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
      Cell C launches 5G

      Cell C launches 5G

      21 August 2026
      MVNOs are doing the heavy lifting at Cell C - Jorges Mendes

      MVNOs are doing the heavy lifting at Cell C

      21 August 2026
      Hot rand is cold comfort for tech buyers

      Hot rand is cold comfort for tech buyers

      21 August 2026
      Joburg says it has bought its way out of an Eskom blackout

      Joburg says it has bought its way out of an Eskom blackout

      21 August 2026
      Management consulting as we know it is over

      Management consulting as we know it is over

      21 August 2026
    • World
      Russia building its own Starlink - and faster than expected - Vadym Skibitskyi

      Russia building its own Starlink – and faster than expected

      11 August 2026
      Meta AI will now tell parents if their teen is in crisis

      Meta AI will now tell parents if their teen is in crisis

      17 July 2026
      IBM shares crash 25% as AI upends software spending - Arvind Krishna

      IBM shares crash 25% as AI upends software spending

      15 July 2026
      Jony Ive's first OpenAI device: an AI smart speaker - Jony Ive and Sam Altman

      Jony Ive’s first OpenAI device: an AI smart speaker

      15 July 2026
      Stripe, Advent in talks to buy PayPal for $53-billion

      Stripe, Advent in talks to buy PayPal for $53-billion

      15 July 2026
    • In-depth
      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
      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
    • TCS
      Meet the CIO | Discovery's Derek Wilcocks on AI, guardrails and growth

      Meet the CIO | Derek Wilcocks on how AI personalised Vitality

      13 August 2026
      TCS | Money just became native to the internet - Steven Boykey Sidley

      TCS | Money just became native to the internet – Steven Boykey Sidley

      12 August 2026
      TCS+ | Specops' Darren James on continuous trust in an AI world

      TCS+ | Specops’ Darren James on continuous trust in an AI world

      7 August 2026
      TCS+ | How AI is turning hardware into a subscription service - Shane van der Merwe Merchant West

      TCS+ | How AI is turning hardware into a subscription service

      6 August 2026
      TCS+ | Why South African workers must become supervisors of digital labour - Accelera Digital Group Cliff de Wit

      TCS+ | Why South African workers must become supervisors of digital labour

      31 July 2026
    • Opinion
      The author, Jannie van Zyl

      Selling vapour is corporate suicide in slow motion

      16 July 2026
      Brazil's online gambling crackdown is a lesson for South Africa

      How Amazon outmanoeuvred Starlink in South Africa

      15 July 2026
      The Popia problem with agentic AI - Herman Haasbroek

      The Popia problem with agentic AI

      14 July 2026
      The author, Fanie van Rooyen

      South Africa can still catch the AI wave – here’s how

      7 July 2026
      The author, Fanie van Rooyen

      The AI utopia South Africa can’t afford

      1 July 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
      • 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 » 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

    Cell C launches 5G

    Cell C launches 5G

    21 August 2026
    MVNOs are doing the heavy lifting at Cell C - Jorges Mendes

    MVNOs are doing the heavy lifting at Cell C

    21 August 2026
    Hot rand is cold comfort for tech buyers

    Hot rand is cold comfort for tech buyers

    21 August 2026
    Company News
    Paratus Uganda first to market with Starlink service

    Paratus Uganda first to market with Starlink service

    21 August 2026
    Smarter operations take centre stage at Electra Mining Africa 2026

    Smarter operations take centre stage at Electra Mining Africa 2026

    20 August 2026
    Fidelity turns to Sigfox to spot fires before they start

    Fidelity turns to Sigfox to spot fires before they start

    19 August 2026
    Opinion
    The author, Jannie van Zyl

    Selling vapour is corporate suicide in slow motion

    16 July 2026
    Brazil's online gambling crackdown is a lesson for South Africa

    How Amazon outmanoeuvred Starlink in South Africa

    15 July 2026
    The Popia problem with agentic AI - Herman Haasbroek

    The Popia problem with agentic AI

    14 July 2026

    Subscribe to Updates

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

    Latest Posts
    Cell C launches 5G

    Cell C launches 5G

    21 August 2026
    MVNOs are doing the heavy lifting at Cell C - Jorges Mendes

    MVNOs are doing the heavy lifting at Cell C

    21 August 2026
    Hot rand is cold comfort for tech buyers

    Hot rand is cold comfort for tech buyers

    21 August 2026
    Joburg says it has bought its way out of an Eskom blackout

    Joburg says it has bought its way out of an Eskom blackout

    21 August 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}