The role of Telcos in fostering Inclusive connectivity in South Africa

Abstract

This study explores the role of telecommunications companies (telcos) in South Africa in fostering inclusive connectivity, and the effectiveness of regulatory frameworks and policies that drive inclusive connectivity in the telecommunication industry. While South African policies emphasise the significance of inclusive connectivity for socio-economic development, the digital divide remains a pressing issue. Semi-structured interviews were conducted with nine purposively sampled industry professionals within the telecommunications sector. The interviews aimed to shed light on the ways in which those working in the sector perceive the role that telcos do, and should, play in fostering inclusive connectivity. Stakeholder Theory, together with the related Social Contract Theory and Technology Social Responsibility, were used as a theoretical framework for interpreting the responses of interviewees. A thematic analysis was used to analyse the data, identifying common or significant themes related to the role of telcos and of the regulatory frameworks that govern the sector. The results reveal a strong consensus on the significant role telcos play in fostering inclusive connectivity in South Africa. However, industry professionals identify several barriers to telcos' contributions in this area. Some participants expressed that expanding services into rural and underserved regions is often not commercially viable due to high infrastructure costs and lower demand. Additionally, concerns were raised about the perceived lack of legitimacy of the Independent Communications Authority of South Africa (ICASA), stemming from the alleged misuse of the Universal Service Fund, which may be undermining its ability to effectively hold telcos accountable to their license obligations. Despite these challenges, interviewees highlighted instances of positive practices, especially around digital skills programmes, and proposed innovative solutions for improvement. These insights led to several recommendations from iii the study. For the government, key recommendations include stricter enforcement of license obligations, greater transparency around the Universal Service Fund, and better protection of infrastructure against theft and vandalism In addition, policies addressing spectrum allocation, business partnerships, and accountability in the management of the UFS must be prioritised. Telcos could also explore better collaboration and infrastructure sharing partnerships with each other and leverage new technologies to accelerate connectivity rollout in underserved areas. Innovative funding models, such as results-based financing, could also be considered as a way for government to incentivise greater market reach by telcos. Suggestions for further research include comparative studies with other countries that are also pursuing inclusive connectivity, and impact evaluations of innovative solutions that are considered within the telecommunications sector. This study contributes to the theoretical understanding of inclusive connectivity in South Africa by applying and extending Stakeholder Theory, Social Contract Theory and Technological Social Responsibility theoretical frameworks to the telecommunications context of South Africa. The research findings demonstrates that telcos view their role as extending beyond profit-making to ensuring societal benefits. The study further contributes to the body of qualitative research in inclusive connectivity in South Africa using a constructivist paradigm and semi- structured interviews.