Pretoria - A faster rollout of the telecommunications spectrum could see a further reduction in data costs, according to National Treasury.
It said a well-designed spectrum auction could promote transformation, improve competition as new participants enter the market and could sharply reduce data costs.
During his Medium-term Budget speech on Wednesday, Finance Minister Malusi Gigaba said the Council for Scientific and Industrial Research has completed a study on spectrum availability and open access on behalf of the Department of Telecommunications and Postal Services.
The delay in allocating telecommunications spectrum constrains growth across the economy.
Lack of radio frequency limits the ability of businesses to deploy new technologies, and contributes to the high cost of broadband.
In comparison, and according to independent research, SA fares reasonably well compared to African countries, which pay a higher price per gigabyte.
It was previously announced that the Competition Commission launched a market inquiry to investigate data prices.
“Minister Patel is driving a process for the Competition Commission to launch a market inquiry to investigate data prices, and it has been actively investigating anti-competitive behaviour.
“Minister Patel is also finalising draft legislation to improve our policy and legal framework on competition issues,” Gigaba said.
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