Icasa Amends Mobile Broadband Services Regulations to Address Market Power Abuse

The South African mobile telecommunications sector is poised for significant regulatory changes as the Independent Communications Authority of South Africa (Icasa) enacts amendments targeting market power imbalances. Under the revised Mobile Broadband Services Amendment Regulations 2024, dominant mobile operators MTN and Vodacom, identified to have significant market power (SMP), are under new obligations to submit confidential information to Icasa, restructuring how they report financial and operational details.

Icasa released the amendments within a Government Gazette notice on July 5, 2024, considering insights from various stakeholders including MTN, Vodacom, Cell C, Telkom, and the Internet Service Providers Association (ISPA). The mobile giants are mandated to convey accounts, retail tariffs, data revenue details, and other critical documents regularly to Icasa, though the obligation to publicize some of this sensitive information has been lifted – a move aimed at protecting the confidentiality of business operations.

The revised regulations shed certain previous prerequisites, such as the divulgence of wholesale pricing for Mobile Virtual Network Operators (MVNOs) and Access Point Names (APNs) on the operators' websites. This reflects a shift from stringent transparency toward a modulated approach where non-confidential reports are published while reserved matters are directly reported to Icasa quarterly.

Contentions arose around clauses 7(f) and 7(g) which governed wholesale price regulation for MVNOs and APNs, wherein dominant operators were required to rationalize retail versus wholesale price disparities. While MTN and Vodacom agreed to the clauses' removal, this sparked opposition from Cell C, which argued for the continuation of Icasa's regulatory oversight to prevent market exploitation. ISPA contested Icasa's authority to mandate explanations from non-SMP operators on pricing strategies, and Telkom expressed concerns regarding potential uncertainty in counteracting market power abuses moving forward.

Icasa, after contemplating these concerns, resolved to uphold the removal of clause 7(e), asserting a lack of SMP presence in the APN and MVNO markets, despite Cell C's dissension. Yet it partially acquiesced to retaining clause 7(f), acknowledging the critiques and the need to ensure wholesale pricing oversight, while discarding clause 7(g) to reflect the Authority’s stance on availability of other justifications.

These reforms reflect Icasa's endeavor to balance regulatory oversight with market viability, ensuring dominant players are accountable without stifling competitive dynamics. The amendment process underscores the intricate dialogue between regulatory bodies and industry stakeholders, shaping a more resilient and fair market for South African consumers and telecom businesses alike.