Close Menu
TechCentralTechCentral

    Subscribe to the newsletter

    Get the best South African technology news and analysis delivered to your e-mail inbox every morning.

    Facebook X (Twitter) YouTube LinkedIn
    WhatsApp Facebook X (Twitter) LinkedIn YouTube
    TechCentralTechCentral
    • News
      Blu Label bets big on energy as it pivots beyond prepaid distribution - Mark Levy

      Blu Label bets big on energy as it pivots beyond prepaid distribution

      25 February 2026
      Dennis Venter resigns as iOCO co-CEO

      Dennis Venter resigns as iOCO co-CEO

      25 February 2026
      Treasury moves to bring crypto under exchange-control rules

      Treasury moves to bring crypto under exchange-control rules

      25 February 2026
      Treasury grants Sentech R700-million special allocation

      Treasury grants Sentech R700-million special allocation

      25 February 2026
      South Africa puts data centres on par with energy, ports in big policy shift

      South Africa puts data centres on par with energy, ports in big policy shift

      25 February 2026
    • World

      Stripe mulling bid for PayPal: report

      25 February 2026
      Xbox chief Phil Spencer retires from Microsoft

      Xbox chief Phil Spencer retires from Microsoft

      22 February 2026
      Prominent Southern African journalist targeted with Predator spyware

      Prominent Southern African journalist targeted with Predator spyware

      18 February 2026
      More drama in Warner Bros tug of war

      More drama in Warner Bros tug of war

      17 February 2026
      Russia bans WhatsApp

      Russia bans WhatsApp

      12 February 2026
    • In-depth
      The last generation of coders

      The last generation of coders

      18 February 2026
      Sentech is in dire straits

      Sentech is in dire straits

      10 February 2026
      How liberalisation is rewiring South Africa's power sector

      How liberalisation is rewiring South Africa’s power sector

      21 January 2026
      The top-performing South African tech shares of 2025

      The top-performing South African tech shares of 2025

      12 January 2026
      Digital authoritarianism grows as African states normalise internet blackouts

      Digital authoritarianism grows as African states normalise internet blackouts

      19 December 2025
    • TCS
      Watts & Wheels S1E4: 'We drive an electric Uber'

      Watts & Wheels S1E4: ‘We drive an electric Uber’

      10 February 2026
      TCS+ | How Cloud On Demand is helping SA businesses succeed in the cloud - Xhenia Rhode, Dion Kalicharan

      TCS+ | Cloud On Demand and Consnet: inside a real-world AWS partner success story

      30 January 2026
      Watts & Wheels S1E4: 'We drive an electric Uber'

      Watts & Wheels S1E3: ‘BYD’s Corolla Cross challenger’

      30 January 2026
      Watts & Wheels S1E4: 'We drive an electric Uber'

      Watts & Wheels S1E2: ‘China attacks, BMW digs in, Toyota’s sublime supercar’

      23 January 2026

      TCS+ | Why cybersecurity is becoming a competitive advantage for SA businesses

      20 January 2026
    • Opinion
      The AI fraud crisis your bank is not ready for - Andries Maritz

      The AI fraud crisis your bank is not ready for

      18 February 2026
      A million reasons monopolies don't work - Duncan McLeod

      A million reasons monopolies don’t work

      10 February 2026
      The author, Business Leadership South Africa CEO Busi Mavuso

      Eskom unbundling U-turn threatens to undo hard-won electricity gains

      9 February 2026
      South Africa's skills advantage is being overlooked at home - Richard Firth

      South Africa’s skills advantage is being overlooked at home

      29 January 2026
      Why Elon Musk's Starlink is a 'hard no' for me - Songezo Zibi

      Why Elon Musk’s Starlink is a ‘hard no’ for me

      26 January 2026
    • Company Hubs
      • Africa Data Centres
      • AfriGIS
      • Altron Digital Business
      • Altron Document Solutions
      • Altron Group
      • Arctic Wolf
      • AvertITD
      • Braintree
      • CallMiner
      • CambriLearn
      • CYBER1 Solutions
      • Digicloud Africa
      • Digimune
      • Domains.co.za
      • ESET
      • Euphoria Telecom
      • Incredible Business
      • iONLINE
      • IQbusiness
      • Iris Network Systems
      • LSD Open
      • Mitel
      • NEC XON
      • Netstar
      • Network Platforms
      • Next DLP
      • Ovations
      • Paracon
      • Paratus
      • Q-KON
      • SevenC
      • SkyWire
      • Solid8 Technologies
      • Telit Cinterion
      • Tenable
      • Vertiv
      • Videri Digital
      • Vodacom Business
      • Wipro
      • Workday
      • XLink
    • Sections
      • AI and machine learning
      • Banking
      • Broadcasting and Media
      • Cloud services
      • Contact centres and CX
      • Cryptocurrencies
      • Education and skills
      • Electronics and hardware
      • Energy and sustainability
      • Enterprise software
      • Financial services
      • Information security
      • Internet and connectivity
      • Internet of Things
      • Investment
      • IT services
      • Lifestyle
      • Motoring
      • Public sector
      • Retail and e-commerce
      • Satellite communications
      • Science
      • SMEs and start-ups
      • Social media
      • Talent and leadership
      • Telecoms
    • Events
    • Advertise
    TechCentralTechCentral
    Home » Opinion » Duncan McLeod » ANC has left a rotten legacy in ICT

    ANC has left a rotten legacy in ICT

    By Duncan McLeod6 October 2016
    Twitter LinkedIn Facebook WhatsApp Email Telegram Copy Link
    News Alerts
    WhatsApp

    Duncan-McLeod-180-profileThe publication this week of the deeply problematic national integrated ICT policy white paper is just the latest episode in 22 years of ANC policy making that has left a rotten legacy for the sector.

    The industry has made progress in the past two decades, but it’s happened largely in spite of government, not because of it.

    The problems began soon after the first democratic election, when the state agreed to give Telkom a legislated monopoly of up to six years in return for a commitment to roll out infrastructure in underserviced areas and to ready itself for a competitive market by “rebalancing” its tariffs.

    The impact of that policy was devastating. Although Telkom invested billions in a rural wireless voice network, it rode roughshod over a weak regulator, hiking prices astronomically and failing to rebalance its tariffs fully. The sky-high prices, coupled with the emergence of mobile — which grew beyond everyone’s expectations — meant that the millions of new lines it had rolled out were cut off. Today, South Africa’s fixed-line penetration is worse than it was at the dawn of democracy — and it’s by no means all due to the rise of mobile.

    The late communications minister, Ivy Matsepe-Casaburri, staunchly defended government’s policy of “managed liberalisation”, despite mounting evidence that it was doing little more than protecting the state-controlled Telkom and keeping prices high.

    Her counterpart at public enterprises, Alec Erwin, frustrated at Telkom’s high prices and his colleague’s inaction, hatched a plan to create another state-owned company, Broadband Infraco, in an effort to reduce national wholesale broadband prices. Infraco inherited state-owned fibre assets that had previously been earmarked for Neotel, undermining the latter’s chances of success from the start. Infraco never made a profit, with its impact on prices seen as marginal at best.

    Attempting to address the mess she helped create, Matsepe-Casaburri licensed Sentech — another state-owned enterprise — to provide wireless Internet. Sentech proved to be incapable of the task of running a retail consumer-facing business, and it failed.

    It was only when Altech challenged Matsepe-Casaburri’s dogged defence of managed liberalisation successfully in the courts that the sector began to make significant progress. Suddenly, the market had hundreds of licensees that could build their own networks. The result has been a decade of investment by private-sector players.

    Ivy Matsepe-Casaburri
    Ivy Matsepe-Casaburri

    Wireless Internet service providers and, more recently, fibre-to-the-home broadband companies are helping drive down prices for consumers. Mobile operators can now build their own backhaul links independently of Telkom, in the process helping them reduce costs and spread 3G and 4G/LTE broadband to more South Africans.

    Matsepe-Casaburri doesn’t deserve to shoulder the blame alone. Her successors, from Siphiwe Nyanda to Dina Pule, have crippled South Africa’s digital migration project, threatening investment by mobile operators, keeping broadband prices higher than they should be and robbing consumers of greater choice in television broadcasting.

    It’s the mobile sector that has been most successful over the past 20 years, in spite of the challenges. Mobile operators continue to invest heavily in infrastructure, with the two biggest — MTN and Vodacom — spending more than R20-billion this year alone expanding their networks.

    But continued investment is now threatened by the latest ANC policy folly. The ICT white paper is a populist document that risks undoing all that the sector has achieved in favour of an untested approach that wants to tear up the model that has successfully delivered connectivity to a majority of South Africans.

    That model needs to be tweaked to encourage greater competition and bring down prices, not torn up as if it has failed. In attempting to bring down prices and create a more inclusive sector, the ANC risks destroying it all.  — (c) 2016 NewsCentral Media

    • Duncan McLeod is editor of TechCentral
    • See also: Gov’t playing Russian Roulette with ICT sector
    Follow TechCentral on Google News Add TechCentral as your preferred source on Google


    Alec Erwin Altech Broadband Infraco Craig Venter Dina Pule Duncan McLeod Ivy Matsepe-Casaburri MTN Sentech Siphiwe Nyanda Siyabonga Cwele Telkom Vodacom
    WhatsApp YouTube
    Share. Facebook Twitter LinkedIn WhatsApp Telegram Email Copy Link
    Previous ArticleZuma wants Gupta probe deferred
    Next Article Hlaudi: ‘SABC must decide if I stay or go’

    Related Posts

    Treasury grants Sentech R700-million special allocation

    Treasury grants Sentech R700-million special allocation

    25 February 2026
    The real reason MTN is bringing its towers back in-house

    The real reason MTN is bringing its towers back in-house

    22 February 2026
    MTN to buy back its own towers in R35-billion deal - Ralph Mupita

    MTN to buy back its own cellular towers in R35-billion deal

    17 February 2026
    Company News
    Netstar and Sunshine Tour team up on data-driven golf analytics

    Netstar and Sunshine Tour team up on data-driven golf analytics

    24 February 2026
    Vox customers set to benefit from direct, optimised Google connectivity

    Vox customers set to benefit from direct, optimised Google connectivity

    24 February 2026
    The human side of AI - Altron Digital Business

    The human side of AI

    23 February 2026
    Opinion
    The AI fraud crisis your bank is not ready for - Andries Maritz

    The AI fraud crisis your bank is not ready for

    18 February 2026
    A million reasons monopolies don't work - Duncan McLeod

    A million reasons monopolies don’t work

    10 February 2026
    The author, Business Leadership South Africa CEO Busi Mavuso

    Eskom unbundling U-turn threatens to undo hard-won electricity gains

    9 February 2026

    Subscribe to Updates

    Get the best South African technology news and analysis delivered to your e-mail inbox every morning.

    Latest Posts
    Blu Label bets big on energy as it pivots beyond prepaid distribution - Mark Levy

    Blu Label bets big on energy as it pivots beyond prepaid distribution

    25 February 2026
    Dennis Venter resigns as iOCO co-CEO

    Dennis Venter resigns as iOCO co-CEO

    25 February 2026
    Treasury moves to bring crypto under exchange-control rules

    Treasury moves to bring crypto under exchange-control rules

    25 February 2026
    Treasury grants Sentech R700-million special allocation

    Treasury grants Sentech R700-million special allocation

    25 February 2026
    © 2009 - 2026 NewsCentral Media
    • Cookie policy (ZA)
    • TechCentral – privacy and Popia

    Type above and press Enter to search. Press Esc to cancel.

    Manage consent

    TechCentral uses cookies to enhance its offerings. Consenting to these technologies allows us to serve you better. Not consenting or withdrawing consent may adversely affect certain features and functions of the website.

    Functional Always active
    The technical storage or access is strictly necessary for the legitimate purpose of enabling the use of a specific service explicitly requested by the subscriber or user, or for the sole purpose of carrying out the transmission of a communication over an electronic communications network.
    Preferences
    The technical storage or access is necessary for the legitimate purpose of storing preferences that are not requested by the subscriber or user.
    Statistics
    The technical storage or access that is used exclusively for statistical purposes. The technical storage or access that is used exclusively for anonymous statistical purposes. Without a subpoena, voluntary compliance on the part of your Internet Service Provider, or additional records from a third party, information stored or retrieved for this purpose alone cannot usually be used to identify you.
    Marketing
    The technical storage or access is required to create user profiles to send advertising, or to track the user on a website or across several websites for similar marketing purposes.
    • Manage options
    • Manage services
    • Manage {vendor_count} vendors
    • Read more about these purposes
    View preferences
    • {title}
    • {title}
    • {title}