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
      Nedbank hires MTN's former tech chief as group CIO - Nikos Angelopoulos

      Nedbank hires MTN’s former tech chief as group CIO

      31 July 2026
      Eskom's diesel bill falls 86% as breakdowns hit eight-year low

      Eskom’s diesel bill falls 86% as breakdowns hit eight-year low

      31 July 2026
      Ramaphosa signs off on taking the grid away from Eskom

      Ramaphosa signs off on taking the grid away from Eskom

      31 July 2026
      Microsoft just had the biggest day in stock market history

      Microsoft just had the biggest day in stock market history

      31 July 2026
      MTN Nigeria's growth engine stalled in second quarter - Karl Toriola

      MTN Nigeria’s growth engine stalled in second quarter

      31 July 2026
    • World
      Meta AI will now tell parents if their teen is in crisis

      Meta AI will now tell parents if their teen is in crisis

      17 July 2026
      IBM shares crash 25% as AI upends software spending - Arvind Krishna

      IBM shares crash 25% as AI upends software spending

      15 July 2026
      Jony Ive's first OpenAI device: an AI smart speaker - Jony Ive and Sam Altman

      Jony Ive’s first OpenAI device: an AI smart speaker

      15 July 2026
      Stripe, Advent in talks to buy PayPal for $53-billion

      Stripe, Advent in talks to buy PayPal for $53-billion

      15 July 2026
      Memory crisis sends smartphone market into steep decline

      Memory crisis sends smartphone market into steep decline

      13 July 2026
    • In-depth
      The plan to stop AI from breaking the world - Google DeepMind CEO Demis Hassabis. Image: John Sears

      The plan to stop AI from breaking the world

      16 July 2026
      The internet has a Strait of Hormuz problem

      The internet has a Strait of Hormuz problem

      15 July 2026
      AI boom sparks rally, frenzy and fear

      AI boom sparks rally, frenzy and fear

      11 June 2026
      Every plug-in hybrid on sale in South Africa, ranked by price - Lamborghini Temerario

      Every plug-in hybrid on sale in South Africa, ranked by price

      7 June 2026
      What Wi-Fi 8 will mean for wireless networks

      What Wi-Fi 8 will mean for wireless networks

      1 June 2026
    • TCS
      TCS+ | Why South African workers must become supervisors of digital labour - Accelera Digital Group Cliff de Wit

      TCS+ | Why South African workers must become supervisors of digital labour

      31 July 2026
      TCS | Rapid deployment rules can't work without municipalities: ACT - Nomvuyiso Batyi

      TCS | Icasa’s rules skip the real bottleneck: ACT

      30 July 2026
      TCS+ | iStore Business on why Apple makes sense for SMEs - Sudesh Pillay and Tamia Nontsikelelo

      TCS+ | iStore Business on why Apple makes sense for SMEs

      30 July 2026
      TCS+ | A smarter approach to cloud for South African businesses - Joel Chacko and Jonathan Oaker

      TCS+ | A smarter approach to cloud for South African businesses

      28 July 2026
      TCS | How Optasia lends billions to people banks can't see - Salvador Anglada

      TCS | How Optasia lends billions to people banks can’t see

      23 July 2026
    • Opinion
      The author, Jannie van Zyl

      Selling vapour is corporate suicide in slow motion

      16 July 2026
      Brazil's online gambling crackdown is a lesson for South Africa

      How Amazon outmanoeuvred Starlink in South Africa

      15 July 2026
      The Popia problem with agentic AI - Herman Haasbroek

      The Popia problem with agentic AI

      14 July 2026
      The author, Fanie van Rooyen

      South Africa can still catch the AI wave – here’s how

      7 July 2026
      The author, Fanie van Rooyen

      The AI utopia South Africa can’t afford

      1 July 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
      • CM Telecom
      • 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
      • 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
      • Financial services
      • 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 » Duncan McLeod » Government distrust of telecoms operators is a big problem

    Government distrust of telecoms operators is a big problem

    By Duncan McLeod14 July 2017
    Twitter LinkedIn Facebook WhatsApp Email Telegram Copy Link
    News Alerts
    WhatsApp

    [dropcap]S[/dropcap]o, government is considering merging Broadband Infraco and Sentech. This makes little sense and suggests the ANC is so blinded by its ideological opposition to privatisation that it won’t make decisions that are patently in the best interests of the sector.

    Quoting two unnamed sources “familiar with the matter”, news wire Bloomberg reported on Friday that government is considering merging the businesses to help accelerate the roll-out of high-speed Internet over the next three years, presumably as part of the state’s long-stalled South Africa Connect infrastructure plans.

    It has all the hallmarks of another government-led plan to revive economic growth that is destined to fail.

    The plan, according to Bloomberg, is to use Sentech’s wireless assets to provide services, presumably matched with Infraco’s backhaul fibre links to hook up the base stations.

    It will not be the first time that government has tried to repurpose Sentech to provide wireless Internet services to consumers. The last attempt was a disaster

    That presupposes that Sentech has the correct spectrum to do this. It handed back its spectrum in the 2.6GHz band to communications regulator Icasa to avoid high licensing fees, while it has no access to the sub-1GHz bands that it would need to provide access in underserviced parts of the country. Government can’t simply assign spectrum to Sentech — the company would have to participate in a competitive licensing process.

    If a merger is indeed on the cards, it is troubling on many levels.

    Firstly, it will not be the first time that government has tried to repurpose Sentech to provide wireless Internet services to consumers. The last attempt was a disaster.

    The late former communications minister Ivy Matsepe-Casaburri first came up with a hare-brained scheme in the mid-2000s to have Sentech, which sat in her portfolio, build a wireless Internet network to compete with Telkom, which at the time enjoyed an absolute monopoly over South Africa’s telecoms sector.

    Unsuited

    What the bumbling Matsepe-Casaburri failed to appreciate was that Sentech, led at the time by her good friend Sebiletso Mokone-Matabane, was hopelessly unsuited to serving a retail consumer audience.

    Up to then, Sentech had only a handful of customers — South Africa’s television and radio broadcasters. Asking the company to pivot and provide Internet services to a mass market, and all the complexity that entailed, was a big mistake. Sentech MyWireless failed.

    Nothing has changed since then, and there is no reason to believe Sentech is ready to do it again, even if it operates as a wholesaler.

    Secondly, talk of merging Infraco and Sentech shows how the ANC’s leftist ideology is blinding government to the changes that must be made to ensure the sector continues to grow strongly.

    Infraco’s assets would be best deployed by a private sector player who could put them to effective use. Vodacom has shown an interest in buying the company, but government has shown the mobile operator the cold shoulder. Why is that?

    Is it because Vodacom is a significant player in the sector and government is concerned about concentrating too much power in one company? If so, the competition authorities should be left to make that call, not the politicians.

    So hostile has the government become to the private sector that it even mooted the idea of taking away the spectrum of the mobile operators

    Is it because Vodacom is owned by a foreign company, the UK-based Vodafone (remember, “monopoly capital” can’t be trusted)? This explanation may be closer to the truth.

    In recent years, the hostility towards the private sector by the Jacob Zuma administration has been on the rise. This is evident in the new Mining Charter, for example, and, in the technology sector, in the national integrated ICT policy white paper.

    So hostile has the government become to the private sector that it even mooted the idea of taking away the spectrum the mobile operators have used very successfully to provide voice and data services to the vast majority of South Africans (something the state, it must be said, has failed spectacularly to do, first through Telkom, then Sentech and later Broadband Infraco).

    Venezuela

    This is the sort of calamitous move one would expect of Venezuela. Thankfully, government appears to have backed down — though that such a clause made it into a white paper policy document in the first place is frightening.

    Government has also backed down over plans to license all future so-called high-demand spectrum, which can be used to build 4G/LTE and 5G networks, to a wholesale open-access network provider (Woan). But it remains to be seen how much spectrum will be reserved for the Woan and whether commercial operators will get sufficient access to continue to service booming demand for data.

    Pause for a minute to think about this: government proposed cutting off the mobile operators’ lifeblood — radio frequency spectrum — to experiment with a largely untested model that could have caused untold damage to the sector. Enormous damage may still be inflicted if a proposed hybrid model, where the Woan will coexist with commercial operators, fails to work.

    There is a deep distrust of the commercial operators in government circles, and much of it is rooted in populism. And it’s not just about data prices. There appears to be a deep-seated ideological distrust of the private sector. That’s why government won’t privatise Broadband Infraco. It’s why it’s considering merging it with another state-owned enterprise, even though such a deal makes little sense.

    The Bloomberg report quotes Siya Qoza, a spokesman for the telecoms ministry, as saying that government is “pursuing the rationalisation of state broadband assets to reduce the duplication of infrastructure and mandates of state-owned companies. It will help to fast-track the expansion of access to modern communications infrastructure and services to more South Africans.”

    What’s the bet that, if it happens, it achieves precisely nothing?

    • Duncan McLeod is TechCentral’s editor
    Follow TechCentral on Google News Add TechCentral as your preferred source on Google


    Broadband Infraco Duncan McLeod Infraco Ivy Matsepe-Casaburri Sentech top
    WhatsApp YouTube
    Share. Facebook Twitter LinkedIn WhatsApp Telegram Email Copy Link
    Previous ArticleState said to mull Infraco, Sentech merger
    Next Article Cable break downs Sat-3

    Related Posts

    The lone ship guarding Africa's internet - Léon Thévenin

    The lone ship guarding Africa’s internet

    14 July 2026
    Watts & Wheels S1E7: 'Ferrari's EV breaks the internet'

    Watts & Wheels S1E7: ‘Ferrari’s EV breaks the internet’

    8 July 2026
    Brazil's online gambling crackdown is a lesson for South Africa

    Brazil’s online gambling crackdown is a lesson for South Africa

    22 June 2026
    Company News
    Domains.co.za launches self-hosted n8n VPS hosting

    Domains.co.za launches self-hosted n8n VPS hosting

    31 July 2026
    Smarter.tech '26 shows why smarter technology begins with context - Obsidian Systems

    Context is the missing piece in enterprise AI: Obsidian

    31 July 2026
    Huawei launches 12 intelligent transport solutions in South Africa - Sam Tang

    Huawei launches 12 intelligent transport solutions in South Africa

    30 July 2026
    Opinion
    The author, Jannie van Zyl

    Selling vapour is corporate suicide in slow motion

    16 July 2026
    Brazil's online gambling crackdown is a lesson for South Africa

    How Amazon outmanoeuvred Starlink in South Africa

    15 July 2026
    The Popia problem with agentic AI - Herman Haasbroek

    The Popia problem with agentic AI

    14 July 2026

    Subscribe to Updates

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

    Latest Posts
    Nedbank hires MTN's former tech chief as group CIO - Nikos Angelopoulos

    Nedbank hires MTN’s former tech chief as group CIO

    31 July 2026
    Eskom's diesel bill falls 86% as breakdowns hit eight-year low

    Eskom’s diesel bill falls 86% as breakdowns hit eight-year low

    31 July 2026
    Ramaphosa signs off on taking the grid away from Eskom

    Ramaphosa signs off on taking the grid away from Eskom

    31 July 2026
    TCS+ | Why South African workers must become supervisors of digital labour - Accelera Digital Group Cliff de Wit

    TCS+ | Why South African workers must become supervisors of digital labour

    31 July 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}