on technology-dependent businesses and help foster an environment where relief measures can be enacted.


However, these firms aren't idly waiting for regulatory interventions. They've already poured substantial investments into mitigating load-shedding consequences. An example is Vodacom's promising strides in its virtual wheeling initiative with Eskom, which entails purchasing electricity directly from independent power producers. Such moves set the stage for bringing more private power into circulation, a step that could effectively contribute to resolving the load-shedding crisis.


Vodacom spokesperson Byron Kennedy elucidates a three-phase strategy wherein the telecom giant is progressing from an agreement with Eskom towards sealing deals with independent power producers. The culmination of these efforts looks to not only imbue Eskom's grid with additional capacity but also push Vodacom towards satisfying its power needs entirely through renewable sources.


As these proactive steps unfold, there is an undercurrent of concern from the public regarding the allocation of taxpayer money. Amidst an already beleaguered Eskom marred by operational and financial woes, there is apprehension about utilizing public funds to facilitate private entities' evasions of the load-shedding fallout, potentially leaving citizens to endure and finance the persisting power plight.


These developments signal a pivotal moment for South Africa's ICT sector. With ICASA’s investigation underway, the future may see a transformative shift in how the industry withstands and possibly outmaneuvers energy insecurity, drawing a fine balance between corporate resilience and equitable public service.



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