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
      Big Microsoft 365 price increases coming next year

      Big Microsoft price increases coming next year

      5 December 2025
      Vodacom to take control of Safaricom in R36-billion deal - Shameel Joosub

      Vodacom to take control of Safaricom in R36-billion deal

      4 December 2025
      Black Friday goes digital in South Africa as online spending surges to record high

      Black Friday goes digital in South Africa as online spending surges to record high

      4 December 2025
      BYD takes direct aim at Toyota with launch of sub-R500 000 Sealion 5 PHEV

      BYD takes direct aim at Toyota with launch of sub-R500 000 Sealion 5 PHEV

      4 December 2025
      'Get it now': Takealot in new instant deliveries pilot

      ‘Get it now’: Takealot in new instant deliveries pilot

      4 December 2025
    • World
      Amazon and Google launch multi-cloud service for faster connectivity

      Amazon and Google launch multi-cloud service for faster connectivity

      1 December 2025
      Google makes final court plea to stop US breakup

      Google makes final court plea to stop US breakup

      21 November 2025
      Bezos unveils monster rocket: New Glenn 9x4 set to dwarf Saturn V

      Bezos unveils monster rocket: New Glenn 9×4 set to dwarf Saturn V

      21 November 2025
      Tech shares turbocharged by Nvidia's stellar earnings

      Tech shares turbocharged by stellar Nvidia earnings

      20 November 2025
      Config file blamed for Cloudflare meltdown that disrupted the web

      Config file blamed for Cloudflare meltdown that disrupted the web

      19 November 2025
    • In-depth
      Jensen Huang Nvidia

      So, will China really win the AI race?

      14 November 2025
      Valve's Linux console takes aim at Microsoft's gaming empire

      Valve’s Linux console takes aim at Microsoft’s gaming empire

      13 November 2025
      iOCO's extraordinary comeback plan - Rhys Summerton

      iOCO’s extraordinary comeback plan

      28 October 2025
      Why smart glasses keep failing - no, it's not the tech - Mark Zuckerberg

      Why smart glasses keep failing – it’s not the tech

      19 October 2025
      BYD to blanket South Africa with megawatt-scale EV charging network - Stella Li

      BYD to blanket South Africa with megawatt-scale EV charging network

      16 October 2025
    • TCS
      TCS+ | How Cloud on Demand helps partners thrive in the AWS ecosystem - Odwa Ndyaluvane and Xenia Rhode

      TCS+ | How Cloud On Demand helps partners thrive in the AWS ecosystem

      4 December 2025
      TCS | MTN Group CEO Ralph Mupita on competition, AI and the future of mobile

      TCS | Ralph Mupita on competition, AI and the future of mobile

      28 November 2025
      TCS | Dominic Cull on fixing South Africa's ICT policy bottlenecks

      TCS | Dominic Cull on fixing South Africa’s ICT policy bottlenecks

      21 November 2025
      TCS | BMW CEO Peter van Binsbergen on the future of South Africa's automotive industry

      TCS | BMW CEO Peter van Binsbergen on the future of South Africa’s automotive industry

      6 November 2025
      TCS | Why Altron is building an AI factory - Bongani Andy Mabaso

      TCS | Why Altron is building an AI factory in Johannesburg

      28 October 2025
    • Opinion
      Your data, your hardware: the DIY AI revolution is coming - Duncan McLeod

      Your data, your hardware: the DIY AI revolution is coming

      20 November 2025
      Zero Carbon Charge founder Joubert Roux

      The energy revolution South Africa can’t afford to miss

      20 November 2025
      It's time for a new approach to government IT spend in South Africa - Richard Firth

      It’s time for a new approach to government IT spend in South Africa

      19 November 2025
      How South Africa's broken Rica system fuels murder and mayhem - Farhad Khan

      How South Africa’s broken Rica system fuels murder and mayhem

      10 November 2025
      South Africa's AI data centre boom risks overloading a fragile grid - Paul Colmer

      South Africa’s AI data centre boom risks overloading a fragile grid

      30 October 2025
    • 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
      • 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 » Paul Colmer » Corrupt municipalities crushing affordable connectivity in South Africa

    Corrupt municipalities crushing affordable connectivity in South Africa

    Connectivity should be driven by market needs rather than manipulated by powerful operators.
    By Paul Colmer4 June 2024
    Twitter LinkedIn Facebook WhatsApp Email Telegram Copy Link
    News Alerts
    WhatsApp

    In South Africa, the deployment of fibre networks is critically dependent on the acquisition of wayleaves, which are permissions granted by municipalities to trench roads and public spaces for infrastructure as well as to provide aerial fibre.

    Unlike a centralised government-issued system, however, these permissions are controlled by individual municipalities, leading to a range of challenges and inconsistencies.

    It’s well known that South African municipalities are grappling with severe financial difficulties. Traditionally, they have relied heavily on revenue from electricity sales. However, with the widespread adoption of solar power by paying customers and frequent load shedding reducing electricity usage, municipalities are now seeking alternative revenue streams. One such stream is the sale of wayleaves to wireless internet service providers (Wisps) and fibre network operators.

    Unfortunately, each municipality has its own pricing and processing system for wayleaves

    Unfortunately, each municipality has its own pricing and processing system for wayleaves. In some areas, the cost of obtaining a wayleave has been pushed so high that laying fibre has become economically unfeasible. This disparity in costs, combined with various bureaucratic processes, creates a significant barrier to uniform connectivity expansion.

    The South African government has expressed a commitment to ensuring that no one is left behind in the drive for universal connectivity. The SAConnect initiative is central to this effort, with many small and medium-sized enterprises receiving grants to connect large rural and regional areas wirelessly and with fibre. These SMEs are at the forefront of connecting underserved regions.

    However, the path forward is fraught with challenges. Wisps need wireless operating licences, town planning and environmental impact studies to approve tower construction. Although logistically manageable if the land is zoned for communications infrastructure, the process is still complex and costly.

    Price wars

    Historically, many Wisps focused on providing wireless services only, but over time they have become open-access partners to large fibre service providers. The industry has seen a shift where customers now expect free installation and routers, intensifying price wars. This has squeezed profit margins to as low as R50 per month per client, making it hard for Wisps to sustain their operations. Consequently, rolling out their own fibre infrastructure has become a more viable option for many SME Wisps.

    To deploy their own fibre, SMEs need to create their own networks, which involves applying for municipal wayleaves. The costs associated with wayleaves can range from around R8 000 to several hundreds of thousands of rand. Some municipalities even require non-refundable deposits of hundreds of thousands of rands, with no guarantee of approval. Additionally, arbitrary fees such as annual maintenance charges further burden SMEs, even though municipalities perform no maintenance once the fibre is laid.

    Read: South Africa’s business fibre market is growing fast

    The situation is exacerbated by the monopolistic practices of large fibre providers. There is anecdotal evidence suggesting that these providers manipulate municipal wayleave processes to their advantage, often with political interference.

    For instance, an SME Wisp that recently applied for an aerial wayleave was refused and was asked for a bank guarantee of R800 000 for a trench-only wayleave; aerial was declined. A large fibre operator entered the municipality and secured their own aerial wayleaves without issues.

    The author, Wapa’s Paul Colmer

    At another municipality, an SME Wisp was rolling out fibre when wayleave acquisition was not an issue, until the big players moved in and all his future wayleaves were declined. Meanwhile, the large players were granted wayleaves for the duration of their fibre roll-out projects.

    Such anticompetitive behaviour undermines SMEs and contradicts the government’s goal of universal connectivity. The lack of a standardised national regulatory framework for wayleaves allows larger operators to dominate the market, sidelining smaller competitors and stifling innovation.

    South Africa’s cellular data coverage is extensive, but the high cost of such data renders it unaffordable for many, especially in rural areas. This has perpetuated the digital divide, leaving a significant portion of the population unconnected.

    Read next: State’s latest free data plan panned

    Easing the regulatory and financial burdens on SME Wisps would enhance their ability to provide affordable wireless and fibre connectivity, benefiting everyone. Connectivity should be driven by market needs rather than manipulated by powerful operators. However, the entrenched corruption, ineffective processes and lack of transparency in municipal dealings ensure that large operators continue to dominate, to the detriment of SMEs and the wider population.

    As South Africa celebrates 30 years of democracy, it is imperative to reform the systems that have perpetuated our digital divide. Addressing these issues would not only promote fair competition but also align with the nation’s vision of inclusive connectivity, truly leaving no one behind.

    • The author, Paul Colmer, is executive committee member at the Wireless Access Provider’s Association, an industry body
    • The views of columnists published on TechCentral are their own and do not necessarily reflect the publication’s views


    Paul Colmer Wapa
    Subscribe to TechCentral Subscribe to TechCentral
    Share. Facebook Twitter LinkedIn WhatsApp Telegram Email Copy Link
    Previous ArticleRand climbs as investors bet on ANC, DA coalition
    Next Article Canal+ bid for DStv is ‘fair and reasonable’

    Related Posts

    South Africa's AI data centre boom risks overloading a fragile grid - Paul Colmer

    South Africa’s AI data centre boom risks overloading a fragile grid

    30 October 2025
    Your Wi-Fi router is about to start watching you

    Your Wi-Fi router is about to start watching you

    21 August 2025
    Starlink risks ceding ground to rivals in South Africa amid licensing battle - Dominic Cull

    Don’t expect Starlink in South Africa anytime soon

    24 June 2025
    Company News
    AI is not a technology problem - iqbusiness

    AI is not a technology problem – iqbusiness

    5 December 2025
    Telcos are sitting on a data gold mine - but few know what do with it - Phillip du Plessis

    Telcos are sitting on a data gold mine – but few know what do with it

    4 December 2025
    Unlock smarter computing with your surface Copilot+ PC

    Unlock smarter computing with your Surface Copilot+ PC

    4 December 2025
    Opinion
    Your data, your hardware: the DIY AI revolution is coming - Duncan McLeod

    Your data, your hardware: the DIY AI revolution is coming

    20 November 2025
    Zero Carbon Charge founder Joubert Roux

    The energy revolution South Africa can’t afford to miss

    20 November 2025
    It's time for a new approach to government IT spend in South Africa - Richard Firth

    It’s time for a new approach to government IT spend in South Africa

    19 November 2025

    Subscribe to Updates

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

    Latest Posts
    Big Microsoft 365 price increases coming next year

    Big Microsoft price increases coming next year

    5 December 2025
    AI is not a technology problem - iqbusiness

    AI is not a technology problem – iqbusiness

    5 December 2025
    Vodacom to take control of Safaricom in R36-billion deal - Shameel Joosub

    Vodacom to take control of Safaricom in R36-billion deal

    4 December 2025
    Black Friday goes digital in South Africa as online spending surges to record high

    Black Friday goes digital in South Africa as online spending surges to record high

    4 December 2025
    © 2009 - 2025 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}