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Thursday, President Cyril Ramaphosa sleepless the government’s economic recovery plan, which included interventions to make broadband more affordable.
Part of the government’s plan is to “reduce data costs for all South Africans and expand broadband access to low-income households.”
“The release of high-frequency spectrum by March 2021 and the completion of the digital migration will reduce data costs for businesses and households,” Ramaphosa said.
He said that this process is being managed by ICASA and will promote transformation, reduce costs and increase access.
They are also “developing innovative new models to provide low-income households with affordable high-speed Internet access through broadband connection subsidies and support for public Wi-Fi access points.”
In isolation, these comments sound encouraging, but dig a little deeper and you’ll see that these promises are nothing new.
What makes matters worse is that many of the problems related to broadband access and mobile data prices were created by the ANC government itself.
Ramaphosa’s latest data and broadband plan is basically a way to repair the damage that the government has caused over the past 20 years.
Nothing new from Ramaphosa
The pledges around telecom and broadband costs date back 15 years when former President Thabo Mbeki lamented the high fees for fixed lines.
“We believe that the unacceptable situation where some of our fixed telephony rates are 10 times higher than those in developed countries will soon become a thing of the past,” Mbeki said in 2005.
This “unacceptable situation” was, of course, created by the ANC government by granting Telkom a legally protected monopoly in the landline market.
Former President Jacob Zuma also got in on the action by promising telecom cost reductions and 100% broadband internet penetration by 2020.
“We will ensure that the cost of telecommunications is lowered through ongoing projects to expand broadband capacity,” he said in 2009.
Ramaphosa joined this chorus in February 2018 promising spectrum allocation to lower barriers to entry, promote competition, and lower cost to consumers.
A year later, he said once again: “The Minister of Communications will soon issue a policy direction to ICASA for the licensing of high demand radio frequency spectrum.”
In February 2020, he said that ICASA committed to finalizing the licensing of high-demand spectrum for the industry by auction before the end of 2020.
He also followed his 2018 remarks with further promises of “deep cuts in data prices on prepaid monthly packages.”
The reality is that many of these promises did not materialize and gave people false hope for a better broadband future.
The government’s attempt to use state-protected monopolies to provide better broadband services, rather than relying on the free market, failed miserably.
Add to that government incompetence, political interference and corruption, and it’s no wonder digital migration and spectrum allocation still haven’t happened nine years after the government’s own deadline.
What Ramaphosa said and what we heard before
The table below provides an overview of what Ramaphosa said in South Africa’s economic recovery and reconstruction plan, and what was said before.
| Presidents Broadband Comments | ||
| Date | President | Commentary |
| October 2020 | Cyril Ramaphosa | Reduce data costs for all South Africans and expand broadband access to low-income households. |
| February 2020 | Cyril Ramaphosa | Big cuts in data prices on prepaid monthly packages and additional discounts targeting low-income households. |
| February 2018 | Cyril Ramaphosa | We will ensure that spectrum allocation lowers barriers to entry, promotes competition, and lowers cost to consumers. |
| February 2017 | Jacob Zuma | Lowering the cost of data is at the top of our policies and plans. |
| February 2010 | Jacob Zuma | The South African public can expect an even greater reduction in rates for broadband, cell phones, landlines and public telephones. |
| June 2009 | Jacob Zuma | We will make sure that the cost of telecommunications is reduced. |
| February 2006 | Thabo mbeki | Work is progressing well to address challenges such as the cost of telecommunications. |
| February 2005 | Thabo mbeki | The unacceptable situation where some of our fixed line rates are ten times higher than those in developed countries will soon become a thing of the past. |
| October 2020 | Cyril Ramaphosa | The release of high-frequency spectrum by March 2021 and the completion of the digital migration will reduce data costs for businesses and households. |
| February 2020 | Cyril Ramaphosa | ICASA has committed to finalizing the licensing of high-demand spectrum for the industry by auction before the end of 2020. |
| June 2019 | Cyril Ramaphosa | Over the next month, the Minister of Communications will issue the policy direction to ICASA to begin the spectrum licensing process. |
| February 2019 | Cyril Ramaphosa | The Minister of Communications will soon issue a policy direction to ICASA for the licensing of high demand radio frequency spectrum. |
| February 2018 | Cyril Ramaphosa | We will finalize our commitments to the telecommunications industry and other stakeholders for spectrum allocation. |
Now Read: Here is Ramaphosa’s 4-Step Plan to Fix the South African Economy
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