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
      Starlink wait set to drag on as Icasa flags legal hurdle

      Starlink wait set to drag on as Icasa flags legal hurdle

      13 May 2026
      Malatsi opens door to 'some' partial privatisations of SOEs - communications minister Solly Malatsi

      Malatsi opens door to ‘some’ partial privatisations of SOEs

      13 May 2026
      Sam Altman denies betraying Elon Musk. Shelby Tauber/Reuters

      Sam Altman denies betraying Elon Musk

      13 May 2026
      Naked Insurance launches native app in ChatGPT - Alex Thomson

      Naked Insurance launches native app in ChatGPT

      13 May 2026
      Canal+ firms up 3 June JSE listing

      Canal+ firms up 3 June JSE listing

      13 May 2026
    • World
      Pop star sues Samsung for $15-million - Dua Lipa

      Pop star sues Samsung for $15-million

      11 May 2026
      OpenAI's new audio APIs aim for conversational voice agents

      OpenAI’s new audio APIs aim for conversational voice agents

      8 May 2026
      'It was my idea': Musk claims paternity of OpenAI - Elon Musk

      ‘It was my idea’: Musk claims paternity of OpenAI

      29 April 2026
      Pivotal week for US tech stocks

      Pivotal week for US tech stocks

      28 April 2026
      Sam Altman denies betraying Elon Musk. Shelby Tauber/Reuters

      Worries over OpenAI’s growth as Anthropic gains ground

      28 April 2026
    • In-depth
      Alfa's electric rebel - Alfa Romeo Junior Elettrica Veloce

      Alfa’s electric rebel

      29 April 2026
      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
      Datatec is firing on all cylinders - 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
    • TCS
      TCS+ | The Up&Up Group on the hidden cost of AI - Jason Harrison

      TCS+ | The Up&Up Group on the hidden cost of AI

      13 May 2026
      Michael Rossouw

      TCS+ | The retirement decision most South Africans get wrong

      6 May 2026
      TCS | The Cape Town start-up listening for TB with AI - Braden van Breda

      TCS | The Cape Town start-up listening for TB with AI

      4 May 2026

      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
    • Opinion
      Free calls, dead voice and Shameel Joosub's Spanish ghost - Duncan McLeod

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

      22 April 2026
      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
      Free calls, dead voice and Shameel Joosub's Spanish ghost - 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
    • Company Hubs
      • 1Stream
      • Africa Data Centres
      • AfriGIS
      • Altron Digital Business
      • Altron Document Solutions
      • Altron Group
      • Arctic Wolf
      • Ascent Technology
      • AvertITD
      • BBD
      • Braintree
      • CallMiner
      • CambriLearn
      • 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
      • 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 » Duncan McLeod » Don’t do it, Sentech

    Don’t do it, Sentech

    By Editor13 October 2010
    Twitter LinkedIn Facebook WhatsApp Email Telegram Copy Link
    News Alerts
    WhatsApp

    [By Duncan McLeod]

    State-owned Sentech is reviving plans to build a national broadband network. It wants a second chance and is promising to do things differently this time. However, as much as Sentech’s heart is in the right place, government must not allow it.

    The newly appointed chairman of Sentech, Quraysh Patel, is a breath of fresh air in a stale state-owned enterprise. The energetic businessman, installed by communications minister Siphiwe Nyanda to help turn around the troubled company, isn’t afraid to call a spade a spade.

    In a lengthy interview last week, Patel told me in detail about the problems afflicting the company, the stupid decisions it’s made in recent years, and what needs to be done to rescue it.

    The picture Patel painted was one of a company adrift. He told me he’d uncovered evidence of gross incompetence by the former management team and even pointed to alleged graft committed by former top managers. He told me how the new board was trying to clean up the mess by getting its clients to pay on time and tightening up financial controls, among other things.

    A new CEO should be appointed by the end of the month and Patel has promised that Sentech will get out of businesses that don’t make financial sense.

    Patel tells a convincing story. He comes across as exactly the sort of chairman Sentech needs to pull itself back from the brink. The jury’s still out, but I’d put money on Patel getting the job done.

    But I have a concern. And it’s one that should have taxpayers worried, too. Under Patel’s chairmanship, Sentech is reviving plans to build a national broadband wireless network.

    Many Internet users will remember the company’s abortive previous attempt to build such a network, and will shudder at the prospect of its trying again.

    The late Ivy Matsepe-Casaburri, as communications minister, had given Sentech two valuable licences in a poorly planned attempt to establish it as a rival to Telkom. But Sentech chose the wrong technology, was hopelessly ill-prepared to deal with retail consumers, and, frankly, didn’t have the management talent needed to pull it off. It was a failure that cost taxpayers more than R500m.

    Patel says Sentech won’t repeat the same mistakes. Instead of trying to offer services directly to consumers, it will build a wireless access network and sell services on it to metropolitan and town councils, government departments and provincial governments.

    Sentech wants to spend R2bn on the new network but has promised not to go to cap in hand to central government for funding — apart from the R500m (plus R80m in interest) it has already received from national treasury. Patel wants town councils and provincial governments to help fund the rest.

    When Sentech received its lucrative telecom licences, it had all the opportunities in the world. Back then — in the early 2000s — Telkom still dominated the landscape, and the mobile operators were only beginning to think about building third-generation networks.

    The market has changed dramatically since then. A full-scale war is brewing between Telkom, Vodacom, MTN and Cell C. It’s going to get ugly.

    Patel says Sentech will build a wholesale network only, but a state-owned enterprise that is ill-equipped to cope in a wildly competitive environment will struggle. The company could end up being trampled. Again.

    With the big, private operators viewing rural broadband as an area of growth, Sentech’s goal of extending connectivity to remote places could soon happen anyway.

    Sentech failed once in much easier market conditions. Giving it another chance in a cutthroat environment would be a mistake.

    • Duncan McLeod is editor of TechCentral; this column is also published in Financial Mail
    • Subscribe to our free daily newsletter
    • Follow us on Twitter or on Facebook
    Follow TechCentral on Google News Add TechCentral as your preferred source on Google


    Cell C Duncan McLeod Ivy Matsepe-Casaburri MTN Quraysh Patel Sentech Siphiwe Nyanda Telkom Vodacom
    WhatsApp YouTube
    Share. Facebook Twitter LinkedIn WhatsApp Telegram Email Copy Link
    Previous ArticleHeita! Telkom gets ‘081’ number range
    Next Article Microsoft’s Nyati named to Blue Label board

    Related Posts

    MTN's African engines fire - but South Africa still stalled

    MTN’s African engines fire – but South Africa still stalled

    12 May 2026
    Joosub warns of 24 months of pain for phone buyers

    Joosub warns of 24 months of pain for phone buyers

    12 May 2026
    Voice going the way of SMS, says Vodacom CEO Shameel Joosub

    Voice is going the way of SMS, says Vodacom CEO

    11 May 2026
    Company News
    In crypto, trust is the new currency - Binance South Africa's Sam Mkhize

    In crypto, trust is the new currency

    13 May 2026
    Don't miss the Telviva Tech Insights webinar

    Don’t miss the Telviva Tech Insights webinar

    13 May 2026

    Don’t miss the Pan African DataCentres Exhibition & Conference

    13 May 2026
    Opinion
    Free calls, dead voice and Shameel Joosub's Spanish ghost - Duncan McLeod

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

    22 April 2026
    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

    Subscribe to Updates

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

    Latest Posts
    Starlink wait set to drag on as Icasa flags legal hurdle

    Starlink wait set to drag on as Icasa flags legal hurdle

    13 May 2026
    Malatsi opens door to 'some' partial privatisations of SOEs - communications minister Solly Malatsi

    Malatsi opens door to ‘some’ partial privatisations of SOEs

    13 May 2026
    Sam Altman denies betraying Elon Musk. Shelby Tauber/Reuters

    Sam Altman denies betraying Elon Musk

    13 May 2026
    Naked Insurance launches native app in ChatGPT - Alex Thomson

    Naked Insurance launches native app in ChatGPT

    13 May 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}