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
      Gaping holes in South African government cyber defences

      Gaping holes in South African government cyber defences

      2 April 2026
      EV charging start-up Charge bypasses JSE for token-based raise - Joubert Roux

      EV charging start-up Charge bypasses JSE for token-based raise

      2 April 2026
      Ring, reject, repeat: South Africa's spam call crisis

      Ring, reject, repeat: South Africa’s spam call crisis

      2 April 2026
      Four astronauts begin humanity's return to the moon - Artemis II

      Four astronauts begin humanity’s return to the moon

      2 April 2026
      Sars to give every taxpayer a digital identity in sweeping tech overhaul

      Sars to give every taxpayer a digital identity in sweeping tech overhaul

      1 April 2026
    • World
      Amazon in talks to buy satellite operator Globalstar

      Amazon in talks to buy satellite operator Globalstar

      2 April 2026

      Apple plans to open Siri to rival AI services

      27 March 2026
      It's official: ads are coming to ChatGPT

      It’s official: ads are coming to ChatGPT

      23 March 2026
      Mystery Chinese AI model revealed to be Xiaomi's

      Mystery Chinese AI model revealed to be Xiaomi’s

      19 March 2026
      A mystery AI model has developers buzzing

      A mystery AI model has developers buzzing

      18 March 2026
    • In-depth
      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
      How liberalisation is rewiring South Africa's power sector

      How liberalisation is rewiring South Africa’s power sector

      21 January 2026
      The top-performing South African tech shares of 2025

      The top-performing South African tech shares of 2025

      12 January 2026
    • TCS
      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
      Anoosh Rooplal

      TCS | Anoosh Rooplal on the Post Office’s last stand

      27 March 2026
      Meet the CIO | HealthBridge CTO Anton Fatti on the future of digital health

      Meet the CIO | Healthbridge CTO Anton Fatti on the future of digital health

      23 March 2026
      TCS+ | Arctic Wolf unpacks the evolving threat landscape for SA businesses - Clare Loveridge and Jason Oehley

      TCS+ | Arctic Wolf unpacks the evolving threat landscape for SA businesses

      19 March 2026
      TCS+ | Vox Kiwi: a wireless solution promising a fibre-like experience - Theo van Zyl

      TCS+ | Vox Kiwi: a wireless solution promising a fibre-like experience

      13 March 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
      VC's centre of gravity is shifting - and South Africa is in the frame - 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 » News » Fixed line needs fixing

    Fixed line needs fixing

    By Craig Wilson29 July 2013
    Twitter LinkedIn Facebook WhatsApp Email Telegram Copy Link
    News Alerts
    WhatsApp

    broadband-640

    Mobile broadband is the primary way South Africans get online because of affordability and speed, but the comparative “instability” of mobile offerings next to fixed lines could harm the economy, according to new report by Research ICT Africa.

    Mobile broadband offers “variable performance” when compared to fixed services and, although mobile offerings may be faster, the report says that meeting the need for stable, high-speed connectivity “required for a modern economy and critical public services” remains a “key South African policy challenge”.

    “Poor broadband penetration levels are an outcome of high prices. The high prices and poor quality of ADSL services reflect the absence of competition in this segment of the broadband market, in contrast to the more competitive mobile segment.”

    In South Africa, mobile broadband is cheaper and faster than fixed-line broadband, while the reverse holds true in most developed markets. Worryingly, though, the research has found that mobile broadband is cheaper for contract customers than those on prepaid, meaning connectivity is more expensive for those least able to afford it.

    South Africa performs poorly relative to its neighbours when it comes to the cost of prepaid data — particularly in terms of small quantities thereof — but does far better for larger amounts. Nevertheless, on the whole the cost of mobile data in South Africa has fallen due to stiff competition.

    According to the report, if fixed-line operators want to compete with mobile broadband, they need to invest in the new technologies — such as VDSL and fibre to the home — because these offer levels of reliability and stability that mobile broadband does not.

    Although reductions in mobile termination rates, the wholesale fees operators charge each other to carry calls between their networks, have resulted in the cost of voice calls falling, there is also a decline in demand for voice combined with growing demand for data services.

    Mobile broadband is the most common form of connectivity for those South African households. Of those households with an Internet connection, more than 50% use a mobile phone or 3G modem, while only 22% have ADSL lines.

    “Based on pricing and speed, together with ease of setup and  prepaid charging options, mobile connectivity is more appealing than fixed line, in particular for low data use and uneven consumption.”

    The low penetration rate of fixed-line services in South Africa means operators cannot enjoy the economies of scale those in developed markets do, according to the report. And despite having more fixed-line users than most of its neighbours, South African fixed-line ADSL also remains relatively expensive when compared to other African countries, making mobile even more appealing.

    If operators cannot offer better speeds, users will continue to flock to mobile broadband, despite the variations in service quality it offers when compared to fixed services, the report suggests.

    The major cost drivers behind fixed services in South Africa are local transit costs rather than international bandwidth prices. According to the report, the impact of these prices on the cost of communications requires regulatory assessment.

    “Achieving an enabling policy and regulatory framework conducive to investment, the rationalisation of existing infrastructure and the coordination of infrastructure planning going forward is a key challenge.”

    The report says policy and regulation must be conducive to investment in an open-access national backbone, the rationalisation of existing infrastructure, and coordination and sharing of infrastructure.

    Moreover, it says that because mobile broadband is proving so popular, the Independent Communications Authority of South Africa must ensure spectrum is allocated to operators to provide mobile data services and “to build new revenue streams and grow new value-added services and applications which can further drive demand”.

    “At the same time, Icasa must review the prices of wholesale facilities, terrestrial transmission and [Internet protocol] transit, which make up the underlying cost of end-user prices, to assess how these prices can be controlled while not removing investment incentives.”  — (c) 2013 NewsCentral Media

    Follow TechCentral on Google News Add TechCentral as your preferred source on Google


    Research ICT Africa
    WhatsApp YouTube
    Share. Facebook Twitter LinkedIn WhatsApp Telegram Email Copy Link
    Previous ArticleDA alarm bells over DStv, SABC deal
    Next Article Mobile TV makes case for DMB

    Related Posts

    Estonia's digital ID lesson for South Africa

    Estonia’s digital ID lesson for South Africa

    4 February 2026
    A shift in South Africa's communications landscape - Richard Firth

    Telkom urges Icasa to scrap call termination fees completely

    12 December 2024

    Icasa to hold hearings on cybersecurity

    3 January 2019
    Company News
    Synthesis helps financial enterprises transform with new Gemini Enterprise - Digicloud Africa

    Synthesis helps financial enterprises transform with new Gemini Enterprise

    2 April 2026
    The next churn wave is already in your contact centre conversations - CallMiner

    The next churn wave is already in your contact centre conversations

    2 April 2026
    Mining's problem isn't output, it's execution - Workday

    Mining’s problem isn’t output, it’s execution – Workday

    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

    Subscribe to Updates

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

    Latest Posts
    Gaping holes in South African government cyber defences

    Gaping holes in South African government cyber defences

    2 April 2026
    EV charging start-up Charge bypasses JSE for token-based raise - Joubert Roux

    EV charging start-up Charge bypasses JSE for token-based raise

    2 April 2026
    Ring, reject, repeat: South Africa's spam call crisis

    Ring, reject, repeat: South Africa’s spam call crisis

    2 April 2026
    Amazon in talks to buy satellite operator Globalstar

    Amazon in talks to buy satellite operator Globalstar

    2 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}