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
      R1.5-billion to switch off the sun

      R1.5-billion to switch off the sun

      7 September 2026
      DStv's biggest shake-up in 15 years lands on 17 September

      DStv’s biggest shake-up in 15 years lands on 17 September

      7 September 2026
      Ageing Safe cable prompts new R1.7-billion Indian Ocean link

      Ageing Safe cable prompts new R1.7-billion Indian Ocean link

      7 September 2026
      UCT thesis makes the constitutional case against light-touch AI rules

      The case against a light-touch AI policy for South Africa

      7 September 2026
      The grid unbundling finally has a deadline

      The grid unbundling finally has a deadline

      7 September 2026
    • World
      'This is not circular': Jensen Huang defends $3.5-billion MediaTek deal

      ‘This is not circular’: Jensen Huang defends $3.5-billion MediaTek deal

      2 September 2026
      AI-generated music banned from Australian charts

      AI-generated music banned from Australian charts

      26 August 2026
      Traders brace for a R4.5-trillion swing in Nvidia's value

      Traders brace for a R4.5-trillion swing in Nvidia’s value

      25 August 2026
      Russia building its own Starlink - and faster than expected - Vadym Skibitskyi

      Russia building its own Starlink – and faster than expected

      11 August 2026
      Meta AI will now tell parents if their teen is in crisis

      Meta AI will now tell parents if their teen is in crisis

      17 July 2026
    • In-depth
      Google DeepMind CEO Demis Hassabis. Image: John Sears

      The plan to stop AI from breaking the world

      16 July 2026
      The internet has a Strait of Hormuz problem

      The internet has a Strait of Hormuz problem

      15 July 2026
      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
    • TCS
      Winstone Jordaan on building a national EV charging network

      Winstone Jordaan on building a national EV charging network

      2 September 2026
      Watts & Wheels S1E8: 'Tesla lands in Africa, just not here'

      Watts & Wheels S1E8: ‘Tesla lands in Africa, just not here’

      24 August 2026
      TCS | Herotel CEO Van Zyl Botha on beating Starlink to South Africa

      TCS | Herotel CEO Van Zyl Botha on beating Starlink to South Africa

      14 August 2026
      Meet the CIO | Discovery's Derek Wilcocks on AI, guardrails and growth

      Meet the CIO | Derek Wilcocks on how AI personalised Vitality

      13 August 2026
      TCS | Money just became native to the internet - Steven Boykey Sidley

      TCS | Money just became native to the internet – Steven Boykey Sidley

      12 August 2026
    • Opinion
      The fragile joint in the Capitec machine - Pambos Soteriades

      The R197-billion market the banks can’t reach

      25 August 2026
      South African tech's compounding debt problem - Jannie van Zyl

      Management consulting as we know it is over

      21 August 2026
      South African tech's compounding debt problem - Jannie van Zyl

      The most dangerous customer is the quiet one

      10 August 2026
      South African tech's compounding debt problem - Jannie van Zyl

      South African tech’s compounding debt problem

      29 July 2026
      The fragile joint in the Capitec machine - Pambos Soteriades

      Best network, worst vibes: the puzzle of SA telecoms

      20 July 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.com
      • 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
      • Vox
      • 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
      • Policy and regulation
      • Public sector
      • Retail and e-commerce
      • Satellite communications
      • Science
      • SMEs and start-ups
      • Social media
      • Talent and leadership
      • Telecoms
      • Watts & Wheels
    • 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

    icasa

    Icasa to investigate what South Africans pay to communicate

    4 September 2026
    Rural South Africans should not have to trade competition for coverage - Paul Colmer

    Rural South Africans should not have to trade competition for coverage

    3 September 2026
    The hole in the law above the Karoo

    The hole in the law above the Karoo

    26 August 2026
    Company News
    How to build a security operations centre that actually works - Kaspersky

    How to build a security operations centre that actually works

    3 September 2026
    Paratus Uganda first to market with Starlink service

    Paratus Uganda first to market with Starlink service

    2 September 2026
    Solid8 brings AlgoSec Horizon to Southern Africa - Simone Santana

    Solid8 brings AlgoSec Horizon to Southern Africa

    1 September 2026
    Opinion
    The fragile joint in the Capitec machine - Pambos Soteriades

    The R197-billion market the banks can’t reach

    25 August 2026
    South African tech's compounding debt problem - Jannie van Zyl

    Management consulting as we know it is over

    21 August 2026
    South African tech's compounding debt problem - Jannie van Zyl

    The most dangerous customer is the quiet one

    10 August 2026

    Subscribe to Updates

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

    Latest Posts
    R1.5-billion to switch off the sun

    R1.5-billion to switch off the sun

    7 September 2026
    DStv's biggest shake-up in 15 years lands on 17 September

    DStv’s biggest shake-up in 15 years lands on 17 September

    7 September 2026
    Ageing Safe cable prompts new R1.7-billion Indian Ocean link

    Ageing Safe cable prompts new R1.7-billion Indian Ocean link

    7 September 2026
    UCT thesis makes the constitutional case against light-touch AI rules

    The case against a light-touch AI policy for South Africa

    7 September 2026
    © 2009 - 2026 NewsCentral Media
    Built and maintained by Chronon
    • 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}