Latest news with #DepartmentofCommunicationsandDigitalTechnologies
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habits, as the Department of Communications and Digital Technologies (DCDT) proposes to overhaul the nation's outdated media regulatory framework.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
08-07-2025
- Business
- IOL News
Accelerating South Africa's Intelligent Future: Huawei Connect 2025 Showcases Pathways to Industrial Transformation
Huawei held its highly anticipated Huawei South Africa Connect 2025 in Johannesburg, South Africa, bringing together over 2,900 leaders from government, business, and the technology sector to explore how intelligent technologies can power the country's advance from digital adoption to intelligent transformation. Themed Accelerate Industrial Digital Intelligence for South Africa, the event focused on how artificial intelligence, cloud computing, and smart platforms are reshaping industries — moving beyond connectivity to build a truly intelligent and sustainable future, enabling industry growth, unlocking inclusion, and driving long-term national development. Solly Malatsi, Hon. Minister of the Department of Communications and Digital Technologies Image: Supplied At the event, Hon. Minister of the Department of Communications and Digital Technologies, Solly Malatsi, noted that South Africa has developed four measurable Ministerial Priorities: Expanding Connectivity and Access to Devices, Building a Digitally Skilled Society, Unlocking the Productive Use of Technology, and Creating a Supportive Environment for Inclusion and Investment. These four priorities aim to build an innovative and high-performing digital ecosystem for all South Africans. 'South Africa is not only embracing new technologies, but we are helping to shape how they apply across the continent and the globe. We recognise that digital transformation is a powerful driver of innovation, efficiency, and inclusion. From rural clinics offering visual consultations and learners accessing online education, to township entrepreneurs taking full advantage of technological solutions to market their products beyond the boundaries of our country, we have seen its true impact here at home,' he adds. Will Meng, CEO of Huawei South Africa Image: Supplied Will Meng, CEO of Huawei South Africa, delivered the opening address, describing digital transformation as the foundation for economic growth and national progress — but emphasising that South Africa is now entering the age of intelligence, where cloud, AI, and smart systems will define the next chapter of development. 'We stand at the dawn of the age of intelligence, where AI, cloud computing and smart systems are revolutionising industries, unlocking opportunities and redefining efficiency. At Huawei, our goal is very clear – to accelerate South Africa's journey to industrial digital intelligence, driving innovation, boosting productivity and ensuring long-term competitiveness because technology is a tool for people, empowering communities, uplifting lives, and building a brighter future,' says Meng. Joy Huang, Vice President of Huawei Cloud Image: Supplied As intelligent transformation becomes central to industry evolution, Joy Huang, Vice President of Huawei Cloud, shared how Huawei's cloud-first approach is enabling AI innovation across sectors. 'Huawei Cloud is dedicated to offering AI-native cloud services. By innovating with our customers and partners together to accelerate AI-driven innovations and implementing our 'Cloud for AI' and 'AI for Cloud' strategies, we aim to expedite intelligent transformation across industries in South Africa.' Hong-Eng Koh, Global Chief Public Services Industry Scientist of Huawei Image: Supplied Hong-Eng Koh, Global Chief Public Services Industry Scientist of Huawei, outlined the broader shifts driving the new era of transformation, cautioning that successful adoption depends on more than infrastructure and platforms; "Digital transformation is not about technology, it's about transforming your business to make it relevant. But getting ready for the intelligent world requires several critical elements to ensure success: governance and structures must reflect this evolving landscape; laws and regulation must be protective without being restrictive; and we must invest in skills and talent, security and sovereignty, and sustainability." Gene Zhang, CEO of Huawei South Africa Enterprise Business Image: Supplied Gene Zhang, CEO of Huawei South Africa Enterprise Business, further introduced Huawei's deep commitment to South Africa's intelligent transformation journey, drawing on 26 years of local innovation and collaboration. He emphasised that Huawei's strategy has evolved through key phases — from building foundational connectivity, to cloud adoption, and now embracing an All Intelligence strategy which includes a reference architecture, four enablement models, and over 200 industry solutions to help accelerate digital and intelligent transformation across finance, government, education, healthcare, transportation, energy, internet service providers (ISP), and more. 'With a deep understanding of diverse industry needs, Huawei has developed a comprehensive six-layer reference architecture that spans intelligent sensing, connectivity, foundational platforms, AI models, and industry-specific applications. This open and collaborative framework empowers businesses to accelerate their intelligent transformation with greater agility, security, and trust,' said Zhang. Peter Zhang, Vice President of Global Partner, Commercial & Distribution, Enterprise Sales, Huawei Image: Supplied Partnerships were highlighted as another cornerstone of Huawei's strategy. Peter Zhang, Vice President of Global Partner, Commercial & Distribution, Enterprise Sales, Huawei, emphasised the importance of ecosystem collaboration to achieve shared transformation goals, "Our strategy in the government and enterprise market is 'Partners + Huawei'. Huawei attaches great importance to partner development and will constantly enhance investment and support for partners." In South Africa, Huawei has collaborated with over 1,400 local companies to jointly address customers' digital and intelligent transformation needs. Additionally, leveraging over 3,000 courses covering 22 technical categories, Huawei aims to train over 50,000 ICT professionals in the region by 2028. Jonas Bogoshi, CEO of Business Connexion Group (BCX) Image: Supplied At the event, Jonas Bogoshi, CEO of Business Connexion Group (BCX), and customers from sectors like government, transportation, electric power, finance, and ISP, shared their success stories of digital and intelligent transformation. 'The world has changed. For us to be relevant, we must create value at scale. And if we want to create value at scale, then we have no option but to invest in digital technology. But, for South Africa to truly benefit, isolated innovations won't suffice. We need to focus on building ecosystems that digitise public services, improve lives, reduce inequality, and develop digital talent. Therefore, we need to invest in technology that will allow enterprises to become a node in a more connected, more intelligent economy. Only then can we realise the full dividend of digital transformation,' said Bogoshi. Two dynamic panels were held to deepen discussions on South Africa's digital future. The 'Amplifying Public Sector Digitalisation' panel featured Peter Mafagana from ACTO, Broadband Infraco; Roche Mogorosi, Chief Information Officer at Gauteng Department of Education; Len De Villiers, CTIO of Eskom Group; and Ayanda Saki, General Manager: Application, Data and Channels of Prasa Group, who explored ways to accelerate public sector digital transformation. Additionally, the 'Accelerating Industry Intelligence' panel brought together Khomotso Molabe, CIO of Personal and Private Banking at Standard Bank Group; Francois Swart, Chief Digital Officer of Maziv Group; Garth Messina, Head of Infrastructure at Woolworths; and Victor Thobakgale, Group Technology Operations Lead at African Rainbow Minerals, focusing on how intelligent technologies can drive innovation and efficiency across industries. Huawei has been doing business in the country for 26 years, its presence led by the ethos "In South Africa, for South Africa". Huawei has consistently provided leading ICT infrastructure on top of talent development and technological innovation platforms to further the development of South Africa's digital and intelligent economy. Moving forward, Huawei will continue to work closely with customers and partners, gain profound insights into industry scenarios and needs, provide customised solutions, and jointly build a thriving ecosystem. For more information, please visit Huawei online at or follow us on:
The South African
01-07-2025
- Business
- The South African
POLL: Should Starlink operate in SA, without abiding by BEE laws?
Elon Musk's Starlink is reportedly set to invest over R2 billion into South Africa's economy, as a means of 'working around' Black Economic Empowerment (BEE) policies, which requires a stake in local shareholding for foreign investors. Instead, the internet satellite service could offer equity equivalent investment programmes (EEIPs), as recently gazetted by the Department of Communications and Digital Technologies. Elon initially slammed the transformative legislation as a 'racist law', as he was 'not black'. According to reports, Starlink, which falls under SpaceX, is looking to invest over R2 billion in South Africa as part of its prospective deal to operate in the country. Business Day reports that the company would finance infrastructure to support the Southern African Development Community (SADC), which is made up of 16 countries. The move is thought to be a way to 'work around' local BEE policies, which require 30% local shareholding for foreign investors. Is Elon Musk's Starlink getting the greenlight to operate in SA? This follows a new policy direction offering 'alternatives' to BEE. Images via X: @starlink In May, Minister of Communications and Digital Technologies Solly Malatsi gazetted a policy direction for his department on EEIPs, which are considered 'alternatives' to transformative legislation. Without mentioning Starlink, the minister claimed that the policy would 'attract investment,' specifically in operating licensing. The minister revealed that current legislation for foreign investments 'did not allow companies to contribute to transformation goals in ways other than traditional ownership'. The news that Starlink could operate in South Africa, and potentially 'bypass' BEE requirements, has seen mixed reactions on social media. @PrayerTmos: 'Elon Musk tried to tank the South African economy, and create boiling racial tensions, and never apologized. It means he still plans to continue with the sabotage of SA, and with such communications business, espionage and spying will become easier.' @XnBoeremeisie: 'With a 75%+ debt-to-GDP ratio, the government better accept Elon's investment offer!' @Squirrel1980021: 'We have a BEE policy and is not it going away. The Chinese and Russians will comply.' @stallionheat02: 'Starlink is a game changer for rural and underserved areas. Just imagine having internet everywhere in the world with one subscription for less than 1K. Bring Starlink, and let those who want to use it use it'. 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.
Daily Maverick
23-06-2025
- Business
- Daily Maverick
Swiftnet sells, Telkom swells: one deal, big dividends — for now
Telkom dazzled investors with its financial results recently, but a deeper dive reveals that the sale of the Swiftnet tower infrastructure business – once considered central to Telkom's strategy – provided the windfall that lit up the numbers. But strip out Swiftnet, and the glow fades fast. The Department of Communications and Digital Technologies (DCDT) congratulated Telkom on its 'phenomenal' results, with Minister Solly Malatsi hailing it as 'a key enabler of South Africa's digital future' in a statement on 10 June. Unlike traditional SOEs like Eskom or Transnet, Telkom is listed on the JSE and not governed under Schedule 2 of the Public Finance Management Act – but with 54.5% of its shares held by state-linked entities, it behaves more like a public-interest asset than a private firm. Despite these apparently strong financials, all of these indicators are positive as a result of the sale of a core business within Telkom's holding – Swiftnet, which owns all of the company's mast and tower business. The numbers vs the narrative Telkom's FY2025 performance was strong across all headline metrics: group revenue rose 3.3% to R43.9-billion, adjusted EBITDA jumped 25.1% to R11.8-billion and free cash flow surged to R2.78-billion – a 555% increase on the prior year, almost unbelievable on paper. The company declared dividends for the first time in four years, totalling R1.3-billion. Every number on the switchboard appears to be green, with the state emerging as a major beneficiary: a R540-million dividend windfall flowed into government coffers just in time to help buffer the fiscus. Still, one question remains on the line: are these numbers the result of strategic depth, or a carefully choreographed series of asset disposals? A towering turnaround At first glance, the turnaround reads like a textbook recovery play: streamlining, divestiture, energy efficiency, capital discipline. However, a detailed analysis of the financials shows that nearly all the key indicators of Telkom's turnaround hinge on a single major action: the sale of Swiftnet, Telkom's mast and tower managed more than 4,000 high sites – many in remote areas – serving as the physical spine of Telkom's mobile and fixed wireless networks. Its sale means Telkom will now pay to access the infrastructure it once owned, with long-term lease costs baked into future operations. Swiftnet's disposal generated R6.6-billion in proceeds, cut net debt to almost half of what it was, bringing it to R7.48-billion, and unlocked the funds for dividend reinstatement. The buyer was a consortium led by Actis, alongside Royal Bafokeng Holdings and the Mineworkers Investment Company. Not insignificantly, the R4.4-billion net gain on Swiftnet's sale also inflated reported profit, pushing EBITDA margins higher. Free cash flow surged by 555% – impressive, yes, but primarily due to this windfall, a reduction in capex and tightened cost controls. That eye-watering number highlights the real concern: Telkom's FY2025 turnaround looks like a one-trick pony, unless the company intends to keep selling off core infrastructure. Telkom brought back dividends this year, promising to pay out between 30% and 40% of its free cash flow to shareholders. But in 2025 it went even higher, paying out 48%. That extra payout was made possible by the cash it earned from selling Swiftnet, which gave the company a big financial boost. Notably, Telkom hadn't paid dividends since 2021, citing pandemic pressures, margin decline and capital requirements. The 2025 payout signals a strategic shift, though not necessarily a structural one. 'Without Swiftnet's R4.4-billion disposal gain, Telkom's core profit story looks significantly more modest – and its future operating costs are now structurally higher,' the company noted in its investor release. Divestment-driven growth The Swiftnet deal transferred control of income-generating infrastructure to an external operator. Telkom now leases back some of these same towers at a cost. While the short-term capital unlocked helped reduce debt and deliver dividends, it baked in long-term lease liabilities. Selling vs leasing towers – a case study in strategic trade-offs MTN's 2021 sale of more than 5,700 towers to IHS Towers unlocked immediate capital and was initially hailed as a strategic move to streamline its balance sheet. However, the deal later attracted criticism as leaseback costs began to rise, eroding the expected financial benefit. More significantly, MTN ceded control over key passive infrastructure, which reportedly led to delays in site upgrades, reduced agility in rural network expansion and strained relationships with the tower operator over access and maintenance. The long-term implications of relinquishing infrastructure ownership became a cautionary tale in the telecoms industry – one that Telkom may now be echoing with the Swiftnet sale. What this means for you Telkom's big numbers might look great for now, but they came from selling key parts of the business, like its cellphone towers. That helped pay shareholders, but it also means Telkom now has to rent back the infrastructure it once owned. If this cuts into future network investment, you could see slower upgrades, patchy coverage in rural areas, or even higher prices. If you're a Telkom customer, it's fair to ask: will I get less for more? Will my signal suffer? Or should I start looking at other networks? Whether this will, in fact, be the case will likely only be seen by Telkom's performance and service over the current financial year. On the spectrum – litigation and market dominance In 2021-22, Telkom challenged Icasa's high-demand spectrum auction, claiming the process favoured comparative incumbents such as Vodacom and MTN. It cited ignored roaming agreements (such as Vodacom-Rain) and obsolete competition models. 'Icasa failed to conduct a new competition assessment and relied on outdated frameworks,' Telkom argued in its court application filed with the North Gauteng High Court at the time. While the litigation was eventually withdrawn, the company's underlying point may now work against it. With debt slashed and cash freed up, Telkom is better placed than ever to bid aggressively, potentially replicating the very dominance it previously challenged. Paper tiger or infrastructure backbone? Telkom's 2025 performance is no doubt impressive, but many of its gains are the result of concretely one-off, non-repeatable actions. The 2025 financial year gave Telkom a fiscal breather. The current financial year will determine whether that space becomes structural headroom, or whether the company suffers in delivery of key services due to the sales it has made. DM
IOL News
28-05-2025
- Business
- IOL News
Business rescue practitioners prepare to file court papers to exit Post Office
Business rescue practitioners say they have informed the Department of Communications and Digital Technologies of the pending court application to terminate the business rescue at the South African Post Office. Image: Independent Newspapers Archives The business rescue practitioners are preparing to file papers with the High Court as part of the exit strategy from the South African Post Office (SAPO). This was revealed by co-business rescue practitioner Anoosh Roopal, along with his co-business rescue practitioner Juanito Damons, who briefed the Communications and Digital Technologies Portfolio Committee on Wednesday. 'We are in discussions with the department around the business rescue having to end and business rescue practitioners having to leave,' Roopal said. 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 ✕ SAPO was placed under provisional liquidation in February 2023 and later on business rescue in July 2023 after the board of directors was dismissed two months earlier. Upon their appointment, Roopal and Damons developed a business rescue plan that was approved by the creditors and then assumed management control of the business. Roopal said they were now in discussions with the Department of Communications and Digital Technologies and preparing a court application to terminate the business rescue process. This takes place as the financial plan to ensure SAPO remained a going concern was being finalised amid moves to secure payment of R509 million of statutory and payroll creditors owed to the South African Revenue Service (SARS) and medical aid schemes. 'Despite the R3.8 billion not being provided, the business rescue practitioners and the department are in discussions to develop an alternative plan to pay the remaining 18-cent creditors,' he said. Damons told the committee that they had already consulted their attorneys about the pending application, and the department was aware that they were preparing an application. 'We will ask the court to terminate the business rescue, and we would also ask for consent so that Anoosh and I can file with the Companies and Intellectual Property Commission a notice of substantial implementation.' Damons said the application comes at a good time, as there was a specialised court in Gauteng that dealt with insolvency and business restructuring. 'To get to that court, it will take us about three to four weeks if we go on a semi-urgent basis, for example,' he said. Court papers will be drafted next week, and engagements with the department and the unions will take place to make sure all are on the same wavelength. Damons said that when a business enters business rescue, it has to show that the company does not have the financial ability to cover its operational expenses when they become due and payable. 'At SAPO, at least that does not give us sleepless nights, we have enough funding from June and the ensuing six months. SAPO will be able to pay its operational expenses next six months.' Roopal said SAPO now has a turnaround strategy in line with its fulfillment of the strategic objectives at the entity. 'What we did was the turnaround strategy. We are quite comfortable that the Post Office has been equipped with a strategy that is viable. All of this depends on funding,' he told the committee. He also said they were looking together with the Department of Communications and Digital Technologies to find an alternative to pay about R509m owed to statutory bodies such as SARS and medical aids. 'That will discharge the rescue plan and hand over the business back to the shareholder,' said Roopal. Damons said the department has asked them to negotiate with the creditors owed R509m in statutory and payroll deductions. 'We started talking to these creditors about possible deferment of payment. The department asked us to have a discussion around deferring these payments until 31 March 2026. We reached out, and we have not finalised anything.' However, Damons said there was a lot of work left in terms of the exit strategy. 'We don't want to be irresponsible by leaving SAPO and finding they are back in this situation, and there is another application looming. 'Exiting business rescue would mean giving up the moratorium that is in place that protects SAPO from any legal proceedings; to start proceedings must get consent of business practitioners before approaching the court.'
