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
      Amazon Prime launched in South Africa

      Amazon Prime launched in South Africa

      3 June 2026
      Amazon's long game in South Africa

      Amazon’s long game in South Africa

      3 June 2026
      Canal+ doubles down on sport to defend DStv

      Canal+ doubles down on sport to defend DStv

      3 June 2026
      South Africa's window of cheap tech is closing

      South Africa’s window of cheap tech is closing

      3 June 2026
      Amazon ups the ante in SA video streaming - Robert Koen

      Amazon ups the ante in SA video streaming

      3 June 2026
    • World
      Astronomers discover exoplanets with magnetic fields

      Strange winds reveal magnetic fields on distant ‘hot Jupiters’

      2 June 2026
      AI giant Anthropic files for landmark US listing

      AI giant Anthropic files for landmark US listing

      1 June 2026
      Dell guns for MacBook Neo with low-cost laptop

      Dell guns for MacBook Neo with low-cost laptop

      1 June 2026
      Nvidia's first CPUs to debut in Windows laptops this week

      Nvidia CPUs to debut in Windows laptops this week

      31 May 2026
      Watch: Bezos rocket erupts in fireball during ground test

      Watch: Bezos rocket erupts in fireball during ground test

      29 May 2026
    • In-depth
      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
      The biggest untapped EV market on Earth is hiding in plain sight

      The biggest untapped EV market on Earth is hiding in plain sight

      1 April 2026
      AI, cybersecurity power standout year for Datatec - Jens Montanana

      The R16-billion tech giant hiding in plain sight

      26 March 2026
    • TCS
      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
      TCS | The Cape Town start-up listening for TB with AI - Braden van Breda

      TCS | The Cape Town start-up listening for TB with AI

      4 May 2026

      TCS+ | ‘The ISP for ISPs’: Vox’s shift to wholesale aggregator

      20 April 2026
    • Opinion

      Clashing judgments leave South Africa’s crypto law unsettled

      2 June 2026
      The trap inside South Africa's banking MVNO boom - Pambos Soteriades

      The trap inside South Africa’s banking MVNO boom

      1 June 2026
      The hidden cost of social media age bans is everyone's privacy - Petrus Potgieter

      The hidden cost of social media age bans is everyone’s privacy

      29 May 2026
      Treasury's crypto crackdown is a betrayal of Mandela's promise - Duncan McLeod

      Treasury’s crypto crackdown is a betrayal of Mandela’s promise

      22 May 2026
      South Africa is sleepwalking into another AI policy failure - Celeste Labuschagne

      South Africa is sleepwalking into another AI policy failure

      20 May 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 » Alistair Fairweather » SA’s operators must stop their whining

    SA’s operators must stop their whining

    By Alistair Fairweather6 October 2014
    Twitter LinkedIn Facebook WhatsApp Email Telegram Copy Link
    News Alerts
    WhatsApp

    Alistair-Fairweather-180-profileIf there’s one group of local companies that doesn’t need help, it’s our telecommunications providers. For decades, this cosy oligopoly has reaped the enormous benefits of rapidly growing new markets, from cellular telephony to data. And yet now they are whining about unfair competition.

    Two weeks ago, MTN South Africa’s CEO, Ahmad Farroukh, told TechCentral that over-the-top (OTT) services like WhatsApp and Skype were unfairly benefiting from his company’s costly infrastructure. He warned that MTN was not prepared to spend billions on its network just for the OTTs to have a “free ride”.

    True to odious form, Telkom was quick to jump on the bandwagon, declaring that OTT services were “skimming” its voice revenues. Without these extra revenues, the company claims, it cannot afford to provide telecoms to poor rural areas, where it runs at a loss.

    Yet this selfless protector of the downtrodden masses made nearly R3bn in profit in its last financial year. Its generosity clearly has limits. One of those limits includes requiring said masses to pay per minute for a service that is free (apart from a small line rental) in most other countries.

    But the most galling thing about this pious nonsense is its self-serving logic: “OTTs use our networks, so they must pay us.” Never mind the fact that we consumers have already paid over the odds for the data required by those services. Our data prices are already high even by the standards of other emerging economies like Brazil and Russia. Now the networks want, essentially, to be paid twice for the same service.

    Our local heavies are taking their cues from their betters in the developed world. Large American and European broadband carriers have long been threatening to begin charging popular video-on-demand services like Netflix for the privilege of using their pipes. This is particularly convenient since many of the owners of said pipes also own cable television channels.

    In both cases, large established companies are dressing up anticompetitive behaviour in regulatory double talk and veiled threats. The three largest local telecoms companies — Vodacom, MTN and Telkom — are all lobbying communications regulator Icasa furiously to allow them to begin charging OTTs directly. The current situation, in which their own expensive services are being replaced by cheaper and better international equivalents, is simply “unfair”, they say.

    And if they don’t get their way, they warn that they might not spend any more money on upgrading infrastructure. In other words: this is my game and these are my toys, and if you don’t like it I won’t play with you anymore. So there!

    Sadly, we’re used to this kind of petulance and entitlement. These self-appointed telecoms barons are so used to winning by default that when anything disruptive comes along, they cry foul.

    Over-the-top players like WhatsApp have got local telecoms companies hot under the collar
    Over-the-top players like WhatsApp have got local telecoms companies hot under the collar

    But they have lost touch with a few essential realities. Firstly, people will use whatever works best for them. Voice calls and SMS messages, once the bread and butter of networks, are in terminal decline. WhatsApp is always better than SMS and often better than a phone call.

    This isn’t only because of price, although that is a factor. It is also because society is changing faster than these companies are willing or able to. And there’s no use in whining about it, or trying to block OTTs. You will only make your customers angry.

    Secondly, if they decide to sulk and refuse to invest in infrastructure, someone else will do it. Some kid in a garage somewhere is already working on the technology that will make her a billionaire and kill the current paradigm stone dead. This protectionist nonsense will only hasten the demise of our current titans.

    Our telecoms industry is like a pack of schoolyard bullies. As soon as they’re confronted with a superior force, they run whining to teacher. Their clumsy PR campaign is intended to sway public opinion. In their arrogance they do not realise in which direction they are swaying it.

    • Alistair Fairweather is chief technology officer for integrated advertising agency Machine
    • This column was first published in the Mail & Guardian Online, the smart news source
    Follow TechCentral on Google News Add TechCentral as your preferred source on Google


    Alistair Fairweather Icasa Ahmad Farroukh MTN Netflix Telkom Vodacom WhatsApp
    WhatsApp YouTube
    Share. Facebook Twitter LinkedIn WhatsApp Telegram Email Copy Link
    Previous ArticleVodacom talks music with Deezer
    Next Article No letter to suspend SABC chair: presidency

    Related Posts

    Why Telkom is pouring capex into IT - Serame Taukobong

    Why Telkom is pouring capital spending into IT

    2 June 2026
    Telkom's data growth story still has years to run: CEO

    Telkom’s data growth story still has years to run: CEO

    2 June 2026
    Telkom's four-year SIU standoff awaits a final ruling

    Telkom’s four-year SIU standoff awaits a final ruling

    2 June 2026
    Company News
    Finding the next Sandton - AfriGIS

    Finding the next Sandton

    3 June 2026
    How telematics keeps fleets safe, efficient and compliant - Tracker

    How telematics keeps fleets safe, efficient and compliant

    3 June 2026
    Data centre summit returns to Sandton this June

    Data centre summit returns to Sandton this June

    3 June 2026
    Opinion

    Clashing judgments leave South Africa’s crypto law unsettled

    2 June 2026
    The trap inside South Africa's banking MVNO boom - Pambos Soteriades

    The trap inside South Africa’s banking MVNO boom

    1 June 2026
    The hidden cost of social media age bans is everyone's privacy - Petrus Potgieter

    The hidden cost of social media age bans is everyone’s privacy

    29 May 2026

    Subscribe to Updates

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

    Latest Posts
    Amazon Prime launched in South Africa

    Amazon Prime launched in South Africa

    3 June 2026
    Amazon's long game in South Africa

    Amazon’s long game in South Africa

    3 June 2026
    Canal+ doubles down on sport to defend DStv

    Canal+ doubles down on sport to defend DStv

    3 June 2026
    South Africa's window of cheap tech is closing

    South Africa’s window of cheap tech is closing

    3 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}