Reduction expected in SA’s telecoms costs

The country's high telecoms costs could come down by more than 15% in the next two years. Government's plans to bring the down the cost of telecommunications will result in state-owned broadband provider, Infraco, rendering cheaper services from 2009.

Director-generals from the departments of public enterprises and communications today made a joint-media briefing in Tshwane, signalling government's commitment to reduce the high cost of telecommunications. This will see Infraco competing directly with Telkom, by providing connectivity to telecom service providers.

"Our anticipation is that in the immediate terms, you should be able to see more than 15% in the prices as soon as it (Infraco) becomes fully operational,” said Portia Molefe, the director-general of public enterprises.

Infraco will not be profit driven, although the company will be expected to generate money. This will allow the company to focus on its developmental goals. Infraco will make broadband affordable for services providers, who will then pass lower costs to consumers.

Investment in the company's infrastructure will cost more than R5 billion.

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