R200 million to supply broadband for 13 million households
The Department of Communications and Digital Technologies has rolled over R200 million from its budget to provide 13 million households with broadband.
This is according to National Treasury’s individual budget vote documents that accompanied finance minister Enoch Godongwana’s Medium Term Budget Policy Statements for 2022.
The R200 million was part of phase 2 of the Presidential Employment Stimulus.
President Cyril Ramaphosa launched the initiative in 2020, intending to use public investment to support employment opportunities in the wake of the Covid–19 pandemic.
The goal was to support people during South Africa’s Covid–19 lockdown and in the aftermath.
It allocated R346 million to expand broadband connectivity in the country.
During the first phase, it aimed to reach a million people by building Wi-Fi hotspots within walking distance from where they live and through direct home connections in low-income areas.
“In Phase One of the Presidential Employment Stimulus, stakeholders are collaborating in the design of incentives to connect low-income communities to high speed, affordable broadband internet, with the intention of supporting this as part of the medium-term stimulus strategy,” government stated.
“These initiatives, together, will ensure that low-income communities are at the front of the queue for affordable access, ensuring greater equity in the distribution of broadband infrastructure and creating a more level playing field in the process.”
The remaining R200 million of the budget for phase 2 of the Presidential Employment Stimulus broadband initiative has been rolled to the Broadband Access Fund.
“[This] will enable 13 million households to access broadband internet at an affordable rate and competitive speed,” the Department of Communications and Digital Technologies budget vote states.
That works out to R15.38 per household — not much money with which to roll out broadband infrastructure, or even build Wi-Fi access points within walking distance of several homes.
The department said earlier this year that it would subsidise home connectivity and public Wi-Fi hotspots in low-income households and rural communities nationally with the fund.
Communications minister Khumbudzo Ntshavheni also announced earlier this year that South Africa aims to give every household 10GB of free monthly data.
It is unclear how this project would be funded.
Ntshavheni said that government is working on a plan to deliver on this promise, adding that the goal is for all households to have 50GB each month by the 2025/6 financial year.
Its short-term goal is to offer 10GB to every household by 2023/24.
Cell C chief legal officer Zahir Williams previously told MyBroadband their main concern is the financial impact of the initiative.
“Cell C notes that to date no formal policy, legislative or regulatory processes, have commenced in relation to a proposal which has massive cost implications for all Mobile Network Operators,” said Williams.
“Cell C awaits the commencement of these processes, which normally include stakeholder consultations and processes that allow for affected parties to highlight relevant concerns,” he said.
“For a smaller operator like Cell C, the main concern is the financial impact of providing free data and the serious risk that the huge costs involved, will not be sustainable.”
MTN also noted that it isn’t clear how the free data allocation would be funded.
“At this stage, it is not clear how the process will work and who will fund the 10GB monthly,” an MTN spokesperson told MyBroadband.
“However, MTN is willing to work with the Minister and various stakeholders to advance South Africa’s efforts towards building the digital economy and reducing [the] digital divide.”
Loading ...