Forcing ISPs to have black owners will be catastrophic – Zakhele Mbhele

rpm

Admin
Staff member
Joined
Jul 22, 2003
Messages
66,542

Sarg3_ZN

Expert Member
Joined
May 17, 2010
Messages
2,052
Forcing South African ISPs to have black owners will be catastrophic – DA

New regulations that force South African telecommunications companies to have black ownership will be catastrophic for ISPs and their customers.

This is according to the Democratic Alliance’s Zakhele Mbhele, who was commenting on recently published regulations from ICASA which dictate that all telecoms licensees must have a minimum of 30% of its ownership equity held by black people cadres, tenderpreneurs and rent seekers.

ftfy
 

Fulcrum29

Honorary Master
Joined
Jun 25, 2010
Messages
43,235
Yeah, DA, and who challenged this regulation?

It is promulgated now. All I can say now is bewared the EE bill.
 

Itsa Trap

Expert Member
Joined
Jan 22, 2020
Messages
1,209
The amount of EFF coloured tape is stifling this economy. You can legislate for change sure, but to a point. Everything else you incentivise. Do you have 30% Black ownership in your ISP, great, here's a 15% tax break.
 

Neuk_

Executive Member
Joined
Jan 23, 2018
Messages
5,464
The amount of EFF coloured tape is stifling this economy. You can legislate for change sure, but to a point. Everything else you incentivise. Do you have 30% Black ownership in your ISP, great, here's a 15% tax break.

In most cases, humans respond a lot better to incentives, you simply cannot legislate and expect to get the same behaviour.
 

Fulcrum29

Honorary Master
Joined
Jun 25, 2010
Messages
43,235
The amount of EFF coloured tape is stifling this economy. You can legislate for change sure, but to a point. Everything else you incentivise. Do you have 30% Black ownership in your ISP, great, here's a 15% tax break.

The incentive lies in the procurement policies.
 

rubber_otter

Expert Member
Joined
May 25, 2009
Messages
1,786
Forcing South African ISPs to have black owners will be catastrophic – DA

New regulations that force South African telecommunications companies to have black ownership will be catastrophic for ISPs and their customers.

This is according to the Democratic Alliance’s Zakhele Mbhele, who was commenting on recently published regulations from ICASA which dictate that all telecoms licensees must have a minimum of 30% of its ownership equity held by black people.
Isn't that the point? To create mass confusion and destroy all companies? That's really all they seem to want to do.
 

now05ster

Expert Member
Joined
Dec 8, 2011
Messages
1,951
The amount of EFF coloured tape is stifling this economy. You can legislate for change sure, but to a point. Everything else you incentivise. Do you have 30% Black ownership in your ISP, great, here's a 15% tax break.
Come now.
 

Swa

Honorary Master
Joined
May 4, 2012
Messages
29,452
"The majority of South African ISPs are small, nimble, independent businesses, which are in fierce competition for customers."
Quick, tell Squirrel. He'll be shocked.
 

eddief1

Expert Member
Joined
Feb 26, 2008
Messages
1,256
This is so bad it's laughable. Most ISP's started like 5 years ago.

I had zero cash, had to work an second IT Job, take a loan from the bank just so I could afford my licence back in the day. But i made it work, knew nothing about networking, but i read, learned, made mistakes along the way

ICASA last time i looked everyone in SA could have done what i did

Oh wait ... it's crazy hard work....never mind
 

Fulcrum29

Honorary Master
Joined
Jun 25, 2010
Messages
43,235
I am sure this will be challenged in a court at some point in time, the problem being that big business will weigh in their 'expertise' on the matter.
 

ToxicBunny

Oi! Leave me out of this...
Joined
Apr 8, 2006
Messages
97,947
Have some self-respect Zakhele, what are you still doing in that organisation?

The reasonable response to this, is he is doing what any intelligent human being would do and speaking out against absolute stupidity.
 

BuckRogers

Well-Known Member
Joined
Jan 17, 2012
Messages
471
This is so bad it's laughable. Most ISP's started like 5 years ago.

I had zero cash, had to work an second IT Job, take a loan from the bank just so I could afford my licence back in the day. But i made it work, knew nothing about networking, but i read, learned, made mistakes along the way

ICASA last time i looked everyone in SA could have done what i did

Oh wait ... it's crazy hard work....never mind
The average IQ in SA indicates that not everyone could start an ISP.
 

Fulcrum29

Honorary Master
Joined
Jun 25, 2010
Messages
43,235
+1
Yep, BEE is racist

They should have made their submission back in 20200, allow me to quote the ICT SMME Chamber,

https://www.ellipsis.co.za/wp-conte...p-by-HDGs-and-application-of-the-ICT-Code.pdf (PDF)

2. It our submission that the pace of transformation in the ICT sector has been hopelessly slow at best; and non-existent at worst. Since the enactment of the Electronic Communications Act, only about 50% of the licensees have managed at the lease, 30% of HDGs equity holding;

6. On class licensees we propose that all class licensees who are licensed to operate in the metropolitan areas, must comply with 30% black ownership requirement at all times of their license validity. We further propose that all licensees operating in districts or municipal areas must have a maximum of two municipal areas to operate in whereby the 30% exemption must be enforced.

8. It is our view that the limit of R10 million annual revenue will also be subjected to abuse. In this regard, we propose that all the licensees must comply with the 30% black ownership, where the operations are small, we propose that they must ensure that they involve local communities in implementing the 30% black ownership requirement. The Authority must be firm in this regard and not give any exemptions;

9. The Chamber supports the Authority in insisting on the ownership of 30% by black people; we further move that the Authority must always require a minimum level 3 B-BBEE status. The score card may apply over and above this requirement of 30% for black ownership;

10. The minimum level 3 must not be considered an exemption of 30% direct ownership by black people since the B-BBEE codes consist of other elements such as procurement and management. The Authority should also require compulsory participation of black people in executive and managerial roles as part of the requirements;

13. 3.The ICT SMME Chamber hereby proposes that, considering the push back by some entities, the faking and the obfuscation of the BBBEE equity ownership, the minimum legislated requirement of 30% equity ownership by HDGs be increased to 51%;
 
Top