A third factor was a conflict of interest between the regulator and the state as the major shareholder of Telkom. The Department of Communication was the custodian of the state's share in the privatised Telkom. But it was also responsible for the policy and regulatory environment in which the company operated. And finally, it is reported that political appointments in key agencies such as ICASA (the regulator) and the Universal Service and Access Agency of South Africa have limited capacity. Despite the governance issues, South Africa has achieved some notable successes.