New regulations in South Africa’s telecoms industry that force Internet Service Providers (ISPs) to have at least 30% black ownership will not work and are effectively a form of legalised corruption.
This is the view of one owner of a prominent South African ISP, who only agreed to give their unfiltered view about the controversial topic on condition of anonymity. Other large ISPs in South Africa declined to comment on the matter.
The ISP owner told MyBroadband that experience in other industries had proven that this type of “forced transformation” would not have the desired outcome.
At the end of March, South Africa’s telecommunications regulator, Icasa, published new regulations which require all telecoms licensees, including ISPs, to have black owners.
“An Individual Licensee must have a minimum of 30% of its ownership equity held by black people, determined using the flow-through principle,” the regulations state.