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
      Cape Town agency powers biggest gaming Kickstarter ever - Kyle Puller

      Cape Town agency powers biggest gaming Kickstarter ever

      3 May 2026
      Schreiber suspends home affairs officials over fake AI references - Leon Schreiber

      Schreiber suspends home affairs officials over fake AI references

      30 April 2026
      South Africa headed to the polls in November

      South Africa headed to the polls in November

      30 April 2026
      Google humbles Big Tech's cloud heavyweights

      Google humbles Big Tech’s cloud heavyweights

      30 April 2026
      Logistics start-up Shiprazor pulls in R44-million seed round

      Logistics start-up Shiprazor pulls in R44-million seed round

      30 April 2026
    • World
      '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
      Worries over OpenAI's growth as Anthropic gains ground - Sam Altman. Shelby Tauber/Reuters

      Worries over OpenAI’s growth as Anthropic gains ground

      28 April 2026
      Taylor Swift trademarks her voice to fight AI fakes

      Taylor Swift trademarks her voice to fight AI fakes

      28 April 2026
      DeepSeek's long-awaited V4 model enters preview

      DeepSeek’s long-awaited V4 model enters preview

      24 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
      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
    • TCS

      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
      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
    • 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 » Steve Song » How ANC is squandering SA’s digital future

    How ANC is squandering SA’s digital future

    By Steve Song19 April 2012
    Twitter LinkedIn Facebook WhatsApp Email Telegram Copy Link
    News Alerts
    WhatsApp
    Steve Song

    The release last week of Research ICT Africa’s report on mobile phone pricing in Africa has provoked a little controversy. The facts are quite damning. SA has some of the highest mobile costs on the continent. This is odd given the country’s comparative wealth and infrastructural advantages. By rights, SA ought to have the cheapest phone calls and the fastest bandwidth on the continent.

    But we don’t. Why would that be? Well, in SA we are very good at finger pointing. Industry points to government and the regulator. The regulator points to industry and government. And the government points at the regulator and industry. And so this merry-go-round has gone on since the turn of the century.

    So whose fault is it? Where does the blame lie? Lloyd Gedye of the Mail & Guardian interprets the report to mean that the Independent Communications Authority of SA (Icasa) has failed and indeed the report clearly states that:

    The regulation in March 2011 by Icasa of the termination price that operators charge each other to terminate calls on each other’s networks has not had the intended outcome of creating a fairer competitive environment and a reduction in prices for consumers.

    But for me this is like blaming a man with a wooden sword for failing to conquer a lion. Icasa is terribly mismatched in terms of its ability to go head to head with the telecommunications industry, both in terms of independence and resources. So, perhaps Icasa has failed — but whose fault is that?

    Predictably, the Research ICT Africa report provoked a storm of obfuscation from industry. Vodacom spokesperson Richard Boorman says:

    Mobile termination rates (MTRs) are not an industry-wide cost that the consumer bears — the net cost of MTRs to consumers is and always has been zero. MTRs are paid by operators to each other to terminate calls on the other’s network.

    Err, what? So, it doesn’t matter what mobile operators pay each other, it is always the right price? Holy magical thinking, Batman! They also argue that call quality is higher in SA and that the country’s geography is more expensive to service than countries such as Kenya and Tanzania. Having travelled in Kenya and Tanzanian recently, I can say this does not bear out in my experience. And did I ask for higher call quality? Could I please have a cheaper, crappier call option?

    There is some truth to the argument about geography but not nearly enough truth to explain the call-cost disparity revealed in the report. Really, this is just the standard litany of excuses that the likes of Vodacom and MTN trot out every time more evidence is presented of market failure in SA.

    Is industry to blame? Well, yes, but it is like blaming the lion for eating the wildebeest. Companies are accountable to their shareholders. They employ all the tricks available to them to maximise their advantage, except they don’t have teeth, they have lawyers.  Now, when government was a major shareholder in Vodacom, this got to be pretty muddy ground indeed. Happily, that is done with. You could wish for industry leaders with a little more vision who see both the social and economic benefits of driving down costs and increasing access but there we would need to blame the shareholders who opt for self-interest.

    So, if it isn’t really Icasa’s fault or industry’s fault, where does the blame lie? The fault lies with government, and in SA the government of the past 18 years is the ANC. I hate saying negative things about the ANC. For such a long period in my life, the ANC has represented the spirit of justice, of resilience, of endurance in the face of overwhelming odds that it is hard to bring myself to criticise the ANC openly. But like William Shatner in a corset, sometimes you have to recognise that things have changed.

    What has the ANC done wrong? It is quite simple. It has failed to take telecoms seriously. It has consistently relegated communications as a junior ministry and appointed ministers for reasons other than their competence and vision. The result has been the unhappy, bitter, finger-pointing environment that we have today. And, sure, I, too, am pointing the finger here squarely at the ANC. But the buck has to stop somewhere and I believe that we would be in a very different SA had someone with vision and leadership been given the helm of the department of communications some years ago.

    And things are getting worse. Minister Dina Pule recently announced a full review of SA’s ICT policies, kicking off with a two-day colloquium, which started on Thursday in Midrand. On the surface, that sounds pretty good and about time. Well, it would be if it had not been outsourced to Deloitte. Outsourcing to large consulting firms is basically an announcement saying, “I have no idea what to do and will need someone else to blame if things go wrong.”

    Government and industry alike find it hard to resist the siren call of the big-name consulting firm. Pay me. I have the answer you need.

    So, all of the planning has been handled by Deloitte and some industry insiders. But perhaps that’s not so bad. The incumbents are forever making the point that they are the only one’s deserving of more spectrum because only they really have the capacity to roll out infrastructure nationally. There is a certain simple plausibility to this but really it is like saying money should only be given to the rich because only they know how to manage it properly.

    More insight can be found in a new book by Daron Acemoglu and James Robinson called Why Nations Fail: The Origins of Power, Prosperity and Poverty. The book is an ambitious, sweeping look at history providing a theory of why some countries have prospered and other haven’t. They divide countries into those with inclusive versus those extractive governments. There is a good review of the book in The Economist and a good interview with Daron Acemoglu on Econtalk. I’ve only just started reading it but one story that has stood out for me is how Venice went from hugely influential city-state to tourist backwater. It is summarised well here:

    Upward mobility drove the city-state’s wealth and power. Its innovative commenda, a partnership in which capital-poor sailors and rich Venetians shared the profits from voyages, allowed those of modest background to rise through the ranks. This fluidity threatened established wealth, however. From the late 13th century, the ducal council began restricting political and economic rights, banning the commenda and nationalising trade. By 1500, with a stagnant economy and falling population, Venice’s descent from great power was well under way.

    When a wealthy elite stifles the rise of new players, bad things happen. That is a good description of where the telecoms industry is in SA at the moment. We need to create opportunities for new blood to enter and rise in the telecoms sector. It will be good for everyone in the end. And that’s why the incumbents are not best placed to implement SA’s broadband future, at least not on their own.

    So, how can we make this happen? I believe it is simple. The ANC needs to appoint new leadership in the department of communications and elevate the ministry to frontline status. It probably needs to be a young minister who understands the potential of the sector and that the digital age is not just a Twitter account managed by a digital consultant. Stick that in your colloquium agenda!

    • Steve Song is founder of Village Telco
    • This piece was originally published on Song’s blog, Many Possibilities
    Follow TechCentral on Google News Add TechCentral as your preferred source on Google


    Dina Pule Icasa MTN Richard Boorman Steve Song Vodacom
    WhatsApp YouTube
    Share. Facebook Twitter LinkedIn WhatsApp Telegram Email Copy Link
    Previous ArticleNokia reports $1,7bn quarterly loss
    Next Article Last-mile fibre coming to more suburbs

    Related Posts

    Record R99-million payday for MTN CEO Ralph Mupita

    Record R99-million payday for MTN CEO Ralph Mupita

    29 April 2026
    MTN director traded shares during closed period - Vincent Rague

    MTN director traded shares during closed period

    29 April 2026
    MTN warns gambling is hurting its prepaid business in South Africa - Ferdi Moolman

    MTN warns gambling is hurting its prepaid business in South Africa

    29 April 2026
    Company News
    The breach is in the database - Ascent Technology Johan Lamberts

    The breach is in the database

    30 April 2026
    Hospitality sector embraces Google Workspace and Gemini to cut admin - Digicloud Africa, Rand Data Systems

    Hospitality sector embraces Google Workspace and Gemini to cut admin

    30 April 2026
    Paratus Mozambique powers 2026 Santa Maria fishing showdown

    Paratus Mozambique powers 2026 Santa Maria fishing showdown

    30 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

    Subscribe to Updates

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

    Latest Posts
    Cape Town agency powers biggest gaming Kickstarter ever - Kyle Puller

    Cape Town agency powers biggest gaming Kickstarter ever

    3 May 2026
    Schreiber suspends home affairs officials over fake AI references - Leon Schreiber

    Schreiber suspends home affairs officials over fake AI references

    30 April 2026
    South Africa headed to the polls in November

    South Africa headed to the polls in November

    30 April 2026
    Google humbles Big Tech's cloud heavyweights

    Google humbles Big Tech’s cloud heavyweights

    30 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}