The government plans to introduce reforms soon to encourage lower data prices through competition in the telecom sector.
This as data remains expensive and consumers complain about data expiring.
“High data prices remain a significant challenge, limiting access to critical digital services and economic opportunities,” department of communications & digital technologies (DCDT) spokesperson Kwena Moloto said in an interview with Business Day.
“The DCDT plans to publish a notice in the Government Gazette early in 2025 inviting public comment on the proposed policy direction, with a final policy expected by midyear.
Once implemented the reforms will enable a more dynamic telecommunications sector, where greater competition leads to lower prices, better services and expanded internet access
— Kwena Moloto, department of communications & digital technologies spokesperson
“Once implemented, the reforms will enable a more dynamic telecommunications sector, where greater competition leads to lower prices, better services and expanded internet access,” said Moloto.
This may usher in a change in how BEE is implemented in the telecom sector, which some international players said blocks entry to the market.
“Regulatory reforms include updates to equity ownership requirements which have historically been a barrier for investors,” said Moloto.
“The proposed introduction of equity equivalence programmes offers an alternative to traditional BEE requirements, making it easier for international companies to enter the market while ensuring investments directly benefit South Africans.
“The programmes allow companies to meet transformation objectives by investing in local initiatives such as skills development, enterprise support and infrastructure projects, thereby contributing meaningfully to the country’s economic empowerment goals.”
He responded to complaints about the delay in unlocking spectrum which would encourage a more competitive telecom market.
“Lowering data prices require more than only unlocking spectrum. It also requires a more competitive market. To achieve this (we are) introducing regulatory reforms that will encourage new players to enter the market.
“One of the most frequently discussed potential entrants is Starlink, a global satellite internet provider. Allowing such new players into the market will increase competition, enhance service options and drive down data prices,” said Moloto.
SA is seen as being behind the curve in adopting the connectivity underpinned by low earth orbiting (LEO) satellites, which Starlink offers.
With the country slow to bring in Starlink technology, some telecom providers are working to secure deals they hope will put them ahead of the competition, particularly in outlying and remote areas where connectivity is a challenge.
The popularity of LEO satellites rose in recent years as a way to plug connectivity gaps, with Starlink the best-known such service. It is operational in several neighbouring countries, including Zambia, Eswatini, Malawi and Zimbabwe, the latest African country to gain access to the high-speed internet service.
President Cyril Ramaphosa is on record as saying he is working hard to ensure SA-born US billionaire and Starlink’s owner Elon Musk’s affection for and connection with the country of his birth is restored. Musk is close to US president-elect Donald Trump, and both are expected to be in SA this year for the Group of 20 (G20) summit.
The G20 is a forum for the world’s major economies to discuss economic, social and development issues.
On the issue of data expiring, government said there is not much it can do except encourage more competition.
Moloto said: “A recurring concern among consumers is the expiry of data bundles, a practice implemented by mobile network operators as part of their business models.
“Since data is a service rather than a tangible product operators manage their network capacity by setting time limits on data use. It is important to note this model is determined by service providers, not by government regulations.”
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