Share

Lukewarm response to Zuma tech strategy

Cape Town - President Jacob Zuma's proposals for expanding and investing into the technology sector has been met with a lukewarm response.

In Zuma's State of the Nation Address on Tuesday night, he made reference to the expansion of broadband and the country's shift to digital terrestrial television.

"We will expand, modernise and increase the affordability of information and communications infrastructure and electronic communication services, including broadband and digital broadcasting," Zuma said.

The shift to digital TV has been delayed for a number of years. SA was scheduled to make the switch in 2008 and the hold-up has had implications for the delivery of high speed wireless broadband.

The 800MHz spectrum is a key requirement for Long Term Evolution or LTE services which could see mass expansion of wireless broadband.

Spectrum crunch

Broadband is a critical goal of the National Development Plan which promises that the country will have 100% broadband coverage by 2020.

"Cabinet adopted 'South Africa Connect', our Broadband Policy and Strategy, in December last year to take this mission forward," Zuma added.

Mobile operators are rolling out limited LTE services in the absence of spectrum in the critical 800MHz band.

"We continued to invest in our network to increase our differentiation. We invested nearly R7bn to  increase  our  coverage  and  capacity  and  improve  quality  for  voice  and  data  network," said Shameel, Vodacom CEO.


The allocation of spectrum is critical for the rollout of high speed mobile networks. (Duncan Alfreds, Fin24)

Cell C, which is set to benefit from the asymmetrical reduction of MTR (Mobile Termination Rate) regulations, was more positive. These are the rates that mobile operators pay each other for calls that terminate on rival networks.

"Cell C notes that Honourable President Jacob Zuma placed emphasis on the growth of the South African economy and acknowledged the role that Information and Communications Technology will play in it," Graham Mackinnon, Cell C chief officer: Legal and Regulatory told Fin24.

"These statements indicate increased state participation in the knowledge economy in line with the NDP goals and confirm Government's support for the benefits of competition to reduce the cost to communicate," he added.

Infrastructure development

Mackinnon said that the mention in the speech of development of the mobile sector was "encouraging".

"These, alongside the adoption of the South Africa Connect broadband policy and strategy by Cabinet in December last year - as indicated by the President in his address - are encouraging signs for the future of the sector."

Zuma said that his government had accelerated delivery of infrastructure.

"During the past five years, we invested about one trillion rand in new infrastructure to provide water, energy, transport, sanitation, schools and clinics and internet connections to our people."

According to the GSM Association, 39.3% of South Africans have access to 3G networks, higher than the regional average of 7.6%.

Vodacom said that it was accelerating a build programme to be ready for 4G spectrum allocation, which was expected by the end of 2014.

"We increased  our  3G  coverage  to  92%  of  the  population  in  South  Africa  and  increased  our  LTE coverage by just short of 1 000 sites in South Africa. As we see strong growth in data traffic we also invested heavily in our transmission," said Joosub.

MTN is also investing in LTE with Port Elizabeth its most recent city that went live with the service. The operator has expanded its 3G network to 1 133 sites nationwide this year so far.


- Follow Duncan on Twitter
We live in a world where facts and fiction get blurred
Who we choose to trust can have a profound impact on our lives. Join thousands of devoted South Africans who look to News24 to bring them news they can trust every day. As we celebrate 25 years, become a News24 subscriber as we strive to keep you informed, inspired and empowered.
Join News24 today
heading
description
username
Show Comments ()
Rand - Dollar
18.94
-0.0%
Rand - Pound
23.90
+0.0%
Rand - Euro
20.41
+0.1%
Rand - Aus dollar
12.33
+0.1%
Rand - Yen
0.13
-0.0%
Platinum
908.05
+1.2%
Palladium
1,014.94
+1.3%
Gold
2,232.75
-0.0%
Silver
24.95
-0.1%
Brent Crude
87.00
+1.8%
Top 40
68,346
0.0%
All Share
74,536
0.0%
Resource 10
57,251
0.0%
Industrial 25
103,936
0.0%
Financial 15
16,502
0.0%
All JSE data delayed by at least 15 minutes Iress logo
Company Snapshot
Editorial feedback and complaints

Contact the public editor with feedback for our journalists, complaints, queries or suggestions about articles on News24.

LEARN MORE
Government tenders

Find public sector tender opportunities in South Africa here.

Government tenders
This portal provides access to information on all tenders made by all public sector organisations in all spheres of government.
Browse tenders