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
      Fewer stores, more Bash: TFG's online pivot gathers pace

      Fewer stores, more Bash: TFG’s online pivot gathers pace

      6 November 2026
      Tesla pulls the plug on the Cybertruck

      Tesla pulls the plug on the Cybertruck

      6 November 2026
      AA boss gives South Africa's car industry five years - Bobby Ramagwede

      AA boss gives South Africa’s car industry five years

      6 November 2026
      AI's black box may not be so black after all

      AI’s black box may not be so black after all

      6 November 2026
      Big wind farms drive a surge in private power registrations

      Big wind farms drive a surge in private power registrations

      6 November 2026
    • World
      John Ternus faces first big test as Apple CEO - John Ternus

      John Ternus faces first big test as Apple CEO

      2 November 2026
      Alleged Israeli spy company heavily targeted Starlink users

      How online ads were used to hunt Starlink users

      28 October 2026
      Anthropic's IPO stands alone

      Anthropic’s IPO stands alone

      23 October 2026
      PHP flaws trigger global scramble as hackers pounce

      PHP flaws trigger global scramble as hackers pounce

      22 October 2026
      OpenAI turns the tables on Apple in trade secrets fight

      OpenAI turns the tables on Apple in trade secrets fight

      15 October 2026
    • In-depth
      Ducking hell: inside Apple's hidden list of words the iPhone won't suggest

      Ducking hell: inside Apple’s hidden list of words the iPhone won’t suggest

      6 November 2026
      Why investors are souring on Netflix

      Why investors are souring on Netflix

      22 October 2026

      10 days that changed the course of AI

      21 September 2026
      Meta to the AI industry: slow down without us - Mark Zuckerberg

      Meta to the AI industry: slow down without us

      16 September 2026
      Google DeepMind CEO Demis Hassabis. Image: John Sears

      The plan to stop AI from breaking the world

      16 July 2026
    • TCS
      TCS+ | Old Mutual's Celiwe Ross on leading people through AI - Old Mutual

      TCS+ | Old Mutual’s Celiwe Ross on leading people through AI

      6 November 2026
      TCS+ | How the Apple ecosystem drives productivity for SMEs - Sudesh Pillay iStore and Kevin McLennan

      TCS+ | How the Apple ecosystem drives productivity for SMEs

      6 November 2026
      TCS+ | Vox on AI, data rules and omnichannel communication for SMEs

      TCS+ | Vox on AI, data rules and omnichannel communication for SMEs

      26 October 2026
      TCS | The Cape Town firm quietly connecting Eskom, Pep and 6 000 ATMs - Réan van Niekerk, Metacom

      TCS | The Cape Town firm quietly connecting Eskom, Pep and 6 000 ATMs

      23 October 2026
      TCS+ | Boards are underestimating the cost of a cyberattack, says Arctic Wolf - Jason Oehley and Andre Den Hond

      TCS+ | Boards are underestimating the cost of a cyberattack, says Arctic Wolf

      22 October 2026
    • Opinion
      AI's boardroom honeymoon is over - Gary Stocks

      AI’s boardroom honeymoon is over

      22 October 2026
      Before South Africa licenses Starlink, it should look at Ukraine - Duncan McLeod

      Before South Africa licenses Starlink, it should look at Ukraine

      21 October 2026
      Nonkqubela Thathakahle Jordan-Dyani

      Why cybersecurity is now a national security issue for South Africa

      15 October 2026
      When a machine can choose, who does it become? Fanie van Rooyen

      When a machine can choose, who does it become?

      9 October 2026
      Let South Africans jailbreak their way to digital sovereignty - Dirk de Vos

      Let South Africans jailbreak their way to digital sovereignty

      5 October 2026
    • Company News
      • 1Stream
      • Africa Data Centres
      • AfriGIS
      • Altron Digital Business
      • Altron Document Solutions
      • Altron Group
      • Arctic Wolf
      • Ascent Technology
      • AvertITD
      • BBD
      • Braintree
      • CallMiner
      • CambriLearn
      • CM.com
      • 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
      • Publishared
      • 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
      • Fintech and payments
      • 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 » In-depth » ‘How to fix SA broadband’

    ‘How to fix SA broadband’

    By Duncan McLeod29 June 2012
    Twitter LinkedIn Facebook WhatsApp Email Telegram Copy Link
    Get breaking news on WhatsApp

    Spectrum trading, use-it-or-lose-it conditions and wholesale and open-access networks will deliver the broadband growth governments in SA and sub-Saharan Africa are looking for, according to a new research report published by telecommunications investment group Convergence Partners.

    The report, titled “Let My People Go (Online)”, says that without proper spectrum management for wireless connectivity, regulators risk short-circuiting Africa’s wireless broadband revolution.

    “Informa Telecoms estimates that by 2015, 20% of Internet traffic on the continent will be carried by cellular networks, compared to the global average of 3%,” the report says. “[This] translates into an increase in spectrum bandwidth demand.”

    Yet, it says, telecoms regulators in sub-Saharan Africa have not kept pace with their peers in Europe and the US in making spectrum available for telecoms. An average of only 360MHz of spectrum has been made available to telecoms operators in sub-Saharan Africa, compared to an average of 550MHz in the US and Europe.

    “These developed countries plan to nearly double this allocation, while African regulators are navel-gazing and have yet to decide on even an optimal spectrum allocation model for the continent,” the report says. “In practice, demand for additional spectrum in sub-Saharan Africa is likely to be even greater than in high-income countries owing to the phenomenal mobile growth on the continent and as wireless and mobile broadband only supplements wireline broadband in the first world as it is not their primary means of access to the Internet.”

    The Convergence Partners report, which was authored by Envir Fraser and Teni Ntoi, also criticises the “vertically integrated” approach to running telecoms companies. This is where operators own and operate all elements of their networks. This, it says, is an “outdated business model that not only inhibits investment into telecoms infrastructure but also acts as a barrier to entry to new players, owing to the high sunk costs central to rolling out a network.”

    Furthermore, it says current frameworks, both policy and regulatory, are a “disincentive to investment as they are technically and economically inefficient giving rise to above-cost prices at a socially undesirable level of output”.

    Convergence Partners proposes a radical shake-up in the way spectrum is awarded and managed, saying the “administrative rigidities of the current static allocation model not only result in vast underuse of spectrum due to the inflexibility of the current licensing system, but also promote rent-seeking behaviour among incumbent operators seeking to use the regulatory process to protect their economic rents, as evidenced by the submissions to the regulator, the Independent Communications Authority of SA, concerning the spectrum licensing framework for high-demand bands”.

    “It is critical that the regulatory authorities and incumbent operators look to innovative business models such as network sharing and wholesale network deployments to accelerate broadband penetration.”

    Convergence Partners is a proponent of a national, wholesale and open-access wireless network using the bands such as 800MHz and 2,6GHz as a way of delivering broadband connections to more South Africans. It has formed a new company, called SpectraCo, to investigate options and to lobby for changes to policy and regulation.

    The report says the digital dividend — the spectrum around 800MHz that will be freed up for telecoms purposes when the country’s broadcasters move to digital terrestrial television — should be used to improve rural connectivity. It does not want the band simply to be allocated to incumbent operators to extend their offerings in urban centres only.

    “The strategic management of the digital dividend and currently underutilised but in high demand spectrum at 2,6GHz and 3,5GHz on the continent are likely to advance broadband to a critical point where network effects and economies of scale accelerate broadband adoption,” the report says.

    “Regulators should permit the existence of secondary markets to mitigate the inefficiencies of the current static allocation of spectrum.”

    The report also cautions against using auctions as a way of allocating spectrum, saying that although this maximises revenue generation for the state it leads to market failures and favours incumbent operators with large financial resources. “This may also have the undesired effect of compounding the digital divide between urban and less commercially viable rural areas as spectrum owners look to recover the cost of the spectrum by deploying networks in higher income centres as opposed to rolling out services to rural communities.”

    It argues that the network operators’ vertically integrated models, where they have built end-to-end networks, has “hampered meaningful broadband penetration by stifling service-based competition and meaningful access to the incumbent operators’ infrastructure”.

    “We are of the view that an independent wholesale player would provide significant benefit for both operators (incumbents and new entrants) and consumers,” the report says, adding regulators should allow for dynamic usage of frequencies and allow reuse and reallocation of spectrum. “An open-access, carrier-neutral wholesale network is the most appropriate model to achieving developmental imperatives.”

    This model splits the infrastructure and service layers, allowing more service-based competition, the report says. “Open-access networks are able to fill a gap left by the failure of the incumbent operators to roll out broadband to underserviced areas at sustainable prices, as infrastructure sharing in a liberalised market provides the incentive and market signals for costly infrastructure deployment.”

    It also encourages market entry and competition by lowering the barriers to entry, as operators no longer have to deploy costly network infrastructure.

    Creating a wholesale network operator also creates concerns that it would be bestowed with monopoly pricing powers. The report says that to mitigate the risk, regulation needs to balance the commercial interests of the wholesaler with developmental imperatives.

    “As with toll-road concessions, the allocation of wholesale licences needs to be a regulated, transparent and competitive process,” it says.

    “If regulators continue allocating spectrum in the piecemeal manner they have, there will neither be sufficient incentive for incumbent operators to deploy infrastructure in rural areas nor an enabling environment for new entrants to scale the high barriers to entry.”  — (c) 2012 NewsCentral Media

    • The full Convergence Partners report is available here
    Add TechCentral as a preferred source on GoogleFollow TechCentral on Google NewsGet breaking news on WhatsApp


    Convergence Partners Envir Fraser Icasa Informa Telecoms Teni Ntoi
    WhatsApp YouTube
    Share. Facebook Twitter LinkedIn WhatsApp Telegram Email Copy Link
    Previous ArticleThe Woman in Black: silly yet scary
    Next Article Vodacom fires new salvo in voice war

    Related Posts

    Icasa's Sim rules need a privacy backstop

    Icasa’s Sim rules need a privacy backstop

    5 November 2026
    Telcos push for 20-Sim cap and accuse Icasa of overreach - ACT CEO Nomvuyiso Batyi

    Telcos push for 20-Sim cap and accuse Icasa of overreach

    3 November 2026
    The door to new network operators in South Africa is about to open

    The door to new network operators in South Africa is about to open

    2 November 2026
    Company News
    XLink brings dual-network resilience to eSim

    XLink brings dual-network resilience to eSim

    6 November 2026
    CambriLearn parents can now ask AI whether their child went to class

    CambriLearn parents can now ask AI whether their child went to class

    6 November 2026
    'There was hunger for alternatives': PSET launches at Purcon 2026 - Ebenezer Smith

    ‘There was hunger for alternatives’: PSET launches at Purcon 2026

    6 November 2026
    Opinion
    AI's boardroom honeymoon is over - Gary Stocks

    AI’s boardroom honeymoon is over

    22 October 2026
    Before South Africa licenses Starlink, it should look at Ukraine - Duncan McLeod

    Before South Africa licenses Starlink, it should look at Ukraine

    21 October 2026
    Nonkqubela Thathakahle Jordan-Dyani

    Why cybersecurity is now a national security issue for South Africa

    15 October 2026

    Subscribe to Updates

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

    Latest Posts
    Fewer stores, more Bash: TFG's online pivot gathers pace

    Fewer stores, more Bash: TFG’s online pivot gathers pace

    6 November 2026
    Tesla pulls the plug on the Cybertruck

    Tesla pulls the plug on the Cybertruck

    6 November 2026
    AA boss gives South Africa's car industry five years - Bobby Ramagwede

    AA boss gives South Africa’s car industry five years

    6 November 2026
    AI's black box may not be so black after all

    AI’s black box may not be so black after all

    6 November 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}
    🇿🇦 Sign up to the TechCentral newsletter