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
      MultiChoice scraps annual DStv price hikes for 2026 - David Mignot

      MultiChoice scraps annual DStv price hike

      20 February 2026
      What Gen Z really thinks about the tech world it inherited - Tinashe Mazodze

      What Gen Z really thinks about the tech world it inherited

      20 February 2026
      Showmax 'can't continue' in its current form

      Showmax ‘can’t continue’ in its current form

      20 February 2026
      Free Market Foundation slams treasury's proposed gambling tax

      Free Market Foundation slams treasury’s proposed gambling tax

      20 February 2026
      South Africa's dynamic spectrum breakthrough - Paul Colmer

      South Africa’s dynamic spectrum breakthrough

      20 February 2026
    • World
      Prominent Southern African journalist targeted with Predator spyware

      Prominent Southern African journalist targeted with Predator spyware

      18 February 2026
      More drama in Warner Bros tug of war

      More drama in Warner Bros tug of war

      17 February 2026
      Russia bans WhatsApp

      Russia bans WhatsApp

      12 February 2026
      EU regulators take aim at WhatsApp

      EU regulators take aim at WhatsApp

      9 February 2026
      Musk hits brakes on Mars mission

      Musk hits brakes on Mars mission

      9 February 2026
    • In-depth
      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
      Digital authoritarianism grows as African states normalise internet blackouts

      Digital authoritarianism grows as African states normalise internet blackouts

      19 December 2025
      TechCentral's South African Newsmakers of 2025

      TechCentral’s South African Newsmakers of 2025

      18 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
    • TCS
      Watts & Wheels S1E4: 'We drive an electric Uber'

      Watts & Wheels S1E4: ‘We drive an electric Uber’

      10 February 2026
      TCS+ | How Cloud On Demand is helping SA businesses succeed in the cloud - Xhenia Rhode, Dion Kalicharan

      TCS+ | Cloud On Demand and Consnet: inside a real-world AWS partner success story

      30 January 2026
      Watts & Wheels S1E4: 'We drive an electric Uber'

      Watts & Wheels S1E3: ‘BYD’s Corolla Cross challenger’

      30 January 2026
      Watts & Wheels S1E4: 'We drive an electric Uber'

      Watts & Wheels S1E2: ‘China attacks, BMW digs in, Toyota’s sublime supercar’

      23 January 2026

      TCS+ | Why cybersecurity is becoming a competitive advantage for SA businesses

      20 January 2026
    • Opinion
      A million reasons monopolies don't work - Duncan McLeod

      A million reasons monopolies don’t work

      10 February 2026
      The author, Business Leadership South Africa CEO Busi Mavuso

      Eskom unbundling U-turn threatens to undo hard-won electricity gains

      9 February 2026
      South Africa's skills advantage is being overlooked at home - Richard Firth

      South Africa’s skills advantage is being overlooked at home

      29 January 2026
      Why Elon Musk's Starlink is a 'hard no' for me - Songezo Zibi

      Why Elon Musk’s Starlink is a ‘hard no’ for me

      26 January 2026
      A million reasons monopolies don't work - Duncan McLeod

      South Africa’s new fibre broadband battle

      20 January 2026
    • 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
      • Mitel
      • 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 » 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
    Service is everyone's problem now - and that's exactly why the Atlassian Service Collection matters

    Service is everyone’s problem now – why the Atlassian Service Collection matters

    20 February 2026
    Customers have new expectations. Is your CX ready? 1Stream

    Customers have new expectations. Is your CX ready?

    19 February 2026
    South Africa's cybersecurity challenge is not a tool problem - Nicholas Applewhite, Trinexia South Africa

    South Africa’s cybersecurity challenge is not a tool problem

    19 February 2026
    Opinion
    A million reasons monopolies don't work - Duncan McLeod

    A million reasons monopolies don’t work

    10 February 2026
    The author, Business Leadership South Africa CEO Busi Mavuso

    Eskom unbundling U-turn threatens to undo hard-won electricity gains

    9 February 2026
    South Africa's skills advantage is being overlooked at home - Richard Firth

    South Africa’s skills advantage is being overlooked at home

    29 January 2026

    Subscribe to Updates

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

    Latest Posts
    MultiChoice scraps annual DStv price hikes for 2026 - David Mignot

    MultiChoice scraps annual DStv price hike

    20 February 2026
    What Gen Z really thinks about the tech world it inherited - Tinashe Mazodze

    What Gen Z really thinks about the tech world it inherited

    20 February 2026
    Showmax 'can't continue' in its current form

    Showmax ‘can’t continue’ in its current form

    20 February 2026
    Free Market Foundation slams treasury's proposed gambling tax

    Free Market Foundation slams treasury’s proposed gambling tax

    20 February 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}