Mobile data prices in South Africa are higher than in many other countries in Africa and elsewhere. The quick release of spectrum could change that – but continued indecision by policymakers leaves consumers with costly data bills and hinders economic growth.
A long-awaited government policy directive has raised more questions than answers for South Africa’s telecommunications industry, and quashed hope for the quick release of spectrum – which existing mobile network operators say would help them to improve their services and cut data costs.
Spectrum refers to the radio frequencies used for communication over airwaves by radio, television and the mobile telephone industry, as well as other wireless applications like Wi-Fi and Bluetooth. It is both a sovereign asset and a limited resource, managed by national regulatory authorities, which issue the licences needed for its use.
However, policy paralysis and mismanagement has blocked the allocation of new spectrum in SA for more than a decade, forcing existing operators to spend more money on repurposing their infrastructure to meet demand.
The indecision has also prevented local television broadcasters from keeping up with digital migration, a global shift in technology that would have released spectrum which the broadcasters now occupy, to mobile operators.
Addressing the scarcity is crucial to the economy, as wider, cheaper and more efficient network coverage would stimulate innovation, create jobs and ease the cost of doing business in South Africa – attracting more investment into the country. But analysts say that the announcement by communications minister Stella Ndabeni-Abrahams on 26 July, while welcome, points to further delays.
The government has decided to allocate much of the country’s unused high-demand spectrum to a Wholesale Open Access Network (WOAN), which will be established through a consortium of companies with diverse ownership.
The intention is to boost competition by opening the market to small- and medium-sized enterprises, favouring black-owned businesses and including the participation of targeted groups including women, young people, and persons with disabilities.
この記事は Finweek English の 15 August 2019 版に掲載されています。
7 日間の Magzter GOLD 無料トライアルを開始して、何千もの厳選されたプレミアム ストーリー、9,000 以上の雑誌や新聞にアクセスしてください。
すでに購読者です ? サインイン
この記事は Finweek English の 15 August 2019 版に掲載されています。
7 日間の Magzter GOLD 無料トライアルを開始して、何千もの厳選されたプレミアム ストーリー、9,000 以上の雑誌や新聞にアクセスしてください。
すでに購読者です? サインイン
THE HEALTH OF SA'S MEDICAL SCHEMES
As the Covid-19 pandemic abates, finweek takes a look at the financial performance of some of the largest players.
The effect of Gilbertson's departure
With Ntsimbintle Holdings now the major shareholder of Jupiter Mines, it could change SA’s manganese industry.
Making money from music
Why investors are increasingly drawn to the music industry.
Conviction is key
Sandy Rheeder plays a critical role in Mukuru’s mission to open up financial services to the emerging consumer market in Africa through tailor-made technology solutions and platforms.
The post-pandemic toolkit
How CFOs can use technology to support growth.
Big city living exodus
Mini cities like Waterfall City and Steyn City are redefining city-style apartment living.
Big compact, big value
Handsome, with a hefty level of standard specification, the roomy Haval Jolion compact crossover is a great value proposition.
On barriers to entry
There are various ways in which a company or sector can achieve competitive dominance. They usually make for good investments.
Fear and greed in one index
To buck the trend, when markets are hot or cold, is a tough thing to do. However, it can deliver solid returns.
Africa's largest data centre facility coming soon
Vantage Data Centers plans to invest over R15bn for its first African data centre facility in Attacq’s Waterfall City.