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
      Big Microsoft 365 price increases coming next year

      Big Microsoft price increases coming next year

      5 December 2025
      Vodacom to take control of Safaricom in R36-billion deal - Shameel Joosub

      Vodacom to take control of Safaricom in R36-billion deal

      4 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
      BYD takes direct aim at Toyota with launch of sub-R500 000 Sealion 5 PHEV

      BYD takes direct aim at Toyota with launch of sub-R500 000 Sealion 5 PHEV

      4 December 2025
      'Get it now': Takealot in new instant deliveries pilot

      ‘Get it now’: Takealot in new instant deliveries pilot

      4 December 2025
    • World
      Amazon and Google launch multi-cloud service for faster connectivity

      Amazon and Google launch multi-cloud service for faster connectivity

      1 December 2025
      Google makes final court plea to stop US breakup

      Google makes final court plea to stop US breakup

      21 November 2025
      Bezos unveils monster rocket: New Glenn 9x4 set to dwarf Saturn V

      Bezos unveils monster rocket: New Glenn 9×4 set to dwarf Saturn V

      21 November 2025
      Tech shares turbocharged by Nvidia's stellar earnings

      Tech shares turbocharged by stellar Nvidia earnings

      20 November 2025
      Config file blamed for Cloudflare meltdown that disrupted the web

      Config file blamed for Cloudflare meltdown that disrupted the web

      19 November 2025
    • In-depth
      Jensen Huang Nvidia

      So, will China really win the AI race?

      14 November 2025
      Valve's Linux console takes aim at Microsoft's gaming empire

      Valve’s Linux console takes aim at Microsoft’s gaming empire

      13 November 2025
      iOCO's extraordinary comeback plan - Rhys Summerton

      iOCO’s extraordinary comeback plan

      28 October 2025
      Why smart glasses keep failing - no, it's not the tech - Mark Zuckerberg

      Why smart glasses keep failing – it’s not the tech

      19 October 2025
      BYD to blanket South Africa with megawatt-scale EV charging network - Stella Li

      BYD to blanket South Africa with megawatt-scale EV charging network

      16 October 2025
    • TCS
      TCS+ | How Cloud on Demand helps partners thrive in the AWS ecosystem - Odwa Ndyaluvane and Xenia Rhode

      TCS+ | How Cloud On Demand helps partners thrive in the AWS ecosystem

      4 December 2025
      TCS | MTN Group CEO Ralph Mupita on competition, AI and the future of mobile

      TCS | Ralph Mupita on competition, AI and the future of mobile

      28 November 2025
      TCS | Dominic Cull on fixing South Africa's ICT policy bottlenecks

      TCS | Dominic Cull on fixing South Africa’s ICT policy bottlenecks

      21 November 2025
      TCS | BMW CEO Peter van Binsbergen on the future of South Africa's automotive industry

      TCS | BMW CEO Peter van Binsbergen on the future of South Africa’s automotive industry

      6 November 2025
      TCS | Why Altron is building an AI factory - Bongani Andy Mabaso

      TCS | Why Altron is building an AI factory in Johannesburg

      28 October 2025
    • Opinion
      Your data, your hardware: the DIY AI revolution is coming - Duncan McLeod

      Your data, your hardware: the DIY AI revolution is coming

      20 November 2025
      Zero Carbon Charge founder Joubert Roux

      The energy revolution South Africa can’t afford to miss

      20 November 2025
      It's time for a new approach to government IT spend in South Africa - Richard Firth

      It’s time for a new approach to government IT spend in South Africa

      19 November 2025
      How South Africa's broken Rica system fuels murder and mayhem - Farhad Khan

      How South Africa’s broken Rica system fuels murder and mayhem

      10 November 2025
      South Africa's AI data centre boom risks overloading a fragile grid - Paul Colmer

      South Africa’s AI data centre boom risks overloading a fragile grid

      30 October 2025
    • 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
      • 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 » Sections » Telecoms » Red tape is throttling South Africa’s towerco industry

    Red tape is throttling South Africa’s towerco industry

    Higher coverage levels are threatened by permitting regimes and possible overbuild, according to a new white paper.
    By Nkosinathi Ndlovu30 May 2024
    Twitter LinkedIn Facebook WhatsApp Email Telegram Copy Link
    News Alerts
    WhatsApp

    South Africa’s independent tower companies are lowering the cost of tower deployment and management for mobile network operators. The effect is an increase in the breadth and quality of coverage. But onerous regulatory requirements are threatening the growth of the industry.

    This is according to Raul Katz, president of industry specialist consultancy firm Telecoms Advisory Services, and co-author of the white paper “The Independent Tower Industry as a Key Enabler of the Development of African Telecommunications”.

    “The key risk is that the time it takes from when an operator says, ‘I need a tower in this particular location’, to when it gets the permits to build that tower, is often too long. The tower operator has to go through national and municipal approvals, which are very extensive,” said Katz.

    We’ve seen cases where the timing between the need to deploy and the actual deployment is about two years

    “We’ve seen cases in South Africa where the timing between the need to deploy and the actual deployment is about two years.”

    According to Katz, a lack of rationalisation in policy objectives between national and municipal governments is a major stumbling block in the permitting process. Also contributing to long lead times is the lack of a unified permitting regime that consolidates the various departments from which approvals must be sought.

    “Often there are processes that operators or infrastructure providers have to comply with that are not concentrated within a single entity. For example, there are environmental permits, public consultation processes, infrastructure sizing and compliance with tourist zones, among others, that are also linked to the administrative response of the competent authority within a time interval that delays the construction of the sites,” said the white paper (PDF).

    Prohibitive

    Also prohibitive are the costs related to acquiring these permits and the various taxes imposed on tower operators. In South Africa, towers located on a non-leased site incur property taxes. Other fees associated with deployment include the cost of a full environmental impact assessment, which – according to the white paper – ranges from R45 000 to R170 000. A Civil Aviation Authority permit costs a further R1 090, and building plan fees average around R3 000 per site.

    “Without making any judgment about the need for municipalities to collect revenues to support the delivery of public services, it is also the case that by increasing the pre-tax cost of tower deployments, local authorities limit the capacity for the wireless industry to support the connectivity needs of their populations. Since network deployments drive wireless broadband adoption, an extremely high taxation and construction rights burden hampers the tower deployment business case and limits deployment and economic growth,” said the document.

    Read: South Africa takes a step closer to spectrum trading

    The independent tower company business model is similar to a property developer’s. Tower companies – or towercos – deploy structures and rent space to mobile operators, which then put up their radio access network equipment and whatever supporting infrastructure (such as batteries and generators) is required. Being specialists, towercos are able to use economies of scale and expertise to run towers more efficiently than the operators can themselves. The operators, on the other hand, are able to save on costs and sharpen their focus on aspects of their business that are “critical for competitive advantage” – such as customer relationships, branding, customer care and product development.

    Red tape is throttling South Africa's towerco industry - Raul Katz
    Raul Katz

    In South Africa’s case, the high number of industry players in the towerco space – around 35 companies – presents additional risks to the sector’s sustainability. Having too many industry players increases the probability of overbuild, when two or more towercos deploy sites that are too close together. When this happens, the ability to find operators to rent equipment on each tower diminishes because one operator might rent on one tower and another on a different tower. This means the revenue that might have gone into a single tower operator in that area is now spread between two (or more) of them, crushing profit margins.

    Katz said market forces will likely lead to consolidation in the South African towerco market. However, regulatory intervention to prevent overbuild is still required in his view. This might take the form regulations that prescribe a minimum distance between deployments, he said.

    Another way in which regulations could promote the growth of the independent towerco industry – and by extension the wider deployment of next-generation infrastructure like 5G – is the introduction of policies that encourage operators to share resources and thereby save costs.

    Market forces will likely lead to consolidation in the South African towerco market

    Dealing with the challenges presented by higher stages of load shedding in recent years has already driven mobile operators in this direction. In May 2023, the department of trade, industry & competition published block exemptions for energy users, permitting the pooling of backup energy solutions by different operators on a single site.

    The next step in maximising the sharing of tower infrastructure by operators relates to the use of spectrum, said Katz. On Tuesday, the communications ministry released the final next-generation spectrum policy document, which begins to outline rules on how spectrum sharing and trading will work in practice.  – © 2024 NewsCentral Media

    Read: Capex per customer: how much MTN and Vodacom spend on you



    Raul Katz Telecoms Advisory Services
    Subscribe to TechCentral Subscribe to TechCentral
    Share. Facebook Twitter LinkedIn WhatsApp Telegram Email Copy Link
    Previous ArticleSony in talks to buy Queen’s catalogue for up to $1-billion
    Next Article South Africa takes a step closer to spectrum trading
    Company News
    AI is not a technology problem - iqbusiness

    AI is not a technology problem – iqbusiness

    5 December 2025
    Telcos are sitting on a data gold mine - but few know what do with it - Phillip du Plessis

    Telcos are sitting on a data gold mine – but few know what do with it

    4 December 2025
    Unlock smarter computing with your surface Copilot+ PC

    Unlock smarter computing with your Surface Copilot+ PC

    4 December 2025
    Opinion
    Your data, your hardware: the DIY AI revolution is coming - Duncan McLeod

    Your data, your hardware: the DIY AI revolution is coming

    20 November 2025
    Zero Carbon Charge founder Joubert Roux

    The energy revolution South Africa can’t afford to miss

    20 November 2025
    It's time for a new approach to government IT spend in South Africa - Richard Firth

    It’s time for a new approach to government IT spend in South Africa

    19 November 2025

    Subscribe to Updates

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

    Latest Posts
    Big Microsoft 365 price increases coming next year

    Big Microsoft price increases coming next year

    5 December 2025
    AI is not a technology problem - iqbusiness

    AI is not a technology problem – iqbusiness

    5 December 2025
    Vodacom to take control of Safaricom in R36-billion deal - Shameel Joosub

    Vodacom to take control of Safaricom in R36-billion deal

    4 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
    © 2009 - 2025 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}