ISPA Helps Boost Local AI Competitiveness
29 September 202619 October 2026
While the price of data in South Africa continues its welcome downward trend, the overall cost of digital communications requires urgent attention.
ISPA, South Africa’s official internet Industry Representative Body (IRB), says little action is evident when it comes to the accepted global policy of Universal and Meaningful Connectivity (UMC) which prioritises the ability to afford both connectivity and the necessary devices.
A 2026 Cost of Living Report compiled by the Competition Commission [1] indicates that affordability of services and devices remains a substantial barrier to achieving UMC [2] locally.
Echoing this, the recent South Africa Digital Infrastructure Investment Study [3] published by the Development Bank of South Africa (DBSA) makes it clear that affordability must be tackled from two directions.
“Reducing the cost to communicate is key to poverty reduction. As a start, South Africa needs firm action on providing a free basic data allowance to those falling below the poverty line,” says Sasha Booth-Beharilal, ISPA chair.
“This is already an established policy intervention under the National Infrastructure Plan and National Radio Frequency Spectrum Policy,” she adds.
Unfortunately, there appears to be a lack of commitment by the powers that be when it comes to the challenges of local consumers who cannot afford the data nor the devices needed to meaningfully participate in the digital economy.
ISPA notes that the need for dual action specifically involving data and devices has been recognised in national government policy for more than a decade.
However, it is not clear that either the Department of Communications and Digital Technologies (DCDT), nor the Independent Communications Authority of South Africa (ICASA) have the ability to do what is required.
The DCDT has included a cost to communicate programme as one of its deliverables for years, but there is no substance to the programme or clear position on what needs to be done to make devices and data more affordable.
ICASA has, to its credit, made some headway in bringing consumer relief through reforming the rules that govern data rollovers and out-of-bundle charges, ensuring that consumers get more value.
Unfortunately, ICASA’s latest attempt to amend the End-Subscriber and Service Charter Regulations to broaden these reforms has been taken to the High Court by Vodacom and MTN, and the regulator does not have a good record of defending its processes in court.
An earlier attempt by ICASA to introduce greater competition in the provision of mobile broadband services resulted in the publication of a defective set of regulations which were never implemented before the High Court confirmed that they were unlawful to the extent that they could not be saved. ICASA has now abandoned this process.
The most effective interventions to date have come from the Minister through the removal of ad valorem taxes on lower-end smartphones, and the Competition Commission, which concluded an in-depth inquiry into the data services market in December 2019. The Commission negotiated pricing relief for low-income consumers which had a substantial impact in the short term.
It also made recommendations for amendments to the Electronic Communications Act designed to deepen and promote competition and lower the cost to communicate. Unfortunately, it has taken almost seven years to get these amendments before Parliament and they are unlikely to be finalised before the end of 2027.
Finally, the obvious must be asked: Is lowering the cost to communicate still a government priority? Are we committed to Universal and Meaningful Connectivity in South Africa?
ISPA is officially recognised by the DCDT and advocates for an open, free and competitive internet landscape. Visit www.ispa.org.za for more information and follow ISPA on X and Linkedin.
