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

      Hollard client data dumped on the dark web

      18 September 2026
      Vumatel operating profit jumps 57% as the Vodacom deal lands

      Vumatel operating profit jumps 57% as the Vodacom deal lands

      18 September 2026
      SA's two biggest MVNOs, two very different strategies - FNB Connect Capitec Connect

      Capitec and FNB are running the same MVNO playbook

      18 September 2026
      Solar and EVs in South Africa: what the numbers actually say

      Solar and EVs in South Africa: what the numbers actually say

      18 September 2026
      The AI that builds AI has gone from 1% to 26% in five months

      The AI that builds AI has gone from 1% to 26% in five months

      18 September 2026
    • World
      'This is not circular': Jensen Huang defends $3.5-billion MediaTek deal

      ‘This is not circular’: Jensen Huang defends $3.5-billion MediaTek deal

      2 September 2026
      AI-generated music banned from Australian charts

      AI-generated music banned from Australian charts

      26 August 2026
      Traders brace for a R4.5-trillion swing in Nvidia's value

      Traders brace for a R4.5-trillion swing in Nvidia’s value

      25 August 2026
      Russia building its own Starlink - and faster than expected - Vadym Skibitskyi

      Russia building its own Starlink – and faster than expected

      11 August 2026
      Meta AI will now tell parents if their teen is in crisis

      Meta AI will now tell parents if their teen is in crisis

      17 July 2026
    • In-depth
      Google DeepMind CEO Demis Hassabis. Image: John Sears

      The plan to stop AI from breaking the world

      16 July 2026
      The internet has a Strait of Hormuz problem

      The internet has a Strait of Hormuz problem

      15 July 2026
      AI boom sparks rally, frenzy and fear

      AI boom sparks rally, frenzy and fear

      11 June 2026
      Every plug-in hybrid on sale in South Africa, ranked by price - Lamborghini Temerario

      Every plug-in hybrid on sale in South Africa, ranked by price

      7 June 2026
      What Wi-Fi 8 will mean for wireless networks

      What Wi-Fi 8 will mean for wireless networks

      1 June 2026
    • TCS
      TCS | Octotel's Trevor van Zyl on the fibre merger question

      TCS | Octotel’s Trevor van Zyl on the MetroFibre merger question

      16 September 2026
      Meet the CIO | Shoprite's Chris Shortt on what a supermarket becomes

      Meet the CIO | Shoprite’s Chris Shortt on what a supermarket becomes

      9 September 2026
      Rubicon's EV charging network is profitable - and growing fast - Watts & Wheels

      Rubicon’s EV charging network is profitable – and growing fast

      8 September 2026
      Winstone Jordaan on building a national EV charging network

      Winstone Jordaan on building a national EV charging network

      2 September 2026
      Watts & Wheels S1E8: 'Tesla lands in Africa, just not here'

      Watts & Wheels S1E8: ‘Tesla lands in Africa, just not here’

      24 August 2026
    • Opinion
      The end is nigh, and the shares go on sale in October - Duncan McLeod

      The end is nigh, and the shares go on sale in October

      14 September 2026
      The fragile joint in the Capitec machine - Pambos Soteriades

      The R197-billion market the banks can’t reach

      25 August 2026
      South African tech's compounding debt problem - Jannie van Zyl

      Management consulting as we know it is over

      21 August 2026
      South African tech's compounding debt problem - Jannie van Zyl

      The most dangerous customer is the quiet one

      10 August 2026
      South African tech's compounding debt problem - Jannie van Zyl

      South African tech’s compounding debt problem

      29 July 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
      • CM.com
      • Contactable
      • 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
      • Vox
      • 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
      • Policy and regulation
      • Public sector
      • Retail and e-commerce
      • Satellite communications
      • Science
      • SMEs and start-ups
      • Social media
      • Talent and leadership
      • Telecoms
      • Watts & Wheels
    • 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
    Get breaking news on 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
    Add TechCentral as a preferred source on GoogleFollow TechCentral on Google NewsGet breaking news on WhatsApp


    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

    Vumatel operating profit jumps 57% as the Vodacom deal lands

    Vumatel operating profit jumps 57% as the Vodacom deal lands

    18 September 2026
    SA's two biggest MVNOs, two very different strategies - FNB Connect Capitec Connect

    Capitec and FNB are running the same MVNO playbook

    18 September 2026
    Why South Africa is MTN's most complicated market - Ferdi Moolman

    Why South Africa is MTN’s most complicated market

    16 September 2026
    Company News
    Support ended for SQL Server 2016 - and so did the Microsoft subsidy

    Support ended for SQL Server 2016 – and so did the Microsoft subsidy

    18 September 2026
    GovTech turns 20 - and sets out to build South Africa's digital future - GovTech 2026

    GovTech turns 20 and sets out to build South Africa’s digital future

    18 September 2026
    ITA presents LEO satellite solutions for the oil and gas sector - From left, Suzanette Cruz, account manager, sales B2B; Nuno de Oliveira, sales operations analyst, sales; and Andrea Aragão, marketing manager

    ITA presents LEO satellite solutions for the oil and gas sector

    18 September 2026
    Opinion
    The end is nigh, and the shares go on sale in October - Duncan McLeod

    The end is nigh, and the shares go on sale in October

    14 September 2026
    The fragile joint in the Capitec machine - Pambos Soteriades

    The R197-billion market the banks can’t reach

    25 August 2026
    South African tech's compounding debt problem - Jannie van Zyl

    Management consulting as we know it is over

    21 August 2026

    Subscribe to Updates

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

    Latest Posts

    Hollard client data dumped on the dark web

    18 September 2026
    Vumatel operating profit jumps 57% as the Vodacom deal lands

    Vumatel operating profit jumps 57% as the Vodacom deal lands

    18 September 2026
    SA's two biggest MVNOs, two very different strategies - FNB Connect Capitec Connect

    Capitec and FNB are running the same MVNO playbook

    18 September 2026
    Solar and EVs in South Africa: what the numbers actually say

    Solar and EVs in South Africa: what the numbers actually say

    18 September 2026
    © 2009 - 2026 NewsCentral Media
    Built and maintained by Chronon
    • 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}