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
      Spar rethinks SAP roll-out amid franchise lawsuit and CEO exit

      Spar rethinks SAP roll-out amid franchise lawsuit and CEO exit

      23 February 2026
      Solar, wind and smart grids - the tech transforming South Africa's mining sector

      Solar, wind and smart grids – the tech transforming South Africa’s mining sector

      23 February 2026
      ASML announces chip manufacturing breakthrough

      ASML announces chip manufacturing breakthrough

      23 February 2026
      Home affairs to move all visa processing online - Leon Schreiber

      Home affairs to move all visa processing online

      23 February 2026
      The real reason MTN is bringing its towers back in-house

      The real reason MTN is bringing its towers back in-house

      22 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 » In-depth » Something has to give in fixed-line broadband – IS

    Something has to give in fixed-line broadband – IS

    By Editor13 October 2011
    Twitter LinkedIn Facebook WhatsApp Email Telegram Copy Link
    News Alerts
    WhatsApp
    Derek Wilcocks

    The growing portion of total consumer spending that Telkom extracts from fixed-line subscribers for broadband access is “not sustainable”, is “not right” and needs to change, says Internet Solutions (IS) MD Derek Wilcocks.

    Speaking to TechCentral in the wake of this week’s public hearings held by the Independent Communications Authority of SA into local-loop unbundling, Wilcocks says it is “ridiculous” that last-mile subscription prices for end users and the wholesale charges levied by Telkom on Internet service providers is “heading to 60%” of the cost of fixed-line broadband services.

    He believes “creative” solutions are urgently needed to address the cost and speed of “last-mile” fixed-line broadband in SA. “The last mile has really become the stumbling point from a capacity and cost perspective,” Wilcocks says. “We have to do something about this.”

    Consumers also need higher connection speeds. “The mind-set that 4Mbit/s is enough is just not going to cut it anymore.”

    He adds that it doesn’t make sense for Telkom to charge varying subscription fees for different line speeds. “It costs the same to put in the line, no matter what you put over it.”

    Local-loop unbundling — where Telkom’s rivals are given access, in some or other form, to its last-mile copper cable — is only one part of the solution. Other remedies include freeing up additional radio frequency spectrum, especially in the bands traditionally used by television broadcasters, and making it easier for companies to invest in alternative last-mile infrastructure such as fibre to the home.

    Wilcocks says it’s crucial that regulations make it easier for companies to get “way leaves” — rights of way to deploy new access networks — and that environmental impact assessments are done more quickly.

    “If we can work on all these fronts, we can see a very different dispensation in SA for home users, mobile users and companies, be they small or large,” he says. “We need to make progress on all these fronts very quickly.”

    Some degree of local-loop unbundling is necessary, Wilcocks says. What is up for debate is which model should be imposed. “A classic North American or European model, where you put equipment in Telkom’s exchanges, isn’t necessarily the right approach,” he says. “Other models include commercial unbundling, or the ability to separate out all of the services you don’t necessarily need to get from Telkom but that are currently bundled into the pricing.”

    IS is experimenting with fibre to the home as a commercial proposition, but he admits the costs are still prohibitive.

    “Extending fibre networks into the home is not something that is too remote, though the price points are still some way off what most home users would be prepared to pay,” Wilcocks says. “We are involved in trials using various technologies but we are a long way from commercial trials. Our trials are with a few users in a closed user group looking at various technologies to see if we can look at a different price point.”

    Assuming single-story urban densities, fibre to the home will still cost between US$5 000 and $10 000 per household, he says. “That’s without looking at housing complexes and blocks of flats, which is a more attractive business model.”

    Wilcocks says IS has a number of bandwidth resellers that are interested in fibre access projects.  — Duncan McLeod, TechCentral

    • Subscribe to our free daily newsletter
    • Follow us on Twitter or on Facebook
    • Visit our sister website, SportsCentral (still in beta)
    Follow TechCentral on Google News Add TechCentral as your preferred source on Google


    Derek Wilcocks Icasa Internet Solutions Telkom
    WhatsApp YouTube
    Share. Facebook Twitter LinkedIn WhatsApp Telegram Email Copy Link
    Previous ArticleMore tough talk from Telkom on unbundling
    Next Article Korea Telecom in talks to buy 20% of Telkom

    Related Posts

    South Africa's dynamic spectrum breakthrough - Paul Colmer

    South Africa’s dynamic spectrum breakthrough

    20 February 2026
    Icasa gears up for South Africa's next big spectrum auction - Tshiamo Maluleka-Disemelo

    Icasa gears up for South Africa’s next big spectrum auction

    17 February 2026
    Starlink expands public advocacy campaign as it pushes for SA licence

    Starlink expands public advocacy campaign as it pushes for SA licence

    17 February 2026
    Company News
    The human side of AI - Altron Digital Business

    The human side of AI

    23 February 2026
    Service is everyone's problem now - and that's exactly why the Atlassian Service Collection matters

    Service is everyone’s problem now – why the Atlassian Service Collection matters

    20 February 2026
    Customers have new expectations. Is your CX ready? 1Stream

    Customers have new expectations. Is your CX ready?

    19 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
    Spar rethinks SAP roll-out amid franchise lawsuit and CEO exit

    Spar rethinks SAP roll-out amid franchise lawsuit and CEO exit

    23 February 2026
    Solar, wind and smart grids - the tech transforming South Africa's mining sector

    Solar, wind and smart grids – the tech transforming South Africa’s mining sector

    23 February 2026
    ASML announces chip manufacturing breakthrough

    ASML announces chip manufacturing breakthrough

    23 February 2026
    Home affairs to move all visa processing online - Leon Schreiber

    Home affairs to move all visa processing online

    23 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}