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 » News » Data must fall? Not so fast, says FMF

    Data must fall? Not so fast, says FMF

    By Duncan McLeod15 November 2016
    Twitter LinkedIn Facebook WhatsApp Email Telegram Copy Link
    News Alerts
    WhatsApp
    leon-louw-640
    Leon Louw

    The Free Market Foundation has said the #datamustfall movement, which is agitating for lower mobile data prices, has largely gone unchallenged. Yet evidence suggests that South African data prices are not among the highest in the world, and the debate needs to be less one-sided.

    Leon Louw, the foundation’s executive director and co-founder, said at a media conference in Johannesburg on Tuesday that “gullible experts” appear to have swallowed the hyperbole around #datamustfall and that there’s been a lack of “tough questions” asked about whether what’s being said about data prices stands up to scrutiny.

    Using the building sector as an analogy, Louw said if poor people can’t afford housing, there isn’t a demand that building contractors reduce their prices to unsustainable levels. “With data, there are arguments that arise in no other context, and these have become widely accepted as legitimate and credible.”

    Louw warned against “counterproductive intervention” in a functioning market, saying that if government were to force data prices to fall, it could have unintended consequences. “What happens to the poor who don’t already have coverage? Will villages have access to anything better than 2G? Will they get 3G and 4G? If you are worried about the poor, you want technology and coverage to reach them, but if you force data prices down, you will create a disincentive to rolling out infrastructure.”

    Louw said there is “no such thing as a free lunch” and rubbished claims by #datamustfall campaigners that Internet access is a human right. Also, freedom of speech does not mean that users have a right to be provided with free access to the Internet or technology more broadly, he said.

    In addition, Louw took aim at those who claim South African operators make excess profits. “It does seem that South African service providers have higher than average profits when compared to those in the rest of Africa, but they’re not higher than in many other countries.”

    He said operators in many other markets have faced criticism that they’re making “super profits”. But “if they are subject to competition, and they still make lots of money, that’s an indication of the extent to which they have served their customers well”.

    Louw also slammed those who have suggested that data prices — high or not – are a sign that there has been “market failure”.

    “Let’s be clear about this: there is no such a thing as market failure. Markets don’t have objectives. Markets are a process. The market is not something with a mind or an objective,” he said. “The market is simply people freely trading with one another. If the market produces soap operas or reality TV, I can’t call that market failure. It’s the market successfully giving people what they want.”

    If anyone should be criticised over high prices, Louw said, it’s the government, which has been tardy in allocating access to additional radio frequency spectrum to the operators.

    “The result is that the network providers have to spend extra sums of money building extra base stations which they otherwise wouldn’t have to do. They are ‘re-farming’, moving 2G [spectrum] to 4G. They have to do that because the government has denied them spectrum.”

    Making direct and selective comparisons with data prices in other countries is also not helpful, Louw said. Each country has its own challenges, which affects how much data costs. For example, some countries haven’t rolled out 4G yet. “What are the licensing costs? What is the regulatory cost? Anyone who produces a simplistic number for one country over another is misleading you. It’s not that simple.”

    Data produced the International Telecommunication Union suggests that data prices in South Africa are average compared to the rest of the world — far from being the most expensive, but also far from being the cheapest. Any analysis should take into consideration a wide range of factors that can and do influence how the operators set their prices.

    On spectrum allocation, Louw said he favours an auction and said communications regulator Icasa was on the right track in this regard. (He emphasised that he was speaking in his personal capacity on this point.)

    Government wants to reserve all unallocated mobile spectrum for a new open-access wholesale network into which all the operators are expected to contribute. “My personal view is that what Icasa wants, which is an auction, is the most efficient way of allocating a scarce resource.”  — © 2016 NewsCentral Media



    Free Market Foundation Icasa ITU Leon Louw
    Subscribe to TechCentral Subscribe to TechCentral
    Share. Facebook Twitter LinkedIn WhatsApp Telegram Email Copy Link
    Previous ArticleSABC hearing to kick off in parliament
    Next Article FreeMe a huge success for Telkom

    Related Posts

    South Africa set for telecoms licensing reset - Icasa

    South Africa set for telecoms licensing reset

    28 November 2025
    Four years later, Vodacom and Maziv have sealed their deal

    Four years later, Vodacom and Maziv have sealed their deal

    26 November 2025
    Vodacom's Maziv deal is still not done

    Vodacom’s Maziv deal is still not done

    10 November 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}