South Africa’s ICT Sector Seeks Calmer Waters Amid Litigation Storm

In the dynamic landscape of South Africa's Information and Communication Technology (ICT) sector, a persistent legal undertow has been the source of much contention and now a renewed focus for resolution. Ahmore Burger-Smidt of Werksmans emphasizes the need for collaborative stakeholder engagement as proposed by Communications and Digital Technologies Minister, Solly Malatsi, to address the litigious environment that has become characteristic of the sector.

Malatsi steps into a role steeped in complexity, with strategies to untangle the convoluted disputes entrenched in the ICT domain. These disputes often sprout from government policies and strategies perceived as divisive or burdensome by the private sector. Malatsi’s call to action came on the heels of legal action by eMedia against former minister Khumbudzo Ntshavheni regarding the transition from old analogue TV signals—a move that raised concerns over access to television for the indigent and broadcaster revenues.

The case of Vodacom suing the Independent Communications Authority of South Africa (Icasa) further illustrates the necessity for dialogue in place of litigation. Vodacom challenged Icasa on approving spectrum pooling agreements favoring its competitors MTN, Cell C, and Liquid Intelligent Technologies, highlighting the intricate layers of policy decisions, licensing, market competition, and regulatory enforcement at play.

However, litigation remains a shield for companies to protect their interests and those of their shareholders against perceived detrimental governmental interventions. Initiatives such as the analogue switch-off, pivotal in reallocating radio frequency spectrum to mobile networks, have been delayed by over a decade due to poor governance and vested interests resulting in significant consequences for networks and electronic manufacturers involved.

Decisive action by Ntshavheni and her successor, Gungubele, has set the ICT sector on a course towards resolution, aiming to cease all analogue TV broadcasts by the end of 2024. It’s an ambitious but necessary objective that Gungubele inherited when the cabinet reshuffled, and with Ntshavheni moving to a new position in The Presidency.

Fundamentally, this pivot towards proactive interaction and policy formulation between the government and the private sector is intended to smooth out the turbulent legal waters. It brings hope of a more harmonious and efficient ICT environment that can keep pace with technological advancements and economic demands.