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
      Wits project pits African creators against AI music's blind spots

      Wits project pits African creators against AI music’s blind spots

      17 April 2026
      Prosus offloads 4.5% of Delivery Hero to Uber for €270-million

      Prosus offloads 4.5% of Delivery Hero to Uber for €270-million

      17 April 2026
      Numsa digs in for 8% as Eskom wage pact splits unions

      Numsa digs in as Eskom wage pact splits unions

      17 April 2026
      Consumers get new weapon against direct marketing spam

      Consumers get new weapon against phone call spam

      16 April 2026
      Standard Bank data breach fallout deepens

      Standard Bank data breach fallout deepens

      16 April 2026
    • World
      Adobe bets on AI agents to fend off cheaper rivals

      Adobe bets on AI agents to fend off cheaper rivals

      16 April 2026
      Google poised to lose ad crown to Meta

      Google poised to lose ad crown to Meta

      14 April 2026
      Grand Theft Data - hackers hit Rockstar Games - Grand Theft Auto

      Grand Theft Data – hackers hit Rockstar Games

      14 April 2026
      UK PM Keir Starmer declares war on doomscrolling

      UK PM Keir Starmer declares war on doomscrolling

      13 April 2026
      Big Tech is going nuclear

      Big Tech is going nuclear

      10 April 2026
    • In-depth
      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
      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
    • TCS
      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
      TCS | Donovan Marsh on AI and the future of filmmaking

      TCS | Donovan Marsh on AI and the future of filmmaking

      7 April 2026
      TCS+ | Vodacom Business moves to crack the SME tech gap - Andrew Fulton, Sannesh Beharie

      TCS+ | Vodacom Business moves to crack the SME tech gap

      7 April 2026
      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
    • 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
      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
      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 » Opinion » Russell Southwood » Going where others fear to tread

    Going where others fear to tread

    By Russell Southwood30 June 2014
    Twitter LinkedIn Facebook WhatsApp Email Telegram Copy Link
    News Alerts
    WhatsApp

    Russell-Southwood-180In the main, Africa’s universal service agencies have not covered themselves in glory. Although money has been collected from operators, it has largely sat in the bank gathering interest.

    Even in countries such as Kenya, which have expended large amounts of energy and resources on putting in place broadband infrastructure, roll-out to citizens not in the addressable market is missing. Kenya is only now about to launch a universal service agency.

    Even where they have been operational, universal service agencies have lacked the clout to make things happen quickly. One agency at the Intel universal service summit, held in Cape Town last week, said it had difficulty co-ordinating its efforts with the rural electrification body. Without electricity and roads, the cost of remote roll-out is so much higher.

    But there are a handful of such agencies in Africa that have gone about their task with energy and are spending their annual budgets effectively. Two of these are Lesotho and Ghana.

    Lesotho’s agency gets its income from a 1% levy on operators and a minimum 25% of the revenues that its parent body — the Lesotho Communications Authority — raises. It spends 100% of the US$1,1-$1,2m it raises in this way. Started in 2009, its programme of work has thus far focused on mobile network coverage expansion, setting up an Internet exchange point and the registry for the national .ls domain.

    Since 2009, it has rolled out 20 base stations in remote rural areas where neither of the two existing mobile operators wanted to go. These projects have benefited at least 63 400 people in some 320 villages in the rural areas of the country. In 2013/2014, its 61 projects benefitted 5 476 people.

    These are mountainous places without roads or electricity. So, to facilitate the process, the agency spends between 20%-25% of its budget on road and electricity infrastructure. The latter is mainly solar panels but it prefers grid connections — solar panels are all too often stolen.

    About 80% of these base stations are now operationally profitable. Some are better than others. The programme is mainly voice, but some have 3G connections, says Nthabiseng Pule, executive secretary of Lesotho’s universal service agency.

    It has profiled more villages for coverage and anticipates that some of these will also be profitable on an operational basis.

    In 2013/2014, the agency added an emphasis on broadband Internet and has 13 projects to connect schools in a project carried out with the International Telecommunication Union costing $855 000. The project was done in partnership with the two mobile operators.

    “The fund faced the challenge of there being a higher demand for services in unserved areas than there were funds for projects,” says Pule. As a result, six projects for mobile network expansion had to be deferred to 2014/2015”.

    Ghana’s universal service agency, the Ghana Investment Fund for Electronic Communications (Gifec), was established in 2004 but did not get its legal framework until 2008 when the Communications Act was introduced. It collects 1% of net revenues from telecoms operators, giving it $67/year to spend. It has four programme areas: cyber labs, basic telephony access, ICT for livelihoods and an ICT awareness programme.

    There are 10 projects under these programmes. The cyber labs include city information centres, 440 schools, 30 libraries and, interestingly, 12 prisons — with the service aimed at inmates.

    The basic telephone programme rolls out mobile voice coverage to remote areas. It uses three independent service providers — K-Net, Mer Telecom and Rom Telecom — and the base stations put in place can be used by all operators. There are almost 40 base stations in the remote areas of Western Ghana and Volta. They provide both voice and data, the latter being a free service. Only two of the 20 are not making money on an operational basis after the capital subsidy.

    cell-tower-640

    Gifec is debating its next long-term plan and discussion is focused on the idea of setting up an independent rural network that can be used to connect all areas of this kind as well as outsourcing. “As most mobile companies are selling their towers, we may have to look for a tower company to arrange it,” says Gifec business development manager Philip Prempeh.

    The challenge of satellite costs (which are typically 60% of a remote base station’s operational expenditure) are being considered: “These base stations can only be done by satellite. We want the regulator to give an undertaking on quality of service. Satellite costs are coming down and are now about half of the original quotes we had.”

    Two things stand out from these examples. Firstly, agencies need to tackle the roads and electrification aspects of the project. Secondly, many of the mobile phone coverage projects sit in the area between addressable markets and non-market areas. Many are profitable after the capital expenditure has been written off through subsidy.

    The challenge for governments and regulators in many African countries is to get in place an effective body to address these universal service issues. And perhaps the time has come to absolve the mobile operators of their original licence obligations to go to these areas and to allow independent operators (as in Ghana) to do the infrastructure provision.

    • Russell Southwood is head of Balancing Act Africa

     

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


    Gifec Lesotho Communications Authority Nthabiseng Pule Philip Prempeh Russell Southwood
    WhatsApp YouTube
    Share. Facebook Twitter LinkedIn WhatsApp Telegram Email Copy Link
    Previous ArticleIndustry consolidation gathers pace
    Next Article Sony’s Xperia Z2 Tablet reviewed

    Related Posts

    Starlink launches in Lesotho amid US tariff threat

    Ructions in Lesotho over licensing of Starlink

    17 April 2025
    Starlink expands public advocacy campaign as it pushes for SA licence

    Lesotho, under US tariff pressure, grants licence to Starlink

    15 April 2025
    Rocky road to licensing for Starlink in Lesotho

    Rocky road to licensing for Starlink in Lesotho

    11 March 2025
    Company News
    Fibre: the backbone of South Africa's digital health ecosystem - Mweb

    Fibre: the backbone of South Africa’s digital health ecosystem

    16 April 2026
    New man to accelerate wholesale connectivity in the DRC - Gaetan Soltesz, FAST Congo

    New man to accelerate wholesale connectivity in the DRC

    15 April 2026
    Avast Business and Avert IT Distribution rewrite the SMB cybersecurity playbook

    Avast Business and Avert IT Distribution rewrite the SMB cybersecurity playbook

    15 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
    Wits project pits African creators against AI music's blind spots

    Wits project pits African creators against AI music’s blind spots

    17 April 2026
    Prosus offloads 4.5% of Delivery Hero to Uber for €270-million

    Prosus offloads 4.5% of Delivery Hero to Uber for €270-million

    17 April 2026
    Numsa digs in for 8% as Eskom wage pact splits unions

    Numsa digs in as Eskom wage pact splits unions

    17 April 2026
    Consumers get new weapon against direct marketing spam

    Consumers get new weapon against phone call spam

    16 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}