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
      Telkom's data growth story still has years to run: CEO

      Telkom’s data growth story still has years to run: CEO

      2 June 2026
      Why Telkom is pouring capex into IT - Serame Taukobong

      Why Telkom is pouring capex into IT

      2 June 2026
      Reserve Bank draws a line on inflation - Lesetja Kganyago. Siphiwe Sibeko/Reuters

      Reserve Bank draws a line on inflation

      2 June 2026

      Clashing judgments leave South Africa’s crypto law unsettled

      2 June 2026
      Telkom's four-year SIU standoff awaits a final ruling

      Telkom’s four-year SIU standoff awaits a final ruling

      2 June 2026
    • World
      Astronomers discover exoplanets with magnetic fields

      Strange winds reveal magnetic fields on distant ‘hot Jupiters’

      2 June 2026
      Nvidia's first CPUs to debut in Windows laptops this week

      Nvidia CPUs to debut in Windows laptops this week

      31 May 2026
      Watch: Bezos rocket erupts in fireball during ground test

      Watch: Bezos rocket erupts in fireball during ground test

      29 May 2026
      AI boom hands Samsung chip workers life-changing bonuses

      AI boom hands Samsung chip workers life-changing bonuses

      27 May 2026
      Luce lit: Ferrari unveils its first electric car

      Luce lit: Ferrari unveils its first electric car

      26 May 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
      AI, cybersecurity power standout year for Datatec - 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 | Charge's R1.8-billion bet on an off-grid EV future - Charge chairman Joubert Roux

      TCS | Charge’s R1.8-billion bet on an off-grid EV future

      18 May 2026
      TCS+ | The Up&Up Group on the hidden cost of AI - Jason Harrison

      TCS+ | The Up&Up Group on the hidden cost of AI

      13 May 2026
      Michael Rossouw

      TCS+ | The retirement decision most South Africans get wrong

      6 May 2026
      TCS | The Cape Town start-up listening for TB with AI - Braden van Breda

      TCS | The Cape Town start-up listening for TB with AI

      4 May 2026

      TCS+ | ‘The ISP for ISPs’: Vox’s shift to wholesale aggregator

      20 April 2026
    • Opinion
      Treasury's crypto crackdown is a betrayal of Mandela's promise - Duncan McLeod

      Treasury’s crypto crackdown is a betrayal of Mandela’s promise

      22 May 2026
      South Africa is sleepwalking into another AI policy failure - Celeste Labuschagne

      South Africa is sleepwalking into another AI policy failure

      20 May 2026
      AI won't fix your culture - it will expose it - Jackie Kennedy

      AI won’t fix your culture – it will expose it

      19 May 2026
      Treasury's crypto crackdown is a betrayal of Mandela's promise - 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
    • 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
      • 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 » Sections » Telecoms » If you want data prices to fall, give us spectrum: Vodacom

    If you want data prices to fall, give us spectrum: Vodacom

    By Duncan McLeod29 April 2019
    Twitter LinkedIn Facebook WhatsApp Email Telegram Copy Link
    News Alerts
    WhatsApp

    Vodacom said on Monday that “unquestionably the most significant obstacle to reducing input costs and, by extension, data prices is the fact that no new spectrum has been allocated” to operators for the past 14 years.

    Lengthy delays in completing the digital terrestrial television migration project and in allocating spectrum for 4G/LTE has “curbed the pace at which data prices could have fallen”.

    Vodacom was reacting to the Competition Commission’s provisional findings and recommendations following its data services market inquiry, the details of which were released last week. The commission accused Vodacom and MTN of charging significantly higher rates for data in South African than in other African countries in which they operate and for skewing their rates in such a way that they disadvantage the poor.

    The information used is outdated and doesn’t take into account hourly, daily, weekly and fortnightly bundles, which are 80% of our volume sales in prepaid offerings

    “High-demand spectrum — or what is often referred to as the ‘digital dividend’ spectrum — is in the 700-800MHz band and can only be allocated once the digital migration in South Africa is completed. This spectrum is called the ‘digital dividend’ because it is a highly efficient carrier of 4G signals. Having built a 4G network with over 90% population coverage using spectrum other than the digital dividend means, for example, that we have had to build significantly more towers at great expense. This increases input costs and was not an efficient method for allocating resources,” the company said.

    “A prime example of how timely allocation of spectrum at reasonable market-related terms can positively impact data prices is in neighbouring Lesotho, one of the first countries in the world to assign 5G spectrum,” Vodacom added. “The research used by the commission shows data prices in 2016 and 2017 when average data prices have dropped by 57% in the past three years. The information used is outdated and doesn’t take into account hourly, daily, weekly and fortnightly bundles, which are 80% of our volume sales in prepaid offerings.”

    ‘Critical aspects’

    Furthermore, it said the commission failed to take into account that countries used in its comparisons have already licensed 4G spectrum, which had the effect of “driving down the cost of producing a gigabyte of data”.

    “This underpins Vodacom’s view that an analysis of prices across different countries that does not take into account crucial aspects such as the amount of spectrum allocated, population coverage and network quality is not particularly useful as the cost of delivering mobile services varies considerably across countries,” it said.

    “Some of the costs are set by governments, including taxes, spectrum licence fees, import duties and rental fees for undersea cables. Others relate to the geographic size of a country, its population density and the availability of fixed-line infrastructure that connects mobile base stations with the rest of the network.”

    Vodacom said countries with large populations can leverage economies of scale. If the population is more urbanised, it also makes it easier to cover from an infrastructure perspective.

    “The cost of services in rural areas in particular is very high as this requires the funding of everything from access roads and diesel for generators, to microwave repeaters for connectivity. Often this rural infrastructure does not provide an economic return and it is, in effect, subsidised by urban areas. Despite these challenges, Vodacom provides 4G services to over 90% of the population at great expense. Timeous allocation of 4G spectrum would have aided tremendously in reducing these costs.”

    Vodacom said it will meet the commission’s deadline of 14 June to make further submissions. It will use this round of consultations to “provide accurate data, which does not seem to have been built into the provisional report”.  — © 2019 NewsCentral Media

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


    Competition Commission MTN top Vodacom
    WhatsApp YouTube
    Share. Facebook Twitter LinkedIn WhatsApp Telegram Email Copy Link
    Previous ArticleSouth Africans despise mobile operators, especially Vodacom
    Next Article Icasa files suit against communications minister over budget

    Related Posts

    Telkom's data growth story still has years to run: CEO

    Telkom’s data growth story still has years to run: CEO

    2 June 2026
    Telkom reports this Tuesday: the real story will be in the detail - Serame Taukobong

    Telkom reports this Tuesday: the real story will be in the detail

    31 May 2026
    SA telecoms industry veteran appointed to top Eskom job - Junaid Munshi

    SA telecoms industry veteran appointed to top Eskom job

    29 May 2026
    Company News
    The hidden infrastructure behind AI - Open Access Data Centres OADC

    The hidden infrastructure behind AI

    2 June 2026
    South Africa's R450 000 school fees problem has a tech answer - CambriLearn

    South Africa’s R450 000 school fees problem has a tech answer

    2 June 2026
    Addressing the 57% blind spot: Kaspersky on measuring SOC effectiveness

    Addressing the 57% blind spot: Kaspersky on measuring SOC effectiveness

    2 June 2026
    Opinion
    Treasury's crypto crackdown is a betrayal of Mandela's promise - Duncan McLeod

    Treasury’s crypto crackdown is a betrayal of Mandela’s promise

    22 May 2026
    South Africa is sleepwalking into another AI policy failure - Celeste Labuschagne

    South Africa is sleepwalking into another AI policy failure

    20 May 2026
    AI won't fix your culture - it will expose it - Jackie Kennedy

    AI won’t fix your culture – it will expose it

    19 May 2026

    Subscribe to Updates

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

    Latest Posts
    Telkom's data growth story still has years to run: CEO

    Telkom’s data growth story still has years to run: CEO

    2 June 2026
    Why Telkom is pouring capex into IT - Serame Taukobong

    Why Telkom is pouring capex into IT

    2 June 2026
    Reserve Bank draws a line on inflation - Lesetja Kganyago. Siphiwe Sibeko/Reuters

    Reserve Bank draws a line on inflation

    2 June 2026
    The hidden infrastructure behind AI - Open Access Data Centres OADC

    The hidden infrastructure behind AI

    2 June 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}