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
      Blu Label resumes dividends as it draws line under Cell C saga - Brett Levy

      Blu Label resumes dividends as it draws line under Cell C saga

      25 February 2026
      Mustek warns chip-supply crisis far from over

      Mustek warns chip-supply crisis far from over

      25 February 2026
      South Africa's draft AI policy headed to cabinet

      South Africa’s draft AI policy headed to cabinet

      25 February 2026

      Stripe mulling bid for PayPal: report

      25 February 2026
      Cut EV taxes now, industry implores Godongwana ahead of budget - Enoch Godongwana

      Cut EV taxes now, industry implores Godongwana ahead of budget

      24 February 2026
    • World
      Xbox chief Phil Spencer retires from Microsoft

      Xbox chief Phil Spencer retires from Microsoft

      22 February 2026
      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
    • In-depth
      The last generation of coders

      The last generation of coders

      18 February 2026
      Sentech is in dire straits

      Sentech is in dire straits

      10 February 2026
      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
    • 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
      The AI fraud crisis your bank is not ready for - Andries Maritz

      The AI fraud crisis your bank is not ready for

      18 February 2026
      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
    • 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 » 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

    Follow TechCentral on Google News Add TechCentral as your preferred source on Google


    Raul Katz Telecoms Advisory Services
    WhatsApp YouTube
    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
    Netstar and Sunshine Tour team up on data-driven golf analytics

    Netstar and Sunshine Tour team up on data-driven golf analytics

    24 February 2026
    Vox customers set to benefit from direct, optimised Google connectivity

    Vox customers set to benefit from direct, optimised Google connectivity

    24 February 2026
    The human side of AI - Altron Digital Business

    The human side of AI

    23 February 2026
    Opinion
    The AI fraud crisis your bank is not ready for - Andries Maritz

    The AI fraud crisis your bank is not ready for

    18 February 2026
    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

    Subscribe to Updates

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

    Latest Posts
    Blu Label resumes dividends as it draws line under Cell C saga - Brett Levy

    Blu Label resumes dividends as it draws line under Cell C saga

    25 February 2026
    Mustek warns chip-supply crisis far from over

    Mustek warns chip-supply crisis far from over

    25 February 2026
    South Africa's draft AI policy headed to cabinet

    South Africa’s draft AI policy headed to cabinet

    25 February 2026

    Stripe mulling bid for PayPal: report

    25 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}