Precisely, use legal etc frameworks and targeted subsidies to foster the environment rather. This would be way more beneficial and allow the entire process to function way more efficiently by using government to set the framework while allowing private companies to innovate and compete.
Two big steps - LLU and the spectrum allocation would be a HUGE step in the right direction. Worry about the rest after that DoC!
I have said it a few times here, but really setting up something like LLU and using policy and legal frameworks to ensure ISP/operators don't cherry pick is really easy. Define metro, urban and rural - maybe with subdivisions for affluent and developmental areas (so urban townships get their fair share). Then define LLU by a split between the defined areas. Per port delivered in one area x ports must be available in other defined area groups. The same goes for wireless access, if you want to put up LTE in Sandton you need to have 5 times the coverage in rural, developmental areas for example.
This would mean the complexity, costs and other problems associated with running a Telco will not fall under the DoC, rather creating the right environment to allow them to flourish while delivering much needed broadband to our citizens in every corner of the country. Honestly is is really simple from the DoC policy and strategy perspective, why they want to keep taking on the difficult side for any reason other than cronyism I can't see.