What needs to be done to sort out broadband in South Africa?

[WireFree]

Please also think about this from a long-term perspective - what are we going to need in 2030? what will be the world standard in 2030 for connectivity be.
If you look at the Internet today. More and more people are using services from the Internet instead of services from the local operator - e.g. Skype, Facebook, Google services, You Tube, Amazon, etc. The local telcos (Vodacom, MTN, Cell C and Telkom) are simply becoming bit pipes - and by 2030 connectivity to the Internet will be their sole source of revenue. By 2030, Internet connectivity should be a utility service (like access to water and electricity).

Don't underestimate the need for broadband is rural areas. Broadband Internet in the rural areas may make it cheaper for people in rural areas to use solar-powered 3D-printers to reproduce a spare part for a device than to drive to a urban area to get the part - if petrol is projected to cost much more by 2030. It may also be cheaper to use broadband internet for tele-medicine and holographic meetings than flying or driving (depending on the cost of fuel).

Where do you think the problems are now?
Lack of effective competition at a retail level - as the infrastructure owners have a monopoly over resources. Only a few networks have radio spectrum and don't allow access to non-spectrum holders. Telkom owns majority of the fixed line access and backhaul infrastructure.

How do we deal with these?
Spectrum is a national resource. Radio spectrum holders should allow smaller operators access to their network. Telkom's infrastructure and monopoly value was built during pre-90s and 90s when it had a monopoly and hence they should be subjected to the equivalent of infrastructure equality. They should also be required to provide services to rural areas at subsidised rates.

What is the most important intervention to be made to get cheaper, faster broadband to more people?
Reduce monopolies of infrastructure that was built on exclusive access to radio spectrum and licences in the past.

How do we deal with the problem of broadband services in rural areas?
Impose obligations on monopolies of infrastructure that was built on exclusive access to radio spectrum and licences in the past.

How would you like to see Telkom sorted out?
Split Telkom into multiple companies - Service Provider, Access Network, Backhaul Network, Wireless Network and International Gateway.
Don't forget about BT Openreach - http://en.wikipedia.org/wiki/Openreach

[WireFree]

Well done Sting. I agree with your points - but didn't have time to type out as much detail.

[Celine]

well done on all of you for spending your time and drafting a proposal for a dictatorship. your opinions will not even be read or heard for that matter.

this is the government and they are staunch in their ideas and settings. they do not think outside the box and when we have one telecommunications company with the monopoly of this country that will never ever nationalise, there is no point in even striking against the thunder.

one only needs to phone one of these governments call centers to realise how much their employees are indoctrinated and manipulated to how they want the system to run. not only is it frustrating but you will never ever get passed the starting gate.

[dominic]

@ sting, very nice
there is some great stuff here, thank you

Question: most of the posts above have focussed on fixed line pricing - particularly ADSL. Looks like only Emperor has mentioned mobile broadband pricing explicitly

- do we really have a situation where there are lots of people in rural areas who do not have coverage?
- is the problem more about affordabilty than being able to access basic services?

Personally i see that the majority of South African's will access broadband services through their handsets - follows that some of the most important interventions should be around ensuring that they can afford these services. What kind of competition is there in the mobile data market as opposed to the fixed line market? Would allowing opportunities for companies like MWEB, Afrihost and Axxess to play in the mobile data retail space make a difference in the same way it has in the fixed market (in the last two years price per Gb has reduced from R70 odd to as low as R8 & we have seen the release of uncapped products)?

[Sting]

@ dominic

My ideas revolve around delivering broadband using any means of technology, whether fixed line or wireless. Wireless includes mobile.

And yes, the current "fixed line" ISPs should be given access to the mobile retail data space. (come on Jannie, tell us why it cannot be done )

[Revo]

Telkom is a monopoly, unregulated as they can set the prices of products and services to what they choose. Telkom has to be broken up in too smaller business, it won't only help the ICT sector but increase job opportunities.

ICASA needs to be fined for deadlines missed as they also just do what they want when they want (Usually taking forever). ICASA needs to be regulated. Without regulation the ICT sector is never going to make any significant progress this meaning no potential growth regarding ICT in South Africa.

[[)roi(]]

Simple, get off your lazy, incompetent, and corrupt asses and hire skilled resources that give a damn about earning their tax funded salaries, oh and let's not forget about developing a backbone and getting those toothless dentures fixed.

[Goku8]

We firstly need to make it affordable for everyone. This starts off with Telkom, not charging for the line rental and adsl rental. This was already paid for in our taxes! The end user needs to be supported and enticed to utilise the available possibilities that the internet has to offer. By making it affordable and aligned with 1st world countries. Imagine the possibilities of allowing the person on the street to access the internet and enjoy learning about various things and discovering their passion. In the long term rural schools would be able to afford the internet and children can learn faster quicker and grow south africa to be what it should be. ISPs can therefore afford to provide customers with a more comprehensive range of options. All in all growing the entrepreneural businesses in SA. Come on ICT make South Africa better.

[BrendanMc]

1) Well for one, better service delivery. If they make a commitment in regards to a certain timeline, they should stick to it. Don't set unrealistic targets and come deadline day sit there with a blank look on your face and a bunch of poor excuses.

2) Naked ADSL is also something that is an absolute must. The sooner this is done the better for everyone. While there are surely certain cost implications involved and the ever long standing debate on "Who will look after the last mile?" I'm pretty sure some sort of service agreement can be reached between the various entities involved to implement some sort of maintenance schedule/ contract.

3)Congested exchanges...This goes without mention. There are tons of Exchanges all over the country that are simply performing poorly. Before jumping the gun and trying launch new products/ services fix the stuff that is broken first.

4) Restructuring of ICASA. They are just not towing the line. Need someone that can better informed decisions that will move Broadband as a whole forward in our country. Not stagnating the way it currently is.

[skimread]

I read in a study a while ago that ADSL entry level cost in SA was the highest out of 5 countries surveyed In Africa and that the upper level Package matched was equivalent in cost but not better. This is not acceptable.

I suggest
1. Entry level adsl costs should NOT be higher than other African countries. This should be made a target instead of excuses be found which should not exists taking into account our economics of scale and size of economy.
2. 384k should NOT be declared broadband. A plan to scale out 512k within max of one year.
3. Reasons must be provided why wireless broadband is so much faster and cheaper than DSL where as worldwide the trend is reversed. A target must be set due to Telkom being afforded defacto monopoly status in fixed line adsl and due to the fact that the ministerial directive of 2007 of LLU has not been implemented that entry level adsl must by Nov 2012 be priced and speed upgraded to MATCH the equivalent wireless offerings. 8TA must be used as an example. Telkom is willing to make low margins on it 8TA but adsl they still want healthy profit.
4. Findings be done into Telkoms harmful impact on SAs economy and dramatic loss in shareholder value due to all the legal cases, Nigeria exit and satellite exit. Based on this to stop the slide emergency measures must be put in place for the benefit of South Africa to split Telkom into wholesale and commercial entities.
5. Force Telkom to provide real time gelocation map of exchanges,what speed they support, contention ratio and planned upgrades.

[McT]

Where do you think the problems are now?

Chiefly it lies with Telkom, ICASA and Government/Minister of Communications

Telkom's monopoly and apparent protection by government is a problem and hindrance to other potential players/entrants to this space. Telkom's domination of fixed line and high pricing in line rentals for adsl doesn't help either. It makes it prohibitive for most to get a landline, adsl connection and isp. Also, I firmly doubt that Telkom alone can reach every household. So trying to do it alone it a hindrance to those who could possibly do it.

ICASA just doesn't appear to the ability and clout to exercise it core functions. The problem here probably lies with their management.

An apparent lack of political will by Government and DOC to crack the whip, to develop strategy and make a difference in this space. I believe it will make a difference in job creation, business and education.

How do we deal with these?

Telkom: their political protection and monopoly should be completely removed or they should be nationalised with the focus of making broadband cost effective for everyone ... even the lower income groups.

ICASA: committed management, empowered by the DOC and backed by a willing Government

Government/DOC: the minister should be someone who knows the industry, has some experience in this regard, politically willing, etc. There should also be political willingness from Government to make a difference. Somehow I feel this will only happen when the ruling party is removed by the voters or they drop their power hungry, corrupt, enrichment and crony/nepotism practices and truly begin to serve the people. Their removal will probably come first.

What is the most important intervention to be made to get cheaper, faster broadband to more people?

Telkom's focus should move away from being profit driven to become consumer focused. I think that 8ta is probably as distraction to what should be their core focus.

Honestly, I think the answers to this question lies in the mobile broadband. Almost everyone and their dog has a cell phone which can access the internet. Why shouldn't their be a focus to make the mobile network's more comprehensive and improve the speeds at which that all can access the internet. And here I am thinking more of people in townships, informal settlements and rural areas. With commitment I feel it is possible.

How do we deal with the problem of broadband services in rural areas?

Mobile broadband is the key.

[K3NS31]

It's the same old story and we all know it already.
The industry needs to be opened up so that anybody can provide broadband related services and / or infrastructure. That is to say, bandwidth, lines, backhaul, fibre, whatever. Actual, real competition for Telkom on all fronts will increase quality and decrease prices. Of course, a large part of the solution to this is LLU.
But there are practical considerations as well.
We have a situation with most of the country(homes & businesses) being connected to Telkom. Are we going to let everybody and their dog lay cables all over the place as well? Then we'd end up with the same situation as the Cell phone networks. We pretty much have FOUR cell towers covering the same areas, one for each company, in each location! What a waste.
Imagine we go full LLU, there'd be continuous digging up of roads and pavements to lay extra cables for years to come.
I suggest something like: removing the current physical infrastructure from Telkom. It's all virtually stolen anyway. They paid for it with Apartheid money and subsequently with the ridiculous profits they made from being in a government sanctioned monopolistic position. It's time for the free ride to end. That infrastructure belongs to the country, not to Telkom.
Give control of it to ISPA or ICASA or create a new body to do it. The ISP's can all pay a reasonable fee for access, then they don't need to lay their own cables, unless they're going to do an upgrade. And if upgraded infrastructure also becomes part of the main system, then we'll have upgrades happening as and where there's demand, with a central body controlling it all so there's no redundant work being done. It's win-win for everyone, except Telkom.
And it's high time they started paying SA back for all the money they've stolen over the decades!

[DrJohnZoidberg]

^ What they said. Where do some of you guys get the time to write these essays during office hours?

[Chevron]

Nationalize Telkom and use taxpayers money to build a network. Then lease it for cheaply to competitors.

Also needs to be put into law that any complex with more than x units needs to have an adsl enabled dslam.

[ChocolateBadger]

Just on a basis of cost for fiber network. Replace the current copper lines with fiber, bit by bit, then sell the copper to cover the cost or keep it as assets. If copper is worth something to criminals, then its telkoms biggest asset. Basic internet or Goverment internet should be introduced (384kb/s max) where its free to poorer houses as it will be a need such as electricity and water. Nationalise telkom. If internet is going to be a need then it must be tax money paying for it but no line rental.