No WiFi, Big Fines: Regulators Crack Down on Internet Providers
The COMESA Competition Commission (CCC) has initiated an investigation into the merger between Kenya’s Wasoko and Egypt’s MaxAB, a deal finalized in August 2024. This transaction created a combined entity valued at $500 million. The CCC’s probe focuses on potential anti-competitive behavior, suggesting the merger could “substantially prevent or lessen competition in the common market.” At its peak, Wasoko was Africa’s most-funded B2B e-commerce startup, but both companies entered the merger from positions of operational weakness, struggling with cash burn, dwindling investor confidence, and high scaling costs in fragmented markets. The CCC has invited public submissions from competitors, suppliers, and users until October 24, before making a decision on whether the merger harms competition or offers a second chance to two faltering companies.
In South Africa, the Independent Communications Authority of South Africa (Icasa) has mandated Telkom, one of the country's largest telecom operators, to provide free WiFi connectivity to Thusong Centres. These centres serve as crucial public access points for essential government information and services, and have historically suffered from poor connectivity. This directive stems from Telkom’s Universal Service and Access Obligations (USAOs), a license condition requiring operators to extend connectivity beyond profitable urban areas. Telkom is required to connect the first batch of 171 Thusong Centres by April 2026, with full completion by October 2028. Failure to meet these deadlines could result in fines ranging from $28,700 to $57,500 or escalation to Icasa’s compliance committee. Each site must offer uncapped WiFi at 30 Mbps, subject to fair-use limits of 300MB daily and 2GB monthly. Telkom is responsible for all infrastructure, including routers, cabling, firewalls, and maintenance, and must submit bi-annual progress reports. This initiative highlights Icasa's use of license conditions to drive digital inclusion and achieve national connectivity goals.
South Africa has also seen the launch of its first fully operational AI factory, powered by Nvidia’s AI software and infrastructure, developed by Altron, a data and technology company. This factory addresses critical needs in the burgeoning artificial intelligence market by providing infrastructure for companies to build, test, and deploy AI solutions more rapidly, eliminating the need for them to construct their own infrastructure. A key feature is its commitment to keeping local data within the country and adhering strictly to regulatory standards, which is crucial for data sovereignty. The factory also serves as a hub for researchers to scale prototypes and train large language models using African data, thereby tailoring AI solutions to specific African problems. The platform is already operational, with five businesses utilizing its services, including Dataviue, Lelapa AI, and MathU. Given that South Africa’s AI market size reached $809.34 million in 2024 and is projected to exceed $5 billion by 2033, this factory provides essential infrastructure for significant scale and growth in the domestic AI landscape, potentially positioning South Africa as a leader in homegrown AI creation across Africa, where countries like Uganda and Zimbabwe are also developing AI hubs and national strategies.
Recommended Articles
Meta Under Fire: Widespread Probe Launched Across 21 African Markets
Meta faces a formal probe across 21 African markets over its WhatsApp Business API changes, while Nigerian investment pl...
Meta's Smart Glasses Under Fire: Kenya Launches Privacy Probe!
Kenya is investigating Meta's Ray-Ban smart glasses over privacy concerns, scrutinizing their data handling amid global ...
Sun King's Smartphone Invasion: Kenyan Market Shakes Up as EZ 1 Enters the Fray

Sun King has launched its first branded smartphone, the EZ 1, in Kenya, targeting budget-conscious consumers with a pay-...
Telecoms Under Siege: $12M Lost to Theft as Crime Surges 189%!

South Africa's telecom operators face a crisis as theft surges by 189% to $12 million in 2025, making it the dominant co...
You may also like...
5 Phones With Camera Quality That Rivals And Sometimes Beats the iPhone 17
Looking for phones with better camera quality than the iPhone 17? Here are five flagship smartphones offering superior z...
What Chota AVS' Win Says About the Future of AI & Satellite Tech in Africa

Anadata’s Chota AVS win at Nigerian Satellite Week 2026 highlights how AI and satellite tech are converging to solve Afr...
Boxing King Canelo Alvarez Shocks World, Trades Gloves for Books in College Enrollment

Boxing champion Canelo Alvarez has enrolled at San Diego University for Integrative Studies, embarking on a new educatio...
Ex-UFC Star Darren Till Joins Conor McGregor's BKFC Empire

Former UFC fighter Darren Till has joined Bare Knuckle Fighting Championship, with his debut scheduled for May 30 in Bir...
Euphoria Season 3 Shocks Critics: HBO Drama's Narrative Woes Exposed!

After a four-year hiatus, "Euphoria" returns for its third season, marked by a five-year time jump and significant chara...
Dinklage Unleashed: Sci-Fi Icon Joins 'Alien: Earth' Season 2!

Peter Dinklage has joined the cast of FX’s “Alien: Earth” Season 2 as a series regular, with production slated to begin ...
Pop Sensation Ariana Grande Returns to Studio, Fueling New Album Frenzy

Ariana Grande has confirmed her return to the recording studio, sharing photos on Instagram that hint at her eighth albu...
Music World Mourns Loss of 'Funk You Up' Icon Gwendolyn Chisolm at 66

Gwendolyn “Blondy” Chisolm, cofounder of the pioneering hip-hop trio The Sequence, has died at 66. Remembered as a creat...