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
      MultiChoice scraps annual DStv price hikes for 2026 - David Mignot

      MultiChoice scraps annual DStv price hike

      20 February 2026
      What Gen Z really thinks about the tech world it inherited - Tinashe Mazodze

      What Gen Z really thinks about the tech world it inherited

      20 February 2026
      Showmax 'can't continue' in its current form

      Showmax ‘can’t continue’ in its current form

      20 February 2026
      Free Market Foundation slams treasury's proposed gambling tax

      Free Market Foundation slams treasury’s proposed gambling tax

      20 February 2026
      South Africa's dynamic spectrum breakthrough - Paul Colmer

      South Africa’s dynamic spectrum breakthrough

      20 February 2026
    • World
      Prominent Southern African journalist targeted with Predator spyware

      Prominent Southern African journalist targeted with Predator spyware

      18 February 2026
      More drama in Warner Bros tug of war

      More drama in Warner Bros tug of war

      17 February 2026
      Russia bans WhatsApp

      Russia bans WhatsApp

      12 February 2026
      EU regulators take aim at WhatsApp

      EU regulators take aim at WhatsApp

      9 February 2026
      Musk hits brakes on Mars mission

      Musk hits brakes on Mars mission

      9 February 2026
    • In-depth
      How liberalisation is rewiring South Africa's power sector

      How liberalisation is rewiring South Africa’s power sector

      21 January 2026
      The top-performing South African tech shares of 2025

      The top-performing South African tech shares of 2025

      12 January 2026
      Digital authoritarianism grows as African states normalise internet blackouts

      Digital authoritarianism grows as African states normalise internet blackouts

      19 December 2025
      TechCentral's South African Newsmakers of 2025

      TechCentral’s South African Newsmakers of 2025

      18 December 2025
      Black Friday goes digital in South Africa as online spending surges to record high

      Black Friday goes digital in South Africa as online spending surges to record high

      4 December 2025
    • TCS
      Watts & Wheels S1E4: 'We drive an electric Uber'

      Watts & Wheels S1E4: ‘We drive an electric Uber’

      10 February 2026
      TCS+ | How Cloud On Demand is helping SA businesses succeed in the cloud - Xhenia Rhode, Dion Kalicharan

      TCS+ | Cloud On Demand and Consnet: inside a real-world AWS partner success story

      30 January 2026
      Watts & Wheels S1E4: 'We drive an electric Uber'

      Watts & Wheels S1E3: ‘BYD’s Corolla Cross challenger’

      30 January 2026
      Watts & Wheels S1E4: 'We drive an electric Uber'

      Watts & Wheels S1E2: ‘China attacks, BMW digs in, Toyota’s sublime supercar’

      23 January 2026

      TCS+ | Why cybersecurity is becoming a competitive advantage for SA businesses

      20 January 2026
    • Opinion
      A million reasons monopolies don't work - Duncan McLeod

      A million reasons monopolies don’t work

      10 February 2026
      The author, Business Leadership South Africa CEO Busi Mavuso

      Eskom unbundling U-turn threatens to undo hard-won electricity gains

      9 February 2026
      South Africa's skills advantage is being overlooked at home - Richard Firth

      South Africa’s skills advantage is being overlooked at home

      29 January 2026
      Why Elon Musk's Starlink is a 'hard no' for me - Songezo Zibi

      Why Elon Musk’s Starlink is a ‘hard no’ for me

      26 January 2026
      A million reasons monopolies don't work - Duncan McLeod

      South Africa’s new fibre broadband battle

      20 January 2026
    • Company Hubs
      • Africa Data Centres
      • AfriGIS
      • Altron Digital Business
      • Altron Document Solutions
      • Altron Group
      • Arctic Wolf
      • AvertITD
      • Braintree
      • CallMiner
      • CambriLearn
      • CYBER1 Solutions
      • Digicloud Africa
      • Digimune
      • Domains.co.za
      • ESET
      • Euphoria Telecom
      • Incredible Business
      • iONLINE
      • IQbusiness
      • Iris Network Systems
      • LSD Open
      • Mitel
      • NEC XON
      • Netstar
      • Network Platforms
      • Next DLP
      • Ovations
      • Paracon
      • Paratus
      • Q-KON
      • SevenC
      • SkyWire
      • Solid8 Technologies
      • Telit Cinterion
      • 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
      • Information security
      • Internet and connectivity
      • Internet of Things
      • Investment
      • IT services
      • Lifestyle
      • Motoring
      • Public sector
      • Retail and e-commerce
      • Satellite communications
      • Science
      • SMEs and start-ups
      • Social media
      • Talent and leadership
      • Telecoms
    • Events
    • Advertise
    TechCentralTechCentral
    Home » Opinion » Duncan McLeod » Operators eye rural riches

    Operators eye rural riches

    By Editor25 August 2010
    Twitter LinkedIn Facebook WhatsApp Email Telegram Copy Link
    News Alerts
    WhatsApp

    [By Duncan McLeod]

    It’s long been government’s desire to bridge the digital divide, to get communications technology in the hands of the rural poor. But its every attempt to address the problem has failed. Now commercial operators may achieve what government couldn’t.

    The late Ivy Matsepe-Casaburri, the former communications minister, had her heart in the right place. She genuinely wanted people in underserviced areas to get access to the latest communications technology.

    Unfortunately, her distrust of the free market’s ability to deliver the goods through competition between private operators led her to create a number of poorly thought out schemes to bring access to the rural poor.

    First, she tried to get state-owned Sentech, the broadcast signal distributor, to build a wireless broadband network. We all know how that ended.

    Then she got the regulator, the Independent Communications Authority of SA, to license a handful of black-owned operators in the rural areas, but stifled them from the start by barring them from offering services in more profitable urban areas. Needless to say, the few that managed to get off the ground haven’t done particularly well.

    Matsepe-Casaburri’s initiatives were driven by the idea that the country’s commercial operators would never build infrastructure — particularly broadband networks — in rural areas. But every indication now is that the big ones are gearing up to do exactly that.

    MTN SA’s chief technology officer, Sameer Dave, told me last week about a plan the company has hatched to extend its third-generation (3G) mobile network to the country’s rural areas. He said MTN expects eventually to enjoy more demand for its broadband services from SA’s rural areas than from the relatively well-to-do urban market. That’s quite a statement.

    It’s worth talking a bit about how MTN plans to target the rural market. It will “refarm” a portion of its bandwidth allocation in the 900MHz band for 3G services. In layman’s language, it’s going to provide wireless broadband in a frequency band that will dramatically reduce costs and expand the coverage area around its base stations.

    Dave said MTN plans to extend the 3G network to the rural areas one region at a time. It will start with densely populated areas adjoining the cities, but will expand the infrastructure into more outlying areas, too.

    And it’s not the only operator eyeing potential riches in SA’s traditionally underserviced areas. Cell C is building a 900MHz 3G network and it, too, has identified the country’s more outlying areas as a future focus area. Then there’s Vodacom, which is investing in low-cost access devices, like cheap Linux-based netbooks and smartphones, as it tries to expand the number of South Africans using the Internet.

    These companies aren’t being altruistic. They see the opportunity to make money by building infrastructure in areas that haven’t traditionally had access to broadband.

    And their expansion to new markets is being driven by competition. Cell C is reinventing itself, building an advanced 3G network to try to take market share from its bigger rivals. This, together with the imminent launch of Telkom’s mobile business, is already making the market more competitive.

    Bringing high-speed connectivity to the country’s most outlying areas is likely to remain a challenge, however. It’s prohibitively expensive, for example, to extend fibre-optic cables across a country the size of SA.

    But it’s encouraging that these are the challenges now exercising minds at SA’s mobile operators. Universal access is not something that will happen overnight, but the commercial operators could go a long way in bridging the divide — and disproving Matsepe-Casaburri’s assumptions about the free market.

    • Duncan McLeod is editor of TechCentral; this column is also published in Financial Mail
    • Subscribe to our free daily newsletter
    • Follow us on Twitter or on Facebook
    Follow TechCentral on Google News Add TechCentral as your preferred source on Google


    Duncan McLeod Icasa MTN Sameer Dave Telkom Vodacom
    WhatsApp YouTube
    Share. Facebook Twitter LinkedIn WhatsApp Telegram Email Copy Link
    Previous ArticleTelkom under fire over corporate governance
    Next Article VoiceSA to explore telecoms opportunities

    Related Posts

    South Africa's dynamic spectrum breakthrough - Paul Colmer

    South Africa’s dynamic spectrum breakthrough

    20 February 2026
    MTN to buy back its own towers in R35-billion deal - Ralph Mupita

    MTN to buy back its own cellular towers in R35-billion deal

    17 February 2026
    Icasa gears up for South Africa's next big spectrum auction - Tshiamo Maluleka-Disemelo

    Icasa gears up for South Africa’s next big spectrum auction

    17 February 2026
    Company News
    Service is everyone's problem now - and that's exactly why the Atlassian Service Collection matters

    Service is everyone’s problem now – why the Atlassian Service Collection matters

    20 February 2026
    Customers have new expectations. Is your CX ready? 1Stream

    Customers have new expectations. Is your CX ready?

    19 February 2026
    South Africa's cybersecurity challenge is not a tool problem - Nicholas Applewhite, Trinexia South Africa

    South Africa’s cybersecurity challenge is not a tool problem

    19 February 2026
    Opinion
    A million reasons monopolies don't work - Duncan McLeod

    A million reasons monopolies don’t work

    10 February 2026
    The author, Business Leadership South Africa CEO Busi Mavuso

    Eskom unbundling U-turn threatens to undo hard-won electricity gains

    9 February 2026
    South Africa's skills advantage is being overlooked at home - Richard Firth

    South Africa’s skills advantage is being overlooked at home

    29 January 2026

    Subscribe to Updates

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

    Latest Posts
    MultiChoice scraps annual DStv price hikes for 2026 - David Mignot

    MultiChoice scraps annual DStv price hike

    20 February 2026
    What Gen Z really thinks about the tech world it inherited - Tinashe Mazodze

    What Gen Z really thinks about the tech world it inherited

    20 February 2026
    Showmax 'can't continue' in its current form

    Showmax ‘can’t continue’ in its current form

    20 February 2026
    Free Market Foundation slams treasury's proposed gambling tax

    Free Market Foundation slams treasury’s proposed gambling tax

    20 February 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}