Parliament questions State Digital Infrastructure Company

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

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

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To ensure a seamless rollout, the SDIC will hold both 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 officials from the DCDT.

The JOC is responsible for guiding the operations and strategy decisions that will shape the SDIC’s establishment – and also manage the Technical Committee, which will provide ongoing specialist support throughout the project’s lifecycle.

Consolidation concerns

The SDIC is expected to consolidate state digital infrastructure assets, allowing for 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’s presentation, this would also drive down connectivity costs through economies of scale and finally deliver the open-access policies that the Ramaphosa administration has been promising to boost infrastructure sharing between 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 around 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 SDIC’s effectiveness in reducing connectivity costs for impoverished areas.

There’s also the concern about financial stability at Broadband Infraco, as its liquidity and solvency challenges may weaken the new entity's sustainability without additional funding beyond what was allocated under the SA Connect programme for fibre expansion.

Icasa enquiry delays

Committee chair, Khusela Sangoni Diko, also urged Icasa to speed up a market enquiry into the current ICT landscape.

The enquiry would give a clear answer if a state-owned digital infrastructure company remains necessary, given changes in the market since the initial policy on rationalisation was introduced.

“Let there be a process that will provide a better understanding of the market structure from the supply side to establish the extent to which the government still needs to intervene,” Diko stated.

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