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
      South Africa's ATM network faces its biggest overhaul in decades

      South Africa’s ATM network faces its biggest overhaul in decades

      16 October 2026
      The R77 000 iPhone has arrived in South Africa

      The R77 000 iPhone has arrived in South Africa

      16 October 2026
      Africa's mobile operators pay more for less spectrum, GSMA says

      Africa’s mobile operators pay more for less spectrum, GSMA says

      16 October 2026
      Netflix is losing the battle for your screen time

      Netflix is losing the battle for your screen time

      16 October 2026
      Safaricom control to stay with Vodacom until appeal

      Safaricom control to stay with Vodacom until appeal

      16 October 2026
    • World
      AI is now holding up the world economy, says IMF

      AI is now propping up the world economy, says IMF

      12 October 2026
      SpaceX takes aim at US wireless carriers with spectrum acquisition

      Starlink is coming for your mobile operator

      9 October 2026
      The AI PC is finally here. It's just very expensive - Jensen Huang, Satya Nadella

      The AI PC is finally here. It’s just very expensive

      8 October 2026
      The memory crunch is making Samsung fabulously rich

      The memory crunch is making Samsung fabulously rich

      8 October 2026
      SpaceX to borrow $40-billion to buy Nvidia chips

      SpaceX to borrow $40-billion to buy Nvidia chips

      7 October 2026
    • In-depth

      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
      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
    • TCS
      W&W | LDV's Gerhard Moolman on electric bakkies, fleet orders and 'school fees'

      W&W | LDV’s Gerhard Moolman on electric bakkies and fleets

      9 October 2026
      TCS | Frogfoot sees bigger fibre deals coming - TechCentral Show guests Abraham van der Merwe and Shane Chorley

      TCS | Frogfoot sees bigger fibre deals coming

      8 October 2026
      Meet the CIO | Vodacom's Mohamed Sami on the agentic future

      Meet the CIO | Vodacom’s Mohamed Sami on the agentic future

      5 October 2026
      Lexi Novitske, general partner at Norrsken22, on the TechCentral Show

      TCS | Norrsken22’s Lexi Novitske on how China is winning African tech

      1 October 2026
      TCS | Dominic White and Adam Ely on AI agents going rogue

      TCS | Dominic White and Adam Ely on AI agents going rogue

      29 September 2026
    • Opinion
      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
      South Africa's next energy crisis is in the accounts department - Craig Holmes

      South Africa’s next energy crisis is in the accounts department

      29 September 2026
      The steam engine lesson AI doomsayers keep missing - Sam Clarke

      The steam engine lesson AI doomsayers keep missing

      28 September 2026
      Let South Africans jailbreak their way to digital sovereignty - Dirk de Vos

      Regulating AI: apply the laws we have first

      21 September 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
      • 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 » Hilton Tarrant » How to solve SA’s broadband mess

    How to solve SA’s broadband mess

    By Hilton Tarrant22 February 2016
    Twitter LinkedIn Facebook WhatsApp Email Telegram Copy Link
    Get breaking news on WhatsApp

    hilton-tarrant-180I was on a flight — my tenth or twelfth of the year, I forget — so I missed the president’s state of the nation address. In it, the word “broadband” was mentioned only twice, roughly about the same number of mentions it garners every year.

    “Government,” we were told, “will fast track the implementation of the first phase of broadband roll-out to connect more than 5 000 government facilities in eight district municipalities over a three-year period… Funding to the tune of R740m over a three-year period has been allocated in this regard.”

    That there was zero movement from 2015 — which marked “the beginning of the first phase of broadband roll-out” to connect these facilities — is utterly predictable.

    It’s troubling that the state of the nation address is our only legitimate update on government’s broadband policy, named South Africa Connect, adopted by cabinet in December 2013. (Even the minister’s annual budget speech is low on detail.)

    After more than two years, the department (of telecommunications & postal services, in case you’re wondering where this policy fits in) this weekend finally announced the connection of the first of the eight districts to receive free Wi-Fi, the Dr Kenneth Kaunda District Municipality in the North West (which includes the Matlosana (Klerksdorp), Tlokwe (Potchefstroom), Maquassi Hills and Ventersdorp municipalities).

    Remember that in 2015, we were surprised by the president’s proclamation that Telkom was designated “as the lead agency to assist with broadband roll-out”. Telkom has not yet been officially awarded the project, which raises questions on how this first district municipality was connected (and who did so), and how the budgeted amount of R200m (of the R740m) has been spent in the 2015/2016 year.

    Rivals have, according to Business Times, rightfully called for the project to go to tender. Business Times also cites a Bloomberg report from earlier this month, which said: “Telkom was close to sealing a deal with the government, saying it had already ‘carried out site inspections and studied how to implement the plan in eight districts’.”

    Regardless of who does the work, this number (and the broader amount allocated for the three-year period, needs to be seen in context: R740m is laughable.

    Telkom spends over R4bn/year on capital expenditure. Neotel, with a comparatively tiny network, spends over R500m. Vodacom and MTN will burn through close to R10bn each. Dark Fibre Africa owns fibre network rings in the major metros and 21 smaller metros, including East London, Polokwane, Tlokwe, Emalahleni and George. Nearly a year ago — as at 31 March 2015 — its network covered a total distance of 8 353km, and the book value of its fibre was “in excess of R5bn”.

    Government’s R200m/year is a drop in the ocean.

    TechCentral editor Duncan McLeod argued following the state of the nation address that he doesn’t “think it’s a bad thing that government isn’t committing tens of billions of rand in taxpayers’ money to build a state-led telecoms network similar to Australia’s hopelessly over-ambitious and highly controversial National Broadband Network. For one thing, we’re not Australia — we simply cannot afford it. South Africa does not have the money.”

    Leave it to the private sector
    Leave it to the private sector

    He’s right.

    Government should not be spending money it doesn’t have on trenching fibre. Its expensive distraction (vanity project?) Broadband Infraco is in need of a bailout from treasury to enable it to continue operating. Quite why both it and Telkom are operating national (and international) backhaul networks is downright bizarre. The only hope is that Infraco is one of those state-owned enterprises to be phased out as they “are no longer relevant to our development agenda”.

    German model

    McLeod points to the German model “where, in exchange for receiving access to radio frequency spectrum for 4G broadband, mobile operators first had to build high-quality coverage in the rural and under-serviced parts of that country. Only then could they use the spectrum in the cities.”

    It really is that simple.

    Mobile operators cannot do any more. Because of spectrum limitations, LTE services often remain 4G in name only. The process of licensing ultra-valuable spectrum (800MHz and 2,6GHz) remains stunted. And the pile of unused, “returned” spectrum continues to grow.

    License both bands at, say, R1bn to operators (and to anyone who wants access to it). This will provide a nice boost to the fiscus (which desperately needs it).

    As part of the licensing, ensure that operators connect rural towns and cities to fibre against aggressive — but fair — targets. For every X-dozen smaller towns or Y-thousand kilometres of fibre, operators would be able to use the newly acquired spectrum in Z major metros. And the operators don’t have to each go at it alone. That’s the beauty of fibre. You need only trench once for all operators, and there’s already precedent for this with MTN, Neotel and Vodacom working together to build a national backhaul network. Expand on this.

    Let national treasury have oversight of this process (neither the regulator, Icasa, nor the department(s) responsible for “communications” are capable, I’d argue). Plus, operators have proved rather deft at putting one over regulators in the past.

    There are ways, too, of government having access to a national fibre network without having to own one. Perhaps it has a “99-year lease” to capacity on this newly expanded network? Or it relies on a cost-plus formula to buy access? Or the best price wins?

    Let’s move beyond this obsession with having to own a national fibre network. We don’t need it. We can’t afford it. The private sector can, and should be incentivised (correctly) to connect South Africa. All government need do, ideally through a central agency like Sita or — here’s a thought — Telkom, is provide free connectivity and free Wi-Fi on top. It’s amazing what free, fast connectivity can do for things like entrepreneurship and economic growth. Just ask Project Isizwe (or the OECD).

    • Hilton Tarrant works at immedia
    • This piece was published on Moneyweb and is used here with permission
    Add TechCentral as a preferred source on GoogleFollow TechCentral on Google NewsGet breaking news on WhatsApp


    Broadband Infraco Dark Fibre Africa Duncan McLeod Hilton Tarrant Jacob Zuma MTN Telkom Vodacom
    WhatsApp YouTube
    Share. Facebook Twitter LinkedIn WhatsApp Telegram Email Copy Link
    Previous ArticleBackspace: ‘FBI vs Apple’
    Next Article Watch your kids’ Internet use: security minister

    Related Posts

    Safaricom control to stay with Vodacom until appeal

    Safaricom control to stay with Vodacom until appeal

    16 October 2026
    MTN hits 10Gbit/s wireless speeds in South African 5G-Advanced trial

    MTN hits 10Gbit/s wireless speeds in South African 5G-Advanced trial

    13 October 2026
    Sars to pay Microsoft and IBM R2.75-billion in sole-source deals

    Sars to pay Microsoft and IBM R2.75-billion in sole-source deals

    12 October 2026
    Company News
    Paratus Zambia delivers Starlink to thousands of children in Family Legacy schools

    Paratus Zambia delivers Starlink to thousands of children in Family Legacy schools

    15 October 2026
    Data sovereignty in South Africa is not an address - Ascent Technology, Johan Lamberts

    Data sovereignty in South Africa is not an address

    15 October 2026
    AI is only as good as your asset data

    AI is only as good as your asset data

    14 October 2026
    Opinion
    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
    South Africa's next energy crisis is in the accounts department - Craig Holmes

    South Africa’s next energy crisis is in the accounts department

    29 September 2026

    Subscribe to Updates

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

    Latest Posts
    South Africa's ATM network faces its biggest overhaul in decades

    South Africa’s ATM network faces its biggest overhaul in decades

    16 October 2026
    The R77 000 iPhone has arrived in South Africa

    The R77 000 iPhone has arrived in South Africa

    16 October 2026
    Africa's mobile operators pay more for less spectrum, GSMA says

    Africa’s mobile operators pay more for less spectrum, GSMA says

    16 October 2026
    Netflix is losing the battle for your screen time

    Netflix is losing the battle for your screen time

    16 October 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