The SDIC is designed as a wholesale digital infrastructure provider, which will advance the goal of providing universal access to affordable broadband and broadcasting services throughout South Africa.

It will integrate both Sentech’s wireless broadband network and BBI’s fiber infrastructure, creating a nationwide network that can serve schools, healthcare facilities and rural government sites.

To ensure smooth implementation, SDIC will have Electronic Communications Services (ECS) and Electronic Communications Network Services (ECNS) licenses, positioning it to lease managed infrastructure for public sector connectivity needs.

This will be overseen by a Joint Oversight Committee (JOC), made up of senior representatives from both entities, including their CEOs, CFOs and DCDT officials.

The JOC is responsible for guiding the operations and strategic decisions that will shape the establishment of the SDIC, and also managing the Technical Committee, which will provide ongoing specialist support throughout the project lifecycle.

Consolidation concerns

The SDIC is expected to consolidate state digital infrastructure assets, enabling efficient use of resources and a unified state-managed network.

This would make the SDIC a common carrier, offering high-speed links as well as last-mile connectivity to previously underserved communities and government facilities.

According to the DCDT presentation, this would also reduce connectivity costs through economies of scale and finally implement the open access policies that the Ramaphosa administration has promised to boost infrastructure sharing between the public and private sectors.

However, members of the Portfolio Committee remain cautious about the financial and operational viability of the SDIC.

state infrastructure

The committee wants more clarity on the inclusion of other state infrastructure, such as networks owned by Eskom, Transnet, Sanral and Prasa, within the SDIC.

Without these assets, the committee fears a fragmented approach that could limit the effectiveness of the SDIC in reducing connectivity costs in impoverished areas.

There are also concerns about financial stability at Broadband Infraco, as its liquidity and solvency challenges may weaken the sustainability of the new entity without additional funding beyond that allocated under the SA Connect program for fiber expansion.

Delays in Icasa consultation

Committee chairperson Khusela Sangoni Diko also urged Icasa to expedite market research into the current ICT landscape.

The research would give a clear answer whether a state-owned digital infrastructure company is still necessary, given the changes in the market since the initial rationalization policy was introduced.

“Let there be a process that provides a better understanding of the market structure from the supply side to determine to what extent the government still needs to intervene,” Diko said.

The Portfolio Committee’s recommendations signal a call for the DCDT to explore a broader range of options and ensure that the formation of SDIC is fiscally responsible and strategically aligned with South Africa’s connectivity objectives.