The release of high-demand spectrum must result in the reduction of the cost of communication, says minister Khumbudzo Ntshavheni.
Ntshavheni was speaking on the occasion of the Department of Communications and Digital Technologies’ (DCDT’s) budget vote speech in Parliament yesterday, noting some of the positive deliverables that emanate from the historic spectrum auction process.
Telecoms regulator the Independent Communications Authority of South Africa (ICASA) concluded its spectrum auction in March, raising R14.4 billion for the national fiscus.
Furthermore, the regulatory authority has committed to making the relevant spectrum available to licensees from 1 July.
In her speech yesterday, the minister said: “We will progressively work on policy instruments to drive the reduction of the cost to communicate in South Africa, including the classification of data as a new basic utility at the same level as water and electricity.”
South Africans have, in the past, been vocal about the high cost to communicate. In 2016, citizens took to social media to express their frustrations with local mobile operators, resulting in the #DataMustFall movement receiving widespread media attention and attracting Parliament’s notice.
In addition, the Competition Commission (CompCom) data services market inquiry in December 2019 found the cost of data in SA was considerably higher than in many other countries. The CompCom recommended that telcos reduce data costs and instructed the leading operators − MTN and Vodacom − to cut their mobile data pricing by half.
Ntshavheni pointed out that given the importance of data and it becoming an enabler of innovation and wealth creation for global economies, her department will publish for public comment a revised spectrum policy no later than July.
“The draft policy will include proposals of spectrum for SMMEs, and network and data services in a manner that drives meaningful SMME participation in the telecommunications sector, among others.
“In the meantime, ICASA is undertaking a market study on the call termination review. The outcome of this market study will have a determining factor in the reduction of the average data price.”
Government, through the DCDT, has committed to provide affordable and universal connectivity in SA by 2024.
The minister noted the release of the high-demand spectrum will improve the ability of mobile telecoms operators to build robust telecommunications with better penetration and reach, as the state chases its goal of ensuring all South Africans have internet access within the stipulated timeframe.
To this end, she said, the mobile telecoms operators are starting to upgrade the telecommunications network and build robust 5G telecommunication networks.
“In the immediate, through ICASA we have installed social obligations that will see the telecommunications operators connecting 18 520 schools, 5 731 clinics and hospitals, 8 241 traditional authority offices, and 949 libraries and Thusong Service Centres over the next 36 months.
“The department, working with ICASA, will monitor the progress on the connection of these sites.”
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