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.
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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