21 August 2019
Review of the Price Cap Regulations for Reserved Postal Services
The postal services sector has, in recent times, undergone large changes that are shaped by, among other forces, technological progress and a need to alter regulatory frameworks to ensure effective provision of the postal services. The Independent Communications Authority of South Africa (ICASA) is therefore giving notice of its intention to review the Price Cap Regulations for Reserved Postal Services, in particular the South African Post Office (SAPO).
The review process is mainly to impose effective price controls in the reserved postal services and to ensure that regulation of the reserved services environment remains appropriate and sufficient to secure the efficient and financially sustainable provision of the reserved postal services.
The review follows the conclusion of the Regulatory Impact Assessment (RIA) on the Regulations to determine whether or not the imposition of price controls is still relevant and propose an alternative form(s) of regulation, if necessary. The RIA found that a new regulatory framework is urgently needed, as the current price control obligation is no longer effective or proportionate.
On Friday, 23 August 2019, ICASA will publish a questionnaire requesting some information and opinions from market participants and general stakeholders. This information relates to, among others, SAPO’s financial sustainability and efficiency, competition in the parcels and letters sector as well as the appropriateness of past and proposed regulatory conditions.
All interested stakeholders are requested to participate in this process in order to assist ICASA to make informed decisions particularly as it relates to the imposition of price controls in the reserved postal services market or propose alterative regulation of the reserved postal services sector.
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