SA's sky-high data costs

The high cost of data bundles for cellphones and computers is among the issues to be discussed in a two-day hearing in parliament.

Parliament's portfolio committee on communications is expected to examine the cost of data bundles after a public outcry about them being among the most expensive on the continent.

A report by the World Bank said that the limited availability of spectrum - the range of radio frequencies that allows the fast broadband transmission of data - prevented small service providers from entering the market and restricted broadband data-transfer speed.

The report, "South Africa Economic Update", called for better co-ordination between the telecoms industry, the Independent Communications Authority of SA and the Competition Commission in opening up the market.

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"The shortage of spectrum creates challenges for small network providers trying to enter the market and imposes capacity constraints on operators," said the report.

South Africa has relatively high data costs. A gigabyte of data in this country can cost R149; in India it costs R11.

To make more of the spectrum available there must be a migration from analogue to digital broadcasting, said Institute for Race Relations telecommunications analyst Kerwin Lebone.

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"South Africa is paying a lot. When you consider the infrastructure, we should be paying what other developing countries pay."

Spectrum is allocated in many countries by auction, said tech expert Arthur Goldstuck, but when Icasa tried to do the same it was blocked by court action.

The World Bank report suggested that opening up the spectrum could best be achieved by sharing and pooling among competing service providers.