Whilst it is indicated that the hinderances to effective competition did not include an insufficient number of individual ECNS licensees, the policy direction concerns the licencing framework for individual services licences provided for in the Electronic Communications Act, 2005 (ECA).

Section 5(6) of the ECA provides that ICASA may only accept and consider applications for an individual ECNS licence in terms of a policy direction issued by the Minister in terms of section 3. In other words, absent a policy direction issued by the Minister, no new individual ECNS licences may be issued, and the only way in which such a licence can be obtained by an entity is if an existing individual ECNS licence is transferred to such entity with ICASA’s prior approval.

There appears to be no shortage of individual licences in the market - according to the policy direction, there are approximately 490 individual ECNS licences and 2228 class ECNS licences in circulation – and ICASA has therefore been directed to determine whether new individual ECNS licences will promote the objects of the Act including without limitation, improved competition and the universal provision of electronic communications networks and electronic communications services.

The inquiry will focus on the following:

• whether or not the implementation of the framework in the Act, which allows for the transfer individual ECNS and electronic communications services licences has been effective and efficient regarding the promotion of competition within the sector;
• the demand for and need to invite, accept, and consider applications for new individual ECNS licences;
• whether new individual ECNS licences will promote the objects of the Act and specifically improve competition in the market for individual ECNS;
• whether or not and how new individual ECNS licences will contribute to universal provision of electronic communication networks; and
• whether the benefits of new individual ECNS licenses outweigh the costs, including the costs to the Authority of monitoring and enforcing compliance with any such licenses, and the burden on the environment.

ICASA has been directed to commence the inquiry within three months from 22 August 2025 and submit a comprehensive report within fourteen days of making its findings, to inform potential further policy directions in terms of section 3, read with section 5(6) of the Act.