The R89 billion broadband question

Communications minister Dina Pule says that industry estimates suggest that it will cost somewhere between R60 billion and R89 billion to roll out broadband to all citizens of South Africa.

The Department of Communications (DoC) has set a target to deliver 100% broadband penetration in South Africa by 2020, and Pule reaffirmed her department’s commitment to reach this target. This may however be easier said than done.

The massive capital investment needed to achieve this target and the sheer scale of this project means, that even with the minister’s public-private partnership suggestion, it remains ambitious.

Pule explained that the DoC has not done their own studies to estimate the cost of a national broadband rollout, but said that some industry players had investigated the matter and their findings show that the cost will be somewhere between R60 billion and R89 billion.

Pule pointed out that this investment will not only help to get South Africans connected, but will also create around 200,000 jobs.

According to Pule the rollout of a national broadband network will create an estimated 160,000 new jobs.  The added labour force needed to maintain this network will bring the total jobs figure to around 200,000, said Pule.

It is currently not clear how Pule plans to raise the money to fund the DoC’s broadband target.