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
      Global PHP scramble reaches the Union Buildings

      Global PHP scramble reaches the Union Buildings

      23 October 2026
      Rand Mutual Assurance probes alleged theft of 1.68 million claim records

      Rand Mutual Assurance probes alleged theft of 1.68 million claim records

      23 October 2026
      The roof that powers two malls and an office park

      The roof that powers two malls and an office park

      23 October 2026
      Openserve, Huawei test fibre-ready state housing in KZN

      Openserve, Huawei test fibre-ready state housing in KZN

      23 October 2026
      Anthropic's IPO stands alone

      Anthropic’s IPO stands alone

      23 October 2026
    • World
      OpenAI turns the tables on Apple in trade secrets fight

      OpenAI turns the tables on Apple in trade secrets fight

      15 October 2026
      Google's Gemini 4 Argon is finally here

      Google’s Gemini 4 Argon is finally here

      14 October 2026
      Apple's new HomeView smart home hub

      Apple takes another shot at the smart home

      13 October 2026
      AI

      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
    • 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
      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
      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
    • Opinion
      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
      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
    • 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 » Opinion » Duncan McLeod » Let’s not build another monopoly

    Let’s not build another monopoly

    By Duncan McLeod20 February 2017
    Twitter LinkedIn Facebook WhatsApp Email Telegram Copy Link
    Get breaking news on WhatsApp

    There is a prevailing view in government — or certainly in the department of telecommunications & postal services — that infrastructure competition in providing broadband is bad.

    Nothing could be further from the truth.

    At a meeting on Friday with industry players, telecoms minister Siyabonga Cwele said that government’s national integrated ICT policy white paper — which sets out proposed policy for the ICT sector for the next decade — states clearly that competition is good, but that it must be based on services.

    The idea is that infrastructure competition is a waste of money, that duplication of networks makes no sense. In fact, rivalry between infrastructure providers is crucial to ensuring South Africa doesn’t become an also-ran in ICT. It is the building of a single wholesale network to the exclusion of all other models — as proposed in the white paper — that’s the terrible idea, the one that is very likely to cost us dearly as a nation.

    Without proper interrogation, the idea of a single national network might appear to make some sort of sense. After all, South Africa is not a rich country: can it afford to duplicate networks? It’s more sensible, advocates of a single network model will argue, for operators to pool their investments, reducing their costs in the process and passing on those benefits to end users. Nice in theory.

    But there are a myriad problems with creating a single national network, or Woan (wholesale open-access network) as government calls it.

    Firstly, and most obviously, the state, in effect, wants to create a new infrastructure monopoly. Has it not learnt its lesson from the 1990s, when Telkom — granted a legislated monopoly — rode roughshod over both competitors and consumers?

    Ah, but government will argue, the Woan is different. It’s open access, meaning (in theory) that anyone can use it, and, anyway, the real need is for competition at the services level rather than at the infrastructure layer.

    But what if the Woan — which, in terms of the proposed policy, will get access to all future “high-demand” spectrum assignments — chooses a technology that fails to take off in the rest of the world (remember WiMax, Dr Cwele?). If there are multiple infrastructure providers, other network operators might choose to invest in different technologies. There are then alternatives. The Woan’s failure to invest in the right technology might doom it, but at least it won’t take the whole country down with it.

    And then there’s the fact that monopolies — no matter how well-intentioned they might be — are inefficient. Even with multiple shareholders, what incentive will the Woan have to provide access at the lowest cost? Competition keeps prices in check, not regulators. If government expects to keep the Woan’s prices down through regulation, then it should ask the industry how successful Icasa and its predecessor Satra were at keeping Telkom’s prices in check between 1995 and 2005.

    I’m not saying that there should be a complete duplication of infrastructure in all cases. It makes no sense, for example, for 10 companies to dig up the same suburb to provide fibre to the home. And having every operator building fibre between Johannesburg and Cape Town is equally nonsensical. But it should be up to the market to decide where duplication makes sense and where it doesn’t. When money is involved, operators will tend to eschew duplication of basic infrastructure like fibre sleeves and phone towers. This is especially true in an environment where margins are under pressure.

    A key principle behind the white paper and the proposed Woan is that smaller industry players will be able to invest in infrastructure. This is where the concept makes some sense, provided it’s not done to the exclusion of alternative network infrastructure.

    Government, through Icasa, could reserve a chunk of spectrum (by no means all of it) for a multi-shareholder consortium made up of smaller industry players interested in participating (government should not be one of the shareholders).

    Such a network could provide the price competition that government is seeking, without damaging the sector through the creation of a new infrastructure monopoly.

    Vodacom, MTN, Telkom, Cell C and other interested network operators should still be able to get access to exclusive-use spectrum, but a (reasonable) portion of sub-900MHz (digital dividend) spectrum, and perhaps some spectrum at 2,6GHz (for use in denser urban areas), could be set aside for smaller players outside an expensive spectrum auction process.

    Beyond that regulatory “favour”, however, investors in the new network should compete with the big boys on the network’s merits. Too much regulation distorts markets and leads to unintended outcomes. The market, for the most part, should be left to sort itself out.

    At the same time, to expand coverage in rural areas, a spectrum auction for the big players should require them to reach certain rural roll-out targets (defined by Icasa and based on a proper study) before they’re allowed to use the newly allocated spectrum in the cities. Germany did this to great effect; there’s no reason to believe it won’t work here.

    For the sake of the industry and consumers — and the broader economy — let’s not experiment with an all-or-nothing model that hasn’t been tested successfully anywhere else in the world (oft-quoted examples Mexico and Rwanda have not had demonstrable successes with similar approaches). Monopolies — including the open-access wholesale kind — should be rejected because, in the long term, they will do much more harm than good.

    • Duncan McLeod is editor of TechCentral. Find him on Twitter
    Add TechCentral as a preferred source on GoogleFollow TechCentral on Google NewsGet breaking news on WhatsApp


    Cell C Duncan McLeod MTN Siyabonga Cwele Telkom Vodacom
    WhatsApp YouTube
    Share. Facebook Twitter LinkedIn WhatsApp Telegram Email Copy Link
    Previous ArticleBig growth in online shopping in SA
    Next Article Zuma, Gordhan battle takes centre stage

    Related Posts

    Openserve, Huawei test fibre-ready state housing in KZN

    Openserve, Huawei test fibre-ready state housing in KZN

    23 October 2026
    Malatsi asks Icasa to rewrite network-sharing rules

    Malatsi asks Icasa to rewrite network-sharing rules

    22 October 2026
    Vodacom pitches a lighter AI rulebook as Pretoria redraws its policy

    Vodacom pitches a lighter AI rulebook as Pretoria redraws its policy

    21 October 2026
    Company News
    Stop turning CEOs into content creators - Natania Pio

    Stop turning CEOs into content creators

    23 October 2026
    Innovex 2026: taking opportunity to where potential lives

    Innovex 2026: taking opportunity to where potential lives

    21 October 2026
    How to choose a .co.za domain without paying more later

    How to choose a .co.za domain without paying more later

    20 October 2026
    Opinion
    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

    Subscribe to Updates

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

    Latest Posts
    Global PHP scramble reaches the Union Buildings

    Global PHP scramble reaches the Union Buildings

    23 October 2026
    Rand Mutual Assurance probes alleged theft of 1.68 million claim records

    Rand Mutual Assurance probes alleged theft of 1.68 million claim records

    23 October 2026
    The roof that powers two malls and an office park

    The roof that powers two malls and an office park

    23 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
    © 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