DECEMBER 9, 2022
Insights News

South Africa grapples with exorbitant broadband costs

South Africa grapples with exorbitant broadband costs

Despite numerous endeavors to enhance broadband infrastructure and reduce expenses, ensuring affordable broadband remains a formidable challenge in South Africa, especially for households with limited incomes.

According to Corridor Africa CEO Matone Ditlhake, this barrier to affordability perpetuates a digital divide, impeding the country’s potential for comprehensive socio-economic advancement. Matone asserts that concerted efforts from various stakeholders aim to address these challenges and pave the way for a more accessible and equitable digital future.

A pivotal figure in this endeavor is the country’s Minister of Communications and Digital Technologies, Mondli Gungubele, tasked with spearheading initiatives to enhance internet accessibility and reduce the cost of connectivity. With ambitious targets set for 2024, including ensuring 80 percent of the population has internet access and issuing a policy direction for 5G, the government signals its commitment to bridging the digital gap.

Although mobile devices are the primary mode of internet access, concerns persist regarding the affordability of data. South Africa falls short of the UN Broadband Commission’s affordability threshold, with 1GB of data consuming over 2% of the average monthly income for many citizens. The #DataMustFall movement, echoing sentiments of discontent with elevated pricing, underscores the urgency for action.

To address these challenges, Matone advocates for a multifaceted approach. He emphasizes the importance of increasing investment in broadband infrastructure, particularly in underserved areas, through public-private partnerships, as demonstrated in Rwanda and Kenya, to foster greater inclusivity.

Matone also suggests implementing regulatory reforms that promote competition to drive down prices and improve service quality, citing India’s experience with Reliance Jio as an example of the transformative impact of policy changes on data affordability.

Moreover, he highlights the potential of embracing innovative technologies, such as low Earth orbit (LEO) satellites, to expand connectivity at lower costs, with companies like SpaceX showcasing the feasibility of such initiatives.

Targeted subsidies and tax incentives, Matone argues, can incentivize investment in underserved areas and alleviate financial burdens for consumers, drawing lessons from countries like Australia where such interventions have fostered broadband uptake.

Additionally, Matone stresses the importance of enhancing digital literacy and skills development, advocating for the integration of digital education into national curricula, as seen in South Korea, to empower individuals to leverage connectivity effectively.

Furthermore, he emphasizes the significance of engaging consumers in the policymaking process and advocating for their interests to drive meaningful change in broadband pricing and accessibility, citing European Union initiatives as examples of the impact of consumer feedback on shaping telecommunications policy.

By embracing these strategies and leveraging lessons from global best practices, Matone believes South Africa can make significant strides towards ensuring affordable broadband for all. He concludes that the government’s commitment, coupled with collaborative efforts across sectors, holds the key to unlocking the transformative potential of connectivity and narrowing the digital divide as the country progresses in its digital journey.

TechBoy

Editor

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