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
      Koos Bekker sells R2.5-billion in Naspers and Prosus shares

      Koos Bekker sells R2.5-billion in Naspers and Prosus shares

      23 December 2025
      Tribunal clears Vumatel's takeover of Herotel - with conditions

      Tribunal clears Vumatel’s takeover of Herotel – with conditions

      23 December 2025
      Wiocc subsidiary OADC cleared to buy NTT data centres in South Africa

      Wiocc subsidiary OADC cleared to buy NTT data centres in South Africa

      23 December 2025
      Netflix launches Afcon football show, hinting at bigger sports ambitions

      Netflix launches Afcon football show, hinting at bigger sports ambitions

      23 December 2025
      Digital authoritarianism grows as African states normalise internet blackouts

      Digital authoritarianism grows as African states normalise internet blackouts

      19 December 2025
    • World
      Trump space order puts the moon back at centre of US, China rivalry - US President Donald Trump

      Trump space order puts the moon back at centre of US, China rivalry

      19 December 2025
      Warner Bros slams the door on Paramount

      Warner Bros slams the door on Paramount

      17 December 2025
      X moves to block bid to revive Twitter brand

      X moves to block bid to revive Twitter brand

      17 December 2025
      Oracle’s AI ambitions face scrutiny on earnings miss

      Oracle’s AI ambitions face scrutiny on earnings miss

      11 December 2025
      China will get Nvidia H200 chips - but not without paying Washington first

      China will get Nvidia H200 chips – but not without paying Washington first

      9 December 2025
    • In-depth
      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
      Canal+ plays hardball - and DStv viewers feel the pain

      Canal+ plays hardball – and DStv viewers feel the pain

      3 December 2025
      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
    • TCS
      TCS+ | Africa's digital transformation - unlocking AI through cloud and culture - Cliff de Wit Accelera Digital Group

      TCS+ | Cloud without culture won’t deliver AI: Accelera’s Cliff de Wit

      12 December 2025
      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
    • Opinion
      Netflix, Warner Bros deal raises fresh headaches for MultiChoice - Duncan McLeod

      Netflix, Warner Bros deal raises fresh headaches for MultiChoice

      5 December 2025
      BIN scans, DDoS and the next cybercrime wave hitting South Africa's banks - Entersekt Gerhard Oosthuizen

      BIN scans, DDoS and the next cybercrime wave hitting South Africa’s banks

      3 December 2025
      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
    • 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 » News » Trust the free market, MTN tells government

    Trust the free market, MTN tells government

    By Duncan McLeod7 March 2018
    Twitter LinkedIn Facebook WhatsApp Email Telegram Copy Link
    News Alerts
    WhatsApp
    MTN South Africa CEO Godfrey Motsa

    Government must trust the free market to drive down prices and not create a new infrastructure monopoly by giving all unassigned broadband spectrum to a new wholesale operator.

    That’s the message from MTN South Africa CEO, Godfrey Motsa, who warned officials from the department of telecommunications & postal services at a workshop in Pretoria on Wednesday that the Electronic Communications Amendment Bill could strangle the sector.

    He said the mobile operators have delivered access to the vast majority of South Africans. He said MTN’s 2G network coverage now reaches 99% of the population, while 3G is at 98% and 4G/LTE is at 71%. He said a lack of new spectrum is holding back the company from delivering universal 4G coverage.

    Please trust the market forces, trust competition, for us to be able to solve a lot of these things

    “With more spectrum, we will improve speeds and sell bigger data at lower prices,” Motsa said. “The main reason prices are high is because we don’t have spectrum.”

    Government is threatening to withhold future spectrum assignments from commercial operators, instead directing it to a new, private sector-led wholesale open-access network (Woan), from which the operators will be expected to procure access. Motsa said this will create a new monopoly in the sector to the detriment of the industry and consumers.

    Rather than creating an infrastructure monopoly in the proposed Woan, spectrum should be released to the operators with conditions attached. “Put conditions for us to accelerate transformation,” he said. “That’s where the juice is. We are squeezing in the wrong place.”

    He emphasised that competition is just as important at the infrastructure level as it is as the services layer. Government wants to encourage competition in services, rather than infrastructure, in an effort to, among other things, reduce duplication. But Motsa said that of MTN’s 11 000 towers, 7 000 are already shared with others.

    He said that even in China, the country’s three big mobile operators all compete on an infrastructure level.

    No to a monopoly

    “A monopoly will never deliver a quality network. We saw that for a long time until 1994. Today, a South African household has better access to the Internet than they do to water or electricity. We cannot introduce a monopoly into this sector and still expect we can deliver quality networks,” he said.

    He also decried a plan by government to force operators to open their networks to rivals at cost. “Why would we spend R10bn/year and give that infrastructure to someone at a zero mark-up? Who goes into business to sell things at cost? People just won’t build (networks).”

    We believe the bill as proposed today is against the National Development Plan

    Motsa blasted a proposal in the bill that operators be forced at some point to hand back their existing spectrum assignments, the ones they have used to build their 2G, 3G and 4G networks. He said government’s approach is that spectrum should be returned as if the operators had somehow “stolen it”.

    “Why are we thinking this way? We have spent tens of billions of rand building infrastructure. You take away the spectrum, then the towers, the radio, the fibre, it’s worth nothing.”

    He said the amendment bill flies in the face of the National Development Plan, which states that spectrum allocation should be based on competition. “We believe the bill as proposed today is against the NDP.”

    Also, the proposed Woan is riddled with “vagueness and ambiguity”, Motsa said. He said there is a place for a Woan-type network, but it should under no circumstances be given a monopoly by assigning it all future spectrum assets. There is sufficient spectrum to allow for infrastructure competition.

    “Please trust the market forces, trust competition, for us to be able to solve a lot of these things (government wants to address),” he said.  — © 2018 NewsCentral Media



    Godfrey Motsa MTN MTN South Africa top Woan
    Subscribe to TechCentral Subscribe to TechCentral
    Share. Facebook Twitter LinkedIn WhatsApp Telegram Email Copy Link
    Previous ArticleFNB’s app strategy leaves its rivals in the dust
    Next Article Don’t build another monopoly, Facebook urges SA gov’t

    Related Posts

    MTN Zambia launches world's first 4G cloud smartphone solution - Huawei

    MTN Zambia launches world’s first 4G cloud smartphone solution

    17 December 2025
    Vodacom follows MTN with post-paid price hikes

    Vodacom follows MTN with post-paid price hikes

    11 December 2025
    Above-inflation price hikes to hit MTN customers

    Above-inflation price hikes to hit MTN customers

    10 December 2025
    Company News
    Why TechCentral is the most powerful platform for reaching IT decision makers

    Why TechCentral is the most powerful platform for reaching IT decision makers

    17 December 2025
    Business trends to watch in 2026 - Domains.co.za

    Business trends to watch in 2026

    17 December 2025
    MTN Zambia launches world's first 4G cloud smartphone solution - Huawei

    MTN Zambia launches world’s first 4G cloud smartphone solution

    17 December 2025
    Opinion
    Netflix, Warner Bros deal raises fresh headaches for MultiChoice - Duncan McLeod

    Netflix, Warner Bros deal raises fresh headaches for MultiChoice

    5 December 2025
    BIN scans, DDoS and the next cybercrime wave hitting South Africa's banks - Entersekt Gerhard Oosthuizen

    BIN scans, DDoS and the next cybercrime wave hitting South Africa’s banks

    3 December 2025
    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

    Subscribe to Updates

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

    Latest Posts
    Koos Bekker sells R2.5-billion in Naspers and Prosus shares

    Koos Bekker sells R2.5-billion in Naspers and Prosus shares

    23 December 2025
    Tribunal clears Vumatel's takeover of Herotel - with conditions

    Tribunal clears Vumatel’s takeover of Herotel – with conditions

    23 December 2025
    Wiocc subsidiary OADC cleared to buy NTT data centres in South Africa

    Wiocc subsidiary OADC cleared to buy NTT data centres in South Africa

    23 December 2025
    Netflix launches Afcon football show, hinting at bigger sports ambitions

    Netflix launches Afcon football show, hinting at bigger sports ambitions

    23 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}