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
      Namibia tells Starlink to take a hike - again

      Namibia tells Starlink to take a hike – again

      22 June 2026
      Joburg the epicentre of South Africa's tech brain drain

      Joburg the epicentre of South Africa’s tech brain drain

      22 June 2026
      South Africa went cashless - except for the millions who didn't

      South Africa went cashless – except for the millions who didn’t

      22 June 2026
      That drone over your house is almost certainly breaking the law

      That drone over your house is almost certainly breaking the law

      22 June 2026
      DStv Stream to come pre-installed on Samsung TVs across Africa

      DStv Stream to come pre-installed on Samsung TVs across Africa

      22 June 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
      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
      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
    • Opinion
      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
      The clock is ticking on South African banks' biggest advantage - Pambos Soteriades

      The clock is ticking on South African banks’ biggest advantage

      9 June 2026

      Clashing judgments leave South Africa’s crypto law unsettled

      2 June 2026
      The clock is ticking on South African banks' biggest advantage - Pambos Soteriades

      The trap inside South Africa’s banking MVNO boom

      1 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 » Opinion » Duncan McLeod » Padayachie’s promising start

    Padayachie’s promising start

    By Editor2 March 2011
    Twitter LinkedIn Facebook WhatsApp Email Telegram Copy Link
    News Alerts
    WhatsApp

    [By Duncan McLeod]

    Communications minister Roy Padayachie’s meeting on Friday with executives of 30 of SA’s largest technology companies was well received. It has helped establish a much-needed discourse between government and the private sector. What happens next will be much harder.

    Padayachie’s predecessor but one, Ivy Matsepe-Casaburri, mollycoddled companies in her portfolio, including Sentech and Telkom, refusing to veer from her failed policy of “managed liberalisation” (code words for protectionism). Only when technology company Altech challenged her in court — and won — was the telecommunications sector prised open to more competition. On her watch, established licensees were protected for too long, keeping prices high and undermining new investment in telecoms infrastructure.

    Fortunately, the industry has undergone dramatic changes since Altech’s court victory. Now, under Padayachie, the potential exists for further significant improvements.

    Government’s focus remains on taking telecoms infrastructure into rural and underserviced areas. And rightly so; World Bank research shows expanding teledensity has a direct impact on economic growth.

    The question is how to get there. Left-leaning politicians and trade unionists often lament how SA’s private sector has failed to deliver telecoms services to all. Matsepe-Casaburri’s answer to this perceived failure was to grant valuable licences to state-owned broadcasting signal distributor Sentech to establish a wireless broadband network. But Sentech, after squandering hundreds of millions of rand of taxpayers’ money, was forced to exit the market after demonstrating that it was incapable of competing with rivals such as MTN, Telkom and Vodacom.

    Then former public enterprises minister Alec Erwin, frustrated that his cabinet colleague had failed to do anything to bring down broadband prices, also turned to state machinery to try to deal with the problem. The result was Broadband Infraco, a state-owned wholesale infrastructure provider. Infraco is now plagued by allegations of corruption and its CEO, Dave Smith, resigned last week just months after the company began offering services commercially.

    Now Padayachie wants Sentech and Infraco to work together to provide telecoms services to marginalised areas. Unfortunately, this represents a continuation of the same failed ideological thinking of Erwin and Matsepe-Casaburri: that government is better able to deliver telecoms services to everyone than commercial enterprise.

    There’s no doubt that the state has a role to play in directing policy, encouraging competition, and even directing funds to infrastructure development where it’s simply not profitable for commercial operators to provide services. But setting up the state to compete with private operators is a dreadful idea. Private companies, competing in an efficient and open market (those last few words are key), will always deliver a better outcome than a lumbering state-owned enterprise.

    So, Padayachie’s meeting with private enterprise this week — and his apparent willingness to consider all sides of the argument — is encouraging. Half the battle for government is convincing private investors, put off by years of policy failure by the state, that they have the same basic objectives.

    Last week’s meeting appeared to go a long way in doing that. Government and industry do want the same basic outcome: a competitive and efficient market, a sound regulatory and policy environment that provides certainty to investors, and, ultimately, universal and affordable telecoms services.

    Friday’s toenadering between government and industry is an important step. What must be decided now is the best way of getting to the destination. Over that, the dust is far from settled.

    • 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


    Alec Erwin Altech Broadband Infraco Duncan McLeod Ivy Matsepe-Casaburri MTN Roy Padayachie Sentech Telkom Vodacom
    WhatsApp YouTube
    Share. Facebook Twitter LinkedIn WhatsApp Telegram Email Copy Link
    Previous ArticleNamibia gets tough on mobile tariffs
    Next Article Malware: the menace in your mobile

    Related Posts

    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
    GSMA tells Africa to copy South Africa on devices

    GSMA tells Africa to copy South Africa on devices

    17 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
    Company News
    A smarter way to buy or renew your Red Hat subscriptions - LSD Open

    A smarter way to buy or renew your Red Hat subscriptions

    22 June 2026
    Moving past the pilot: inside the CloudZA and AWS closed-door AI executive roundtable

    CloudZA and AWS chart the road from AI pilots to production

    19 June 2026
    The role of edge infrastructure in South Africa's AI leap - OADC Open Access Data Centres

    The role of edge infrastructure in South Africa’s AI leap

    19 June 2026
    Opinion
    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
    The clock is ticking on South African banks' biggest advantage - Pambos Soteriades

    The clock is ticking on South African banks’ biggest advantage

    9 June 2026

    Subscribe to Updates

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

    Latest Posts
    Namibia tells Starlink to take a hike - again

    Namibia tells Starlink to take a hike – again

    22 June 2026
    Joburg the epicentre of South Africa's tech brain drain

    Joburg the epicentre of South Africa’s tech brain drain

    22 June 2026
    South Africa went cashless - except for the millions who didn't

    South Africa went cashless – except for the millions who didn’t

    22 June 2026
    That drone over your house is almost certainly breaking the law

    That drone over your house is almost certainly breaking the law

    22 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}