Light-touch regulations will improve the survival rate of MVNOs, according to the Internet Service Providers’ Association.
Providers’ Association has echoed calls by Africa Analysis MD Andre Wills for more regulatory support to be given to South Africa’s growing mobile virtual network operator sector.“A number of local MVNOs are already Ispa members – MVNOs are in reality a form of ISP – and looking to us to provide regulatory support in a local market where there is a commercial understanding of MVNOs, but no agreed regulatory definition,” said Ispa chair Sasha Booth-Beharilal in a statement.
This benefits consumers by driving the cost of access to connectivity down. However, there is a relatively high rate of failure among MVNOs, with Africa Analysis data showing that 16 of the 34 launched locally have gone out of business.“It is clear that there needs to be more than a bare obligation in a licence to ensure that this spark of competition is nourished,” said Ispa.
The association noted that the finalisation of a legislative framework for MVNOs “will be contentious”, and it has already written to the communications department calling for more detailed provisions to be added to the Electronic Communications Amendment Bill. –The work we do at TechCentral is made possible through the support of our commercial partners. Please help us produce the original and quality South African technology journalism you value by disabling your ad blocker.
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