Liberalising communication services in South Africa

Abstract

There is a broad consensus that for the communications industry to flourish in a country, it must be opened to private competition. However, countries have adopted varied approaches to liberalisation, some more cautious than others. This paper critically assesses South Africa's approach to liberalising its communications industry. It argues that although there have been some gains from the current phased approach, these fall short of the potential gains that could have been achieved had more competition been introduced sooner. It also argues that, with hindsight, some of the fears that gave rise to the approach adopted in the country may have been misplaced. It concludes that there is still considerable scope within the current regulatory arrangements to bring about some of those additional gains now.