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
      Mythos forces South African banks onto high alert - Graham Lee

      Mythos forces South African banks onto high alert

      23 April 2026
      Free calls, dead voice and Shameel Joosub's Spanish ghost

      Free calls, dead voice and Shameel Joosub’s Spanish ghost

      22 April 2026
      Capitec CEO Graham Lee

      Capitec blows up MVNO pricing with free on-net calls

      22 April 2026
      Eskom developing bitcoin mining plan but needs Nersa's nod - Agnes Mlambo

      Eskom developing bitcoin mining plan but needs Nersa’s nod

      22 April 2026
      Capitec bets big on AI - and keeps hiring

      Capitec bets big on AI – and keeps hiring

      22 April 2026
    • World
      More organic compounds detected on Mars - Nasa Curiosity rover

      More organic compounds detected on Mars

      21 April 2026
      Adobe bets on AI agents to fend off cheaper rivals

      Adobe bets on AI agents to fend off cheaper rivals

      16 April 2026
      Google poised to lose ad crown to Meta

      Google poised to lose ad crown to Meta

      14 April 2026
      Grand Theft Data - hackers hit Rockstar Games - Grand Theft Auto

      Grand Theft Data – hackers hit Rockstar Games

      14 April 2026
      UK PM Keir Starmer declares war on doomscrolling

      UK PM Keir Starmer declares war on doomscrolling

      13 April 2026
    • In-depth
      Africa switches on as Europe dims the lights

      Africa switches on as Europe dims the lights

      9 April 2026
      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
    • TCS

      TCS+ | ‘The ISP for ISPs’: Vox’s shift to wholesale aggregator

      20 April 2026
      TCS | Werner Lindemann on how AI is rewriting the infosec rulebook

      TCS | Werner Lindemann on how AI is rewriting the infosec rulebook

      15 April 2026
      TCS | Donovan Marsh on AI and the future of filmmaking

      TCS | Donovan Marsh on AI and the future of filmmaking

      7 April 2026
      TCS+ | Vodacom Business moves to crack the SME tech gap - Andrew Fulton, Sannesh Beharie

      TCS+ | Vodacom Business moves to crack the SME tech gap

      7 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
    • 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
      R230-million in the bag for Endeavor's third Harvest Fund - 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 » 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
    Follow TechCentral on Google News Add TechCentral as your preferred source on Google


    Paul Colmer Wapa
    WhatsApp YouTube
    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

    Vox bets on hybrid connectivity

    Vox bets on hybrid connectivity

    14 April 2026
    South Africa's dynamic spectrum breakthrough - Paul Colmer

    South Africa’s dynamic spectrum breakthrough

    20 February 2026
    Major boost for Starlink

    Starlink hype vs reality in South Africa

    26 January 2026
    Company News
    How AnyDesk is redefining remote access for African enterprises

    How AnyDesk is redefining remote access for African enterprises

    22 April 2026
    Centracom's Pindrop takes the pain out of wholesale fibre

    Centracom’s Pindrop takes the pain out of wholesale fibre

    22 April 2026
    Conversational AI is rewriting the customer service playbook - CallMiner

    Conversational AI is rewriting the customer service playbook

    22 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
    Mythos forces South African banks onto high alert - Graham Lee

    Mythos forces South African banks onto high alert

    23 April 2026
    Free calls, dead voice and Shameel Joosub's Spanish ghost

    Free calls, dead voice and Shameel Joosub’s Spanish ghost

    22 April 2026
    Capitec CEO Graham Lee

    Capitec blows up MVNO pricing with free on-net calls

    22 April 2026
    Eskom developing bitcoin mining plan but needs Nersa's nod - Agnes Mlambo

    Eskom developing bitcoin mining plan but needs Nersa’s nod

    22 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}