South African cities want to charge networks for installing fibre - Here is why

Hanno Labuschagne

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South African cities want to charge networks for installing fibre - Here is why

The municipalities of Tshwane and Kouga are looking at ways to turn network infrastructure, particularly fibre cables, into a utility that they can earn revenue from.

Last year Tshwane introduced a new set of tariffs that would allow the municipality to charge network operators an annual fee of R211 per kilometre of network cable in the road reserve.

Both cellular and fibre network providers lay cable along municipal roads, meaning these tariffs would affect every network provider in South Africa — from the smallest new entrant in the fibre connectivity space to MTN, Vodacom, Telkom, and Vumatel.
 

StefanB7

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Tshwane wants to milk it’s citizens. These tariffs will eventually be carried over to the subscribers. Pretoria residents already pay exorbitant property taxes. It isn’t as if those fibre cables in the ground require regular maintenance from Tshwane’s side. This country of ours.
 

randomcat

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Tshwane wants to milk it’s citizens. These tariffs will eventually be carried over to the subscribers. Pretoria residents already pay exorbitant property taxes. It isn’t as if those fibre cables in the ground require regular maintenance from Tshwane’s side. This country of ours.
Wait till the "drought" comes. They say they are trying to save water. Then they say because people are not using water, they have to put the price up. When rain comes they say **** you we keeping the price up because money. Everyone working there gets a raise and you get to pay a few hundred rand extra every month. Also "measures" need to be put into place, so that tendapreneurs can make a few million. Those measures won't work in a few months time and you end up paying for that. This is off topic but you get the idea. You can't win.
 

deweyzeph

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The way municipalities are run in South Africa just stinks. Why are municipalities even necessary in this day and age? Every service that a municipality provides can be privatised and provided by a private company if the law allowed for it. Municipalities have just become failed SOE's that are feeding troughs for corrupt local politicians.
 

quovadis

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What about air? Those vodacom & mtn towers are a juicy source of income with all that 5G goodness transiting the metro :laugh:
 

system32

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Here's and idea for the Metro, instead of introducing fees that slow down rollout of much needed infrastructure, how about you:
  • Stop Corruption
  • Reduce Waste
  • Reduce useless bureaucracy
  • Reduce costs
  • Improve efficiency
Then you won't have to increase rates.

Signed
Ratepayer
 

blowdart18

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In Jeffreys Bay, in particular, municipal revenues from traditional utilities like electricity and water are not growing in-line with their population.

Well I wonder why Charlie, what could be the reason for that :unsure::whistling:
 

noxibox

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The way municipalities are run in South Africa just stinks. Why are municipalities even necessary in this day and age? Every service that a municipality provides can be privatised and provided by a private company if the law allowed for it. Municipalities have just become failed SOE's that are feeding troughs for corrupt local politicians.
The funny part is you think that won't end up more expensive. You might even think the service would be better.
 

Johand

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Municipalities have been an obstacle to fibre rollout from the beginning and this measures will only subdue investment and keep cities dumb.

If municipalities co-invest and help accelerate rollout they deserve a cut. For example - if they have monthly charges but they do the road crossings required for free then it would make sense. But charging companies for every meter and then have the audacity to charge rent later is insane. As it is they should stay away, because that is in the best interest of their citizens. How will low cost fibre in poor areas ever get deployed at those rates?

I can't remember the exact stats but a house passed for every 30 m of fibre with 1/3 uptake means R20 to R100 per subscriber per month and that EXCLUDES the backhaul. Ridiculous.
 

The Magster

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Here's and idea for the Metro, instead of introducing fees that slow down rollout of much needed infrastructure, how about you:
  • Stop Corruption
  • Reduce Waste
  • Reduce useless bureaucracy
  • Reduce costs
  • Improve efficiency
Then you won't have to increase rates.

Signed
Ratepayer
Oh man, you're a real comedian! :laugh:
 

konfab

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Jun 23, 2008
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Charging fibre companies for infrastructure they have already paid for is disgusting.

What the municipalities should rather do is invest in building the ducts for future fibre infrastructure themselves, and then lease that space to any fibre company that wants to make use of it.
 
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