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
      Dina Pule, who oversaw Telkom crisis, is back in cabinet

      Dina Pule, who oversaw Telkom crisis, is back in cabinet

      1 July 2026
      Google plots E Cape as southern anchor of four-hub Africa network - Alex Okosi

      Google plots E Cape as southern anchor of four-hub Africa network

      1 July 2026
      Frontier AI has broken the old rules of cyber defence, warns Palo Alto CIO

      Frontier AI has broken the old rules of cyber defence, warns Palo Alto CIO

      1 July 2026
      Big change at top of Tarsus Distribution - Emile Burger

      Big change at top of Tarsus Distribution

      1 July 2026
      The AI utopia South Africa can't afford

      The AI utopia South Africa can’t afford

      1 July 2026
    • World

      SK Hynix ends Samsung’s 26-year reign at the top

      22 June 2026
      Google on the hook for what its AI tells users, court rules

      Google on the hook for what its AI tells users, court rules

      15 June 2026
      How Russians juggle VPNs to outwit the Kremlin

      How Russians juggle VPNs to outwit the Kremlin

      15 June 2026
      Amazon CEO flagged Anthropic AI risks to Washington - Andy Jassy

      Amazon CEO flagged Anthropic AI risks to Washington

      14 June 2026
      Trouble at Xbox

      Trouble at Xbox

      11 June 2026
    • In-depth
      AI boom sparks rally, frenzy and fear

      AI boom sparks rally, frenzy and fear

      11 June 2026
      Every plug-in hybrid on sale in South Africa, ranked by price - Lamborghini Temerario

      Every plug-in hybrid on sale in South Africa, ranked by price

      7 June 2026
      What Wi-Fi 8 will mean for wireless networks

      What Wi-Fi 8 will mean for wireless networks

      1 June 2026
      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
    • TCS
      TCS+ | How Tracker is turning vehicle data into business strategy - Silvia Schollenberger

      TCS+ | How Tracker is turning vehicle data into business strategy

      1 July 2026
      TCS+ | IBM Bob: an AI-powered 'development partner' for the enterprise - David Spurway

      TCS+ | IBM Bob: an AI-powered development partner for the enterprise

      30 June 2026
      Watts & Wheels S1E6: 'A flawless Alfa and a bakkie that divides'

      Watts & Wheels S1E6: ‘A flawless Alfa and a bakkie that divides’

      17 June 2026
      Watts & Wheels S1E6: 'A flawless Alfa and a bakkie that divides'

      Watts & Wheels S1E5: ‘A Bentley of the bush and a car that swims’

      8 June 2026
      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
    • Opinion
      The author, Jannie van Zyl

      South Africa’s broadband future is being decided in orbit, not in Pretoria

      30 June 2026
      The pivot South Africa's MVNOs cannot afford to miss

      The pivot South Africa’s MVNOs cannot afford to miss

      23 June 2026
      Brazil's online gambling crackdown is a lesson for South Africa

      Brazil’s online gambling crackdown is a lesson for South Africa

      22 June 2026
      Finish the job Mandela started - Farzam Ehsani

      Finish the job Mandela started

      18 June 2026
      The author, Fanie van Rooyen

      The US just showed it can switch off our AI

      17 June 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 » In-depth » NPC advocates spectrum trading, free markets

    NPC advocates spectrum trading, free markets

    By Editor11 November 2011
    Twitter LinkedIn Facebook WhatsApp Email Telegram Copy Link
    News Alerts
    WhatsApp
    Trevor Manuel

    The National Planning Commission’s long-awaited National Development Plan for 2030, handed to President Jacob Zuma on Friday, has come out strongly in favour of market competition in the telecommunications industry, advocating spectrum trading and raising the idea of structurally separating Telkom into two businesses.

    The 430-page document, which deals with every sector of the economy and makes far-reaching proposals to eradicate poverty and set the country on a higher growth path, is forthright when it comes to the problems affecting the information and communications technology (ICT) industry and recommends a range of largely market-friendly interventions to maximise the potential of the sector.

    The commission is headed by minister in the presidency Trevor Manuel and consists of 26 people appointed by Zuma to advise on issues impacting on long-term development in SA.

    The report raises the possibility of separating Telkom’s facilities (networks) and services businesses to facilitate competition in the fixed-line market, saying the operator’s “dominance” as the “historical incumbent in the backbone and local access markets” has been “relatively inefficiently regulated and has resulted in very high input costs for business, increasing the cost of services”.

    This, the report says, has “inhibited investment in growth areas within ICT such as business process outsourcing and offshore IT-enabled services”. It points to the BT Group (formerly British Telecom) example, where the UK regulator (now Ofcom) forced BT to spin off management of its access network into a separate company called Openreach. The commissions describes this as a “successful” model.

    It proposes a review of the market structure and an analysis of the benefits and costs of infrastructure duplication, facilities- or service-based competition, and options for infrastructure sharing. It talks about the possibility of “structural separation of the vertically integrated incumbent backbone operator”.

    Open-access policies are mooted, where sharing of infrastructure is incentivised “without discouraging private long-term investment”.

    The report raises the “structural conflict of interest” between the state’s role as a competitive player in the market through its shareholding in Telkom and as a policy maker for itself and its competitors. It advocates “better distinction of roles and functions, more coherent approaches and clearer strategies” to avoid “unintended policy outcomes”.

    It also wants a review of state-owned enterprises in the sector to determine if they are “fulfilling their purposes, constraining competition, squeezing out private investment or not engaged in efficient expansion”.

    “SA needs to express an unambiguous commitment to intensifying competition,” the report says. “As one element of this, local-loop unbundling needs to be speeded up.”

    In future, it says, the state’s “primary role in the ICT sector will be to facilitate competition and private investment and to ensure effective regulation where market failure is apparent”.

    “Direct involvement [by government] will be limited to interventions needed to ensure universal access, such as the introduction of ‘smart subsidies’, and to help marginalised communities develop the capacity to use ICTs effectively.”

    The commission says the so-called “digital divide” can be addressed partially through “more competitive (efficient) markets and effective regulation that enable operators to meet the demand for affordable services, reducing the number of households or individuals requiring support”.

    It says further strategies that promote access through “smart subsidies” should be a “once-off intervention” rather than requiring permanent subsidies.

    The commission’s report says there are a number of areas that need attention, including adjusting market structures and removing legal constraints to allow for full competition in services. It also wants a review of “institutional arrangements” to ensure regulatory agencies are sufficiently resourced to encourage new competitors and ensure fair competition and to regulate market failure.

    Spectrum should also be made available “urgently” for next-generation services, though some could be allocated with “set-asides or obligations to overcome historical legacies and inequalities in the sector”. However, this should “not delay its competitive allocation”.

    The spectrum that will become available through the migration from analogue to digital terrestrial television should also be “swiftly allocated”.

    “Mechanisms for allocating radio frequency spectrum need to be smarter — for example, spectrum auctions and reverse bids for underserviced areas — with robust and transparent governance,” the report says. “Spectrum should be fully tradeable once allocated.”

    In addition, regulations should be crafted to “discourage spectrum hoarding”.

    “Spectrum policy should favour competition, but incumbents should not be excluded from gaining access to bands they need to build networks using new technologies,” it continues. “In line with global trends, spectrum licences should be technology neutral, so they can be adapted to meet rapidly changing technological developments within the sector without high regulatory costs.”

    The commission’s report paints a poor picture of the state’s attempts to intervene in the sector, saying “most state interventions in the ICT sector have been disappointing” with SA losing its status as “continental leader in Internet and broadband connectivity”.

    “Policy constraints, weaknesses in institutional arrangements, conflicting policies between responsible departments, regulatory failure and limited competition all contribute to this issue,” it says. “The ability of the regulator, the Independent Communications Authority of SA, to enable a more open market has been hampered by legal bottlenecks [and] limited capacity and expertise.”

    The report says the last comprehensive policy review of the sector happened in 1996, and a new review is urgently required.  — Duncan McLeod, TechCentral

    • Subscribe to our free daily newsletter
    • Follow us on Twitter or on Facebook
    • Visit our sister website, SportsCentral (still in beta)
    Follow TechCentral on Google News Add TechCentral as your preferred source on Google


    Icasa Jacob Zuma National Planning Commission Telkom Trevor Manuel
    WhatsApp YouTube
    Share. Facebook Twitter LinkedIn WhatsApp Telegram Email Copy Link
    Previous ArticleGov’t under fire over EC Act amendments
    Next Article The SA Internet turns 20

    Related Posts

    Dina Pule, who oversaw Telkom crisis, is back in cabinet

    Dina Pule, who oversaw Telkom crisis, is back in cabinet

    1 July 2026
    The author, Jannie van Zyl

    South Africa’s broadband future is being decided in orbit, not in Pretoria

    30 June 2026
    Icasa's blunt message to Starlink and other satellite operators

    Icasa’s blunt message to Starlink and other satellite operators

    29 June 2026
    Company News
    A dead MacBook is a business problem - iAssist Apple Repairs

    A dead MacBook is a business problem

    1 July 2026
    7 tips to optimise your e-commerce website - Domains.co.za

    7 tips to optimise your e-commerce website

    1 July 2026
    A smarter switch for networks that can't afford to fail

    A smarter switch for networks that can’t afford to fail

    30 June 2026
    Opinion
    The author, Jannie van Zyl

    South Africa’s broadband future is being decided in orbit, not in Pretoria

    30 June 2026
    The pivot South Africa's MVNOs cannot afford to miss

    The pivot South Africa’s MVNOs cannot afford to miss

    23 June 2026
    Brazil's online gambling crackdown is a lesson for South Africa

    Brazil’s online gambling crackdown is a lesson for South Africa

    22 June 2026

    Subscribe to Updates

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

    Latest Posts
    Dina Pule, who oversaw Telkom crisis, is back in cabinet

    Dina Pule, who oversaw Telkom crisis, is back in cabinet

    1 July 2026
    Google plots E Cape as southern anchor of four-hub Africa network - Alex Okosi

    Google plots E Cape as southern anchor of four-hub Africa network

    1 July 2026
    Frontier AI has broken the old rules of cyber defence, warns Palo Alto CIO

    Frontier AI has broken the old rules of cyber defence, warns Palo Alto CIO

    1 July 2026
    Big change at top of Tarsus Distribution - Emile Burger

    Big change at top of Tarsus Distribution

    1 July 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}