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.
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