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
      Cabinet approves draft AI policy for public comment

      Cabinet approves draft AI policy for public comment

      6 April 2026
      Icasa data confirms the scale of South Africa's pay-TV collapse

      Icasa data confirms the scale of South Africa’s pay-TV collapse

      6 April 2026
      How AI agents are reshaping banking in South Africa - Lindelani Ramukumba, Absa

      How agentic AI is reshaping banking in South Africa

      5 April 2026
      South Africa's 5G boom is bypassing rural areas: Icasa

      South Africa’s 5G boom is bypassing rural areas: Icasa

      5 April 2026
      WhatsApp is eating South African operators' revenue

      WhatsApp is eating South African operators’ revenue

      4 April 2026
    • World
      DeepSeek V4 to run on Huawei silicon as China builds its own AI stack

      DeepSeek V4 to run on Huawei silicon as China builds its own AI stack

      4 April 2026
      Amazon in talks to buy satellite operator Globalstar

      Amazon in talks to buy satellite operator Globalstar

      2 April 2026

      Apple plans to open Siri to rival AI services

      27 March 2026
      It's official: ads are coming to ChatGPT

      It’s official: ads are coming to ChatGPT

      23 March 2026
      Mystery Chinese AI model revealed to be Xiaomi's

      Mystery Chinese AI model revealed to be Xiaomi’s

      19 March 2026
    • In-depth
      The biggest untapped EV market on Earth is hiding in plain sight

      The biggest untapped EV market on Earth is hiding in plain sight

      1 April 2026
      The R18-billion tech giant hiding in plain sight - Jens Montanana

      The R16-billion tech giant hiding in plain sight

      26 March 2026
      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
    • TCS
      TCS | MTN's Divysh Joshi on the strategy behind Pi - Divyesh Joshi

      TCS | MTN’s Divyesh Joshi on the strategy behind Pi

      1 April 2026
      Anoosh Rooplal

      TCS | Anoosh Rooplal on the Post Office’s last stand

      27 March 2026
      Meet the CIO | HealthBridge CTO Anton Fatti on the future of digital health

      Meet the CIO | Healthbridge CTO Anton Fatti on the future of digital health

      23 March 2026
      TCS+ | Arctic Wolf unpacks the evolving threat landscape for SA businesses - Clare Loveridge and Jason Oehley

      TCS+ | Arctic Wolf unpacks the evolving threat landscape for SA businesses

      19 March 2026
      TCS+ | Vox Kiwi: a wireless solution promising a fibre-like experience - Theo van Zyl

      TCS+ | Vox Kiwi: a wireless solution promising a fibre-like experience

      13 March 2026
    • Opinion
      The conflict of interest at the heart of PayShap's slow adoption - Cheslyn Jacobs

      The conflict of interest at the heart of PayShap’s slow adoption

      26 March 2026
      South Africa's energy future hinges on getting wheeling right - Aishah Gire

      South Africa’s energy future hinges on getting wheeling right

      10 March 2026
      Hold the doom: the case for a South African comeback - Duncan McLeod

      Apple just dropped a bomb on the Windows world

      5 March 2026
      VC's centre of gravity is shifting - and South Africa is in the frame - Alison Collier

      VC’s centre of gravity is shifting – and South Africa is in the frame

      3 March 2026
      Hold the doom: the case for a South African comeback - Duncan McLeod

      Hold the doom: the case for a South African comeback

      26 February 2026
    • Company Hubs
      • 1Stream
      • Africa Data Centres
      • AfriGIS
      • Altron Digital Business
      • Altron Document Solutions
      • Altron Group
      • Arctic Wolf
      • Ascent Technology
      • AvertITD
      • BBD
      • Braintree
      • CallMiner
      • CambriLearn
      • CYBER1 Solutions
      • Digicloud Africa
      • Digimune
      • Domains.co.za
      • ESET
      • Euphoria Telecom
      • HOSTAFRICA
      • Incredible Business
      • iONLINE
      • IQbusiness
      • Iris Network Systems
      • Kaspersky
      • LSD Open
      • Mitel
      • NEC XON
      • Netstar
      • Network Platforms
      • Next DLP
      • Ovations
      • Paracon
      • Paratus
      • Q-KON
      • SevenC
      • SkyWire
      • Solid8 Technologies
      • Telit Cinterion
      • Telviva
      • 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
      • HealthTech
      • Information security
      • Internet and connectivity
      • Internet of Things
      • Investment
      • IT services
      • Lifestyle
      • Motoring
      • Policy and regulation
      • 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

    Ring, reject, repeat: South Africa's spam call crisis

    Ring, reject, repeat: South Africa’s spam call crisis

    2 April 2026
    TCS | MTN's Divysh Joshi on the strategy behind Pi - Divyesh Joshi

    TCS | MTN’s Divyesh Joshi on the strategy behind Pi

    1 April 2026
    Inside MTN's plan to turn its towers into AI hubs

    Inside MTN’s plan to turn its towers into AI hubs

    31 March 2026
    Company News
    Synthesis helps financial enterprises transform with new Gemini Enterprise - Digicloud Africa

    Synthesis helps financial enterprises transform with new Gemini Enterprise

    2 April 2026
    The next churn wave is already in your contact centre conversations - CallMiner

    The next churn wave is already in your contact centre conversations

    2 April 2026
    Mining's problem isn't output, it's execution - Workday

    Mining’s problem isn’t output, it’s execution – Workday

    1 April 2026
    Opinion
    The conflict of interest at the heart of PayShap's slow adoption - Cheslyn Jacobs

    The conflict of interest at the heart of PayShap’s slow adoption

    26 March 2026
    South Africa's energy future hinges on getting wheeling right - Aishah Gire

    South Africa’s energy future hinges on getting wheeling right

    10 March 2026
    Hold the doom: the case for a South African comeback - Duncan McLeod

    Apple just dropped a bomb on the Windows world

    5 March 2026

    Subscribe to Updates

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

    Latest Posts
    Cabinet approves draft AI policy for public comment

    Cabinet approves draft AI policy for public comment

    6 April 2026
    Icasa data confirms the scale of South Africa's pay-TV collapse

    Icasa data confirms the scale of South Africa’s pay-TV collapse

    6 April 2026
    How AI agents are reshaping banking in South Africa - Lindelani Ramukumba, Absa

    How agentic AI is reshaping banking in South Africa

    5 April 2026
    South Africa's 5G boom is bypassing rural areas: Icasa

    South Africa’s 5G boom is bypassing rural areas: Icasa

    5 April 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}