The licence as a mechanism to improve performance : the case of Cell C

Abstract

The licence is a regulatory tool that regulatory use to assist in their regulatory functions. Licences restricts operator’s’ functions, but also serve as a guideline of acceptable conduct because a licence is a legally binding document containing prescribed conditions that the licencee must meet. If the licencee does not comply with these prescribed obligations and requirements, the licence may be revoked or the licencee may be penalized (Bladwin & Cave 1999). However, in order fro the mechanism of issuing a licence to be an effective mechanism of regulation, the regulator needs to regulate effectively in order to ensure that the licencee’s performance is of acceptable standard. The purpose of this study is to investigate the relationship between issuing a licence and the licencee’s performance; to investigate whether the performance indicators, as defined by ICASA, are adequate, and to develop appropriate performance indicators in order to evaluate Cell C’s performance. Issuing a licence to licencee does not guarantee that the performance of the licencee, such as Cell C, will be effective. Thus, the licencee needs to be evaluated. The case study design has been used for this project. The methodology includes in-dept interviews, documentary analysis, and implementation evaluation research. The report concludes that Cell C has met its licence obligations, that licencing is coupled with effective mechanisms to ensure that the licencee complies with performance requirements, but that, in order for the licencee to improve its performance, effective regulatory intervention is needed.