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IOL News
25-07-2025
- Business
- IOL News
How new regulations will reshape what you watch and listen to
South Africa's media landscape is is expected to changed due to new regulations. Image: IOL South Africans can expect a change in their media consumption habits, as the Department of Communications and Digital Technologies (DCDT) proposes to overhaul the nation's outdated media regulatory framework. The newly published Draft White Paper on Audio and Audiovisual Media Services and Online Safety signals a shift from regulations designed for the "analogue broadcasting era" to one that looks at global streaming platforms, user-generated content, and "non-linear media consumption". According to the department, this update is important as the existing Electronic Communications Act (ECA) is "no longer fit for purpose" in the digital age. Why the old rules don't work anymore For decades, South Africa's media landscape was all about the principle of "scarcity rationale". Simply put, radio frequency spectrum was a limited resource, so this meant strict regulation of broadcasters. This framework, established by legislation like the Independent Broadcasting Authority Act (IBA Act) and continued in the Electronic Communications Act (ECA), focused on "broadcasting" as a unidirectional, one-to-many service delivered over traditional networks. Under the old rules, services like Internet Protocol Television (IPTV) offered on managed networks were considered broadcasting services requiring a licence. What complicated matters was that the TV programming and Video-on-Demand (VOD) services offered over the public internet fell outside the Independent Communications Authority of South Africa's (ICASA) jurisdiction and did not require a licence. Authorities noticed this created a regulatory imbalance, as traditional broadcasters faced "considerable obligations" for local content and stringent advertising rules, while new online players such as Netflix largely operated without these requirements. Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Next Stay Close ✕ What changes will affect South Africans? The proposed White Paper introduces what it calls a "forward-looking approach". It seeks to "balance media freedom with public interest" and ensure regulatory fairness across all platforms. So how will this directly impact what you watch and listen to? The new framework will abandon the narrow, outdated definitions and will make up of three broad categories: traditional broadcasting services, on-demand content services (OCS) (think Netflix and BritBox), and video-sharing platform services (VSPs) (like YouTube and TikTok). What this means for South Africans is that for the first time, global streaming platforms and social media video platforms will be formally acknowledged and potentially regulated in South Africa. The policy aims for a "technology-neutral approach," meaning similar services will be regulated similarly, regardless of how they are delivered. A core focus is enhanced online safety and protection, especially for children. The White Paper aims to "strengthen protection against digital harms". For services like YouTube and TikTok and Very Large Online Platforms (VLOPs), you can expect: Mechanisms to report harmful content (e.g., incitement to violence or hatred, terrorist content). Age verification systems for content that "may impair the physical, mental, or moral development of minors". Parental control systems to help adults manage what children see. A prohibition on advertising in content specifically provided for children. Measures to combat "mis- or disinformation". This means a safer online environment, particularly for younger viewers, and a clearer route to flag inappropriate content. There will most likely be more South African content on streaming platforms . Currently, traditional broadcasters have "considerable obligations" for local content, while OTTs (Over-The-Top services) have none. The policy indicates that "South African content obligations may also apply to On-demand Content Services (OCS)" in the future. What this suggests is that it could lead to a significant increase in local films, series, and music available on streaming services. Another key change is the implementation of a new online ombudsman for complaints. The White Paper proposes to "establish an ombudsman for online safety and media regulation". This will aim to provide an "easily identifiable and accessible route to resolution" for complaints that don't have a clear 'complaint box', so to speak, so there will be a dedicated avenue for dispute resolution, instead of just contacting a general helpline. The listing of "national sporting events which are in the public interest" will be "extended to include the broadcasting of these in the broader AAVMS market". Significant national events, like presidential inaugurations or state funerals, and potentially major sporting events, could become more widely accessible across various platforms, rather than being confined to traditional broadcasters who hold exclusive retransmission rights. Advertising rules would also see change. Currently, there's a "regulatory imbalance" where online advertisers have more leeway than those on traditional radio or television. The policy seeks to harmonise rules for misleading and comparative advertising, and address political advertising and disinformation across all platforms. This could lead to more consistent and transparent advertising practices across all media you consume. What is next? The department has outlined a three-stage implementation plan, spanning up to 24 months, to allow for careful consideration, research, and consultation. This phased approach aims to build consensus and ensure that the new framework effectively benefits South African citizens, businesses, and the creative industries. This overhaul will take time. Compare the process to upgrading a city's entire water supply system. While the old pipes (in this case, analogue broadcasting) served their purpose, they can't handle the demands of modern consumption (the streaming and user-generated content needs). The new plan involves not only laying new, larger pipes (technology-neutral regulation) but also installing new filtration systems (the proposed online safety and ombudsman), ensuring local water sources are prioritised (local content), and connecting every home, regardless of location, to clean, accessible water (universal access). IOL
IOL News
22-07-2025
- Business
- IOL News
Funding shortfall jeopardises SA Post Office's business rescue plan
The South African Post Office's business rescue plan is in jeopardy after promised funds have failed to materialise. No further progress can be made in implementing the Business Rescue Plan without additional funding from the Department of Communications and Digital Technologies (DCDT), Messrs. Anoosh Rooplal and Juanito Damons, the business rescue practitioner (BRPs) of the SA Post Office (Sapo) said on Monday in an update. Because of this, the BRPs are consulting with their legal advisors regarding the company's potential exit from business rescue and the subsequent return of the company to its shareholder, the DCDT, along with a new appointed board. Sapo was placed under business rescue on July 10, 2023 to avoid liquidation. They said in an affidavit that they would award funding to the process, which would encompass funding of a first tranche of R2.4 billion (which was received and used for retrenchments packages) and then a second tranche of R3.8bn, which was going to be used for the infrastructure upgrade and digitilisation process. The BRPS were expecting to to get funding in March 2024 but nothing has materialised to finalise the plan and no funding was allocated to the Sapo per the medium-term budget speech. Of note, Communications and Digital Technologies Minister Solly Malatsi announced this week that Sapo will receive R1.8bn over the Medium-Term Expenditure Framework (MTEF), but this is not funding for the business rescue, it is a universal service obligation (USO). Due to this, a freeze has been implemented on all capital expenditure of Sapo and austerity measures were put in place last year. The BRPs said the freeze on capital expenditure included modernizing Sapo's office hardware infrastructure; building infrastructure upgrades; and IT upgrades. Only critical operational expenses are being incurred. The BRPs are continuing to engage with DCDT in relation to other possible alternatives in the interim. They said they were engaging with DCDT on the constituted Joint Sapo, DCDT and National Treasury Strategic Partners/Investment Task Team, however, the Joint Task Team is yet to convene. However, it got temporary relief of R150 million in funds. "The BRPs were informed at a meeting on 21 February 2025 of a possible virement (the process of transferring items from one financial account to another) of funds of R150m from the DCDT for working capital requirements. National Treasury has since approved the virement and the funds were received in March 2025," the BRPs said. "Although this may provide temporary relief for Sapo until the end of April 2025, the funds are not sufficient to substantially implement the Business Rescue Plan and remove the entity from Business Rescue." Additionally, R381m was allocated from the Temporary Employee-Employer Relief Scheme (TERS) in April 2025 to cover salary costs for a period of six months. A further R1.8bn has been allocated for the Post Office to fulfil its Universal Services Obligation (USO). The USO is a policy that ensures basic services, like telecommunications, are available toeveryone, regardless of their location or ability to pay. There is a shortfall to funds required. The BRPs said R3.8bn is still required to pay the remaining dividends to statutory creditors, provide enough working capital to the business, and to invest in certain infrastructure upgrades in order to sufficiently implement its turnaround strategy. Due to this funding uncertainty, the BRPs said they were aggressively focusing on collecting all outstanding debtors and increasing revenues where possible. Meanwhile, an extensive amount of work has gone into preparing a detailed strategy and financial model, and which are considered by the BRPs to be important supporting documents to the business rescue plan. The detailed strategy and financial model set out the turnaround plan and deals with the 'future proofing' component of the business rescue plan. These documents were presented to the DCDT, National Treasury and the Parliamentary Portfolio Committee on Communications and Digital Technologies. The BRPs said they have implemented the Business Rescue Plan to the extent possible despite the funding constraints. "The business rescue plan can only be fully implemented once we receive the funding or part of the funding that was committed by the government," they said. As regards creditor claims and payments, a total of 99.6% of creditor dividends of 12 cents amounting to R1 015bn have been paid on August 31, 2024. The remaining 0.4% of creditors is a combination of disputed claims and unverified landlord queries. Meanwhile, the top-up dividend of 18 cents to statutory and payroll creditors, including SA Revenue Service, the relevant medical aid schemes and the Post Office retirement fund remains outstanding and payment is conditional upon the receipt of the R3.8bn funding from the National Treasury unlessnew conditions are negotiated with these creditors. These creditors need to be paid. BUSINESS REPORT
The South African
17-06-2025
- Business
- The South African
SA's network providers grilled in parliament
The CEOs of South Africa's network providers faced the music last week in parliament over sub-standard service delivery to the poor. Fronting up to Members of Parliament (MPs) in the Communications Committee on Friday 13 June 2025, South Africa's network providers were openly criticised for not prioritising poor and rural communities. The committee says its goal is to achieve 'universal connectivity' in the country. Specifically, Vodacom, MTN, Cell C, Telkom, and Rain had to answer for poor connectivity in rural communities. As well as their on-going pursuit of expiration policies for data and airtime services. In turn, the CEOs of SA's network providers insisted to the committee they've made major strides in expanding coverage. CEOs say their companies have made great strides, but MPs think more can and should be done for 'universal connectivity' in South Africa. Image: Pixabay At the centre of this furore is the fact the nearly 45% of South African residents need a smartphone with data access to verify their SASSA grants. Recent security updates to stave off fraud and identity theft from the South African Social Security Agency now requires a smartphone and data for biometric verification. As such, the committee believes network providers can do more regarding the cost of data. And called for them to consider measures to further reduce the cost and prioritise rural connectivity, reports The Citizen . Attending MPs also keenly challenged the logic behind data and airtime expiry. Saying, 'It's purely capitalistic exploitation of consumers. Data and airtime are not perishable goods. Therefore, their expiration is unjust and violates consumer rights,' said the committee. Another MP called South Africa's network providers 'loan sharks.' 'Instead of cutting data and airtime costs, they are advancing it,' said the MP. Likewise, the high salaries paid to CEOs of network providers was also called into question. Especially, in light of uplifting poor and rural communities. The committee meets with the Department of Communications and Digital Technologies (DCDT) in the coming weeks to deliberate on its budget. Another conversation took place around constructing a South African satellite. MTN's CEO, Charles Molapisi, told the committee that it has partnerships with non-terrestrial and satellite players such as Starlink. Last month, South Africa took a step closer to obtaining Elon Musk's Starlink satellite internet service. The DCDT published a policy directive around the Electronic Communications Act (ECA) that requires a minimum of 30% shares be in the hands of historically disadvantaged individuals. Many think this will pave the way for the service to enter the country, even though Elon Musk is not black or historically disadvantaged. Let us know by leaving a comment below, or send a WhatsApp to 060 011 021 1. Subscribe to The South African website's newsletters and follow us on WhatsApp, Facebook, X and Bluesky for the latest news.
