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
      Fewer stores, more Bash: TFG's online pivot gathers pace

      Fewer stores, more Bash: TFG’s online pivot gathers pace

      6 November 2026
      Tesla pulls the plug on the Cybertruck

      Tesla pulls the plug on the Cybertruck

      6 November 2026
      AA boss gives South Africa's car industry five years - Bobby Ramagwede

      AA boss gives South Africa’s car industry five years

      6 November 2026
      AI's black box may not be so black after all

      AI’s black box may not be so black after all

      6 November 2026
      Big wind farms drive a surge in private power registrations

      Big wind farms drive a surge in private power registrations

      6 November 2026
    • World
      John Ternus faces first big test as Apple CEO - John Ternus

      John Ternus faces first big test as Apple CEO

      2 November 2026
      Alleged Israeli spy company heavily targeted Starlink users

      How online ads were used to hunt Starlink users

      28 October 2026
      Anthropic's IPO stands alone

      Anthropic’s IPO stands alone

      23 October 2026
      PHP flaws trigger global scramble as hackers pounce

      PHP flaws trigger global scramble as hackers pounce

      22 October 2026
      OpenAI turns the tables on Apple in trade secrets fight

      OpenAI turns the tables on Apple in trade secrets fight

      15 October 2026
    • In-depth
      Ducking hell: inside Apple's hidden list of words the iPhone won't suggest

      Ducking hell: inside Apple’s hidden list of words the iPhone won’t suggest

      6 November 2026
      Why investors are souring on Netflix

      Why investors are souring on Netflix

      22 October 2026

      10 days that changed the course of AI

      21 September 2026
      Meta to the AI industry: slow down without us - Mark Zuckerberg

      Meta to the AI industry: slow down without us

      16 September 2026
      Google DeepMind CEO Demis Hassabis. Image: John Sears

      The plan to stop AI from breaking the world

      16 July 2026
    • TCS
      TCS+ | Old Mutual's Celiwe Ross on leading people through AI - Old Mutual

      TCS+ | Old Mutual’s Celiwe Ross on leading people through AI

      6 November 2026
      TCS+ | How the Apple ecosystem drives productivity for SMEs - Sudesh Pillay iStore and Kevin McLennan

      TCS+ | How the Apple ecosystem drives productivity for SMEs

      6 November 2026
      TCS+ | Vox on AI, data rules and omnichannel communication for SMEs

      TCS+ | Vox on AI, data rules and omnichannel communication for SMEs

      26 October 2026
      TCS | The Cape Town firm quietly connecting Eskom, Pep and 6 000 ATMs - Réan van Niekerk, Metacom

      TCS | The Cape Town firm quietly connecting Eskom, Pep and 6 000 ATMs

      23 October 2026
      TCS+ | Boards are underestimating the cost of a cyberattack, says Arctic Wolf - Jason Oehley and Andre Den Hond

      TCS+ | Boards are underestimating the cost of a cyberattack, says Arctic Wolf

      22 October 2026
    • Opinion
      Icasa's Sim rules need a privacy backstop - Lloyd Matthew and Heinz Vollmer

      Icasa’s Sim rules need a privacy backstop

      5 November 2026
      AI's boardroom honeymoon is over - Gary Stocks

      AI’s boardroom honeymoon is over

      22 October 2026
      Before South Africa licenses Starlink, it should look at Ukraine - Duncan McLeod

      Before South Africa licenses Starlink, it should look at Ukraine

      21 October 2026
      Nonkqubela Thathakahle Jordan-Dyani

      Why cybersecurity is now a national security issue for South Africa

      15 October 2026
      When a machine can choose, who does it become? Fanie van Rooyen

      When a machine can choose, who does it become?

      9 October 2026
    • Company News
      • 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
      • Publishared
      • 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
      • Fintech and payments
      • 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 » Alison Gillwald » Digital equality: South Africa still has a long way to go

    Digital equality: South Africa still has a long way to go

    By Alison Gillwald7 March 2020
    Twitter LinkedIn Facebook WhatsApp Email Telegram Copy Link
    Get breaking news on WhatsApp

    The author, Alison Gillwald, says free “lifeline” data won’t reduce digital inequality

    In Cyril Ramaphosa’s state of the nation address earlier this month, the president highlighted the fact that the Competition Commission had instructed mobile operators to adjust their pricing in a bid to reduce digital inequality in the country. He referred positively to interventions aimed at mitigating inequality.

    These are likely to have mixed outcomes.

    The commission’s decision to force mobile operators to remove the “poverty premium” on low-denomination, prepaid mobile bundles has been widely welcomed as something the telecommunications regulator should have done years ago.

    A large number of the beneficiaries of the lifeline service who are capable of paying for the service will get the welfare benefit

    The “poverty premium” refers to the fact that poor people pay more than wealthier people for data. This happens in two ways. Firstly, prepaid data in South Africa costs way more than post-paid or contract data per megabyte. Logically, the price for it should be lower because it’s being paid up front, but it isn’t. Secondly, the price of low-volume, small-value bundles, typically purchased by poor people, compared with the high-volume packages, usually purchased by wealthier users, are highly discounted.

    Even if this may, arguably, inhibit the kind of product innovation that brought people online by offering micro-products, the intervention in the market is warranted on public interest grounds. And it is likely to have the intended outcome of making data more affordable for the poor.

    The president also referred to the free “lifeline” data package — a certain amount of data daily at no cost, proposed by the commission. The premise for this is much like the free basic water policy in the country which gives household 6 000l before charges kick in.

    ‘Free data for all’

    The “lifeline” package was hailed on public talk shows as “free data for all”.

    But adopting this in the far more complex telecoms infrastructure market is likely to produce some unintended consequences. In particular, it won’t reduce digital inequality. In practice the “free” lifeline data package will be given to everyone with a prepaid Sim card (85% of the data market) as the administrative costs of identifying the needy to provide the subsidy to is too high.

    This will produce a classical free-rider problem. A large number of the beneficiaries of the lifeline service who are capable of paying for the service will get the welfare benefit.

    There is also considerable evidence that the costs of mandatory user subsidies are transferred to end users’ prices. Levies like this are not paid from operator surpluses. Instead, they are built into the cost of services. Unless tightly monitored and regulated, this in turn drives up the price of services for users.

    From a public interest policy perspective, cross-subsidisation is justifiable if the subsidy and cost allocation is transparent. And if the increased cost being paid by those online, for example, is used to subsidise the extension of networks or services to get the rest of the population online. This is what happened in classical universal service regulation to get networks extended into remote areas.

    But the lifeline subsidy does not bring more people online. It subsidises the cost of data for those who are already online — rich and poor. The lifeline subsidy may enable those who are already connected through smart devices to use data more optimally to enjoy the benefits of being connected, such as financial inclusion, information gathering and job-seeking, but it does not assist with bringing the 50% of South Africans who are offline, online.

    There are alternative ways of subsidising data and bringing people online. One example is providing free public Wi-Fi at all public buildings

    The commission focused on the negative impact of data prices on consumers. And there is certainly evidence that price affects usage — in South Africa usage is way below the average in similar-sized economies with less inequitable income distribution.

    In the Research ICT Africa After Access 2018 survey of 10 African countries, including South Africa, non-users said that the price of smart devices was at primary reason for people not being connected. For those that were connected the cost of data was identified as the reason for their sub-optimal use.

    This shows that reducing data prices without attending to the cost of the devices (and other problems once people are connected, such as the lack of digital literacy) does not redress digital inequality.

    Mirrored online

    There are other reasons, too. Analysis of the 2018 survey shows that access and use of the Internet, across all countries, including South Africa, is determined by education and the corollary indicator of income. The survey showed that education, income and locational inequalities are simply being mirrored online — arguably amplified — as the economic and social value of being digitally networked increases exponentially.

    There are alternative ways of subsidising data and bringing people online. One example is providing free public Wi-Fi at all public buildings. This would enable those who were unable to pay for airtime to go online by accessing a public Wi-Fi point. This was proposed in the South African broadband plan, SA Connect, but was never implemented in the manner and scale intended.

    With successful Wi-Fi initiatives at city level, price-sensitive users are increasingly supplementing the purchases of their low-denomination bundles with public Wi-Fi. In the 2018 After Access survey, in South Africa 32% of Internet users indicated that they used public Wi-Fi at least once a month.

    Policy needs to address the underlying human development challenges if people are to be equitably brought online

    Of course, those who could afford data services would also be able to access the free Wi-Fi. But they wouldn’t get in automatically. They would need to make the effort of getting to a free public access point, which price-sensitive users do.

    Another option is zero-rating public interest services. “Zero-rating” is when no price is charged for the data used to access and use an application or website. This is proposed by the commission for government, educational and other public interest websites.

    But this is sub-optimal. Ideally, zero rating such sites should be in addition to some free public Wi-Fi. The poor should also be afforded choice and the benefits of access to the open Internet.

    Policy needs to address the underlying human development challenges if people are to be equitably brought online as well as enabled to shift from meagre passive consumption, to transaction-cost-reducing online activities, and even to enhancing their well-being and livelihoods.

    Policies that don’t address these challenges will simply perpetuate existing inequalities.The Conversation

    • Written by Alison Gillwald, adjunct professor, Nelson Mandela School of Public Governance, University of Cape Town
    • This article is republished from The Conversation under a Creative Commons licence
    Add TechCentral as a preferred source on GoogleFollow TechCentral on Google NewsGet breaking news on WhatsApp


    Alison Gillwald Competition Commission Cyril Ramaphosa top
    WhatsApp YouTube
    Share. Facebook Twitter LinkedIn WhatsApp Telegram Email Copy Link
    Previous ArticleTech festival SXSW is cancelled
    Next Article Coronavirus: Second South African case confirmed

    Related Posts

    Telcos push for 20-Sim cap and accuse Icasa of overreach - ACT CEO Nomvuyiso Batyi

    Telcos push for 20-Sim cap and accuse Icasa of overreach

    3 November 2026
    Treasury puts R150-million behind MyMzansi government app - Enoch Godongwana

    Treasury puts R150-million behind MyMzansi government app

    21 October 2026
    A software revolution is heading for South African driveways

    A software revolution is heading for South African driveways

    19 October 2026
    Company News
    XLink brings dual-network resilience to eSim

    XLink brings dual-network resilience to eSim

    6 November 2026
    CambriLearn parents can now ask AI whether their child went to class

    CambriLearn parents can now ask AI whether their child went to class

    6 November 2026
    'There was hunger for alternatives': PSET launches at Purcon 2026 - Ebenezer Smith

    ‘There was hunger for alternatives’: PSET launches at Purcon 2026

    6 November 2026
    Opinion
    Icasa's Sim rules need a privacy backstop - Lloyd Matthew and Heinz Vollmer

    Icasa’s Sim rules need a privacy backstop

    5 November 2026
    AI's boardroom honeymoon is over - Gary Stocks

    AI’s boardroom honeymoon is over

    22 October 2026
    Before South Africa licenses Starlink, it should look at Ukraine - Duncan McLeod

    Before South Africa licenses Starlink, it should look at Ukraine

    21 October 2026

    Subscribe to Updates

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

    Latest Posts
    Fewer stores, more Bash: TFG's online pivot gathers pace

    Fewer stores, more Bash: TFG’s online pivot gathers pace

    6 November 2026
    Tesla pulls the plug on the Cybertruck

    Tesla pulls the plug on the Cybertruck

    6 November 2026
    AA boss gives South Africa's car industry five years - Bobby Ramagwede

    AA boss gives South Africa’s car industry five years

    6 November 2026
    AI's black box may not be so black after all

    AI’s black box may not be so black after all

    6 November 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}
    🇿🇦 Sign up to the TechCentral newsletter