The South African government has decided to abandon its wholesale open-access network (WOAN) policy, a move that has been welcomed by some as a necessary step towards improving the country's telecommunications sector. Communications and digital technologies minister Solly Malatsi announced that the reservation of high-demand spectrum for a WOAN has been withdrawn, allowing the Independent Communications Authority of South Africa (Icasa) to license the spectrum to operators. This decision marks the end of a policy that had been debated for years but failed to produce a functioning national network.
The WOAN policy was introduced to promote competition in the telecommunications sector by creating a shared wholesale network that would lower barriers to entry for smaller operators. However, more than seven years after its introduction, there was still no operational network, and demand for mobile data continued to surge. The delay in implementing the WOAN policy has been costly for the economy, with spectrum sitting unused, leading to delayed network expansion, lost investment opportunities, and reduced benefits for consumers.
The original rationale for the WOAN was not without merit, as policymakers hoped it would stimulate competition in a sector dominated by a handful of major players. Greater competition, in theory, would lower communication costs and expand digital inclusion. However, ending the WOAN does not make those challenges disappear, and there is a risk that South Africa simply falls back into the status quo, with existing operators strengthening their networks and consolidating their market positions.
To mitigate this risk, the government has stressed that wholesale-access obligations remain in place, requiring operators awarded spectrum to provide wholesale capacity and network access. Universal-service requirements, rural connectivity commitments, transformation objectives, and safeguards against excessive concentration also remain part of the regulatory framework. These commitments can no longer exist only on paper, and it is up to Icasa to ensure that they are enforced.
The collapse of the WOAN does not mean South Africa has solved its competition problem, and the country still needs a more dynamic telecommunications sector. Smaller operators and service providers must have a realistic chance of competing, and affordable connectivity is still needed for millions of households and businesses that remain excluded from the digital economy.
Icasa's next spectrum allocation cannot be treated as a simple revenue-raising exercise, and additional spectrum should come with measurable obligations. Coverage targets must be enforced, rural rollout commitments must be monitored, and wholesale-access requirements must be practical and enforceable. Network quality must improve, and above all, consumers must see tangible benefits.
The real value of spectrum is not measured by what government collects on auction day but by what happens afterwards: investment, innovation, network performance, wider coverage, and consumer benefits. If those gains fail to materialise, pressure for further intervention will inevitably return. The industry now has an opportunity to deliver the outcomes policymakers once hoped the WOAN would achieve — wider coverage, better quality networks, broader access, and more competitive pricing.
Key points
- The South African government has abandoned its wholesale open-access network policy, allowing Icasa to license spectrum to operators.
- The policy's collapse does not mean South Africa has solved its competition problem, and the country still needs a more dynamic telecommunications sector.
- Icasa's next spectrum allocation must come with measurable obligations to ensure tangible benefits for consumers.
