{"id":235014,"date":"2017-11-01T09:02:05","date_gmt":"2017-11-01T07:02:05","guid":{"rendered":"https:\/\/mybroadband.co.za\/news\/?p=235014"},"modified":"2017-11-01T09:04:24","modified_gmt":"2017-11-01T07:04:24","slug":"why-mobile-data-prices-arent-coming-down-faster","status":"publish","type":"post","link":"https:\/\/mybroadband.co.za\/news\/cellular\/235014-why-mobile-data-prices-arent-coming-down-faster.html","title":{"rendered":"Why mobile data prices aren\u2019t coming down faster"},"content":{"rendered":"<p>If the government released spectrum to mobile operators, the price of mobile data would come down faster.<\/p>\n<p>This is according to MTN SA CEO Godfrey Motsa, who told delegates at the 2017 MyBroadband Conference that\u00a0<a href=\"https:\/\/mybroadband.co.za\/news\/cellular\/234766-mtn-customers-can-expect-something-great-in-the-next-30-days.html\"><strong>data prices must decrease<\/strong><\/a>.<\/p>\n<p>He said data price cuts could be significant if operators had access to more spectrum &#8211; the\u00a0capacity wireless networks need to connect mobile devices to towers.<\/p>\n<p>Unfortunately, it is not possible to assign operators any available frequencies to use for their mobile networks, as devices are designed to work within certain bands.<\/p>\n<p>There is suitable spectrum trapped in the 800MHz band, waiting for South Africa\u2019s migration to digital TV to be completed &#8211; which has dragged on for years.<\/p>\n<p>Spectrum in the 2,600MHz band is also suitable for mobile networks and it has been lying dormant for years.<\/p>\n<p>The government appears to have decided to delay the allocation of 2,600MHz spectrum until the digital TV migration is completed, and it will be assigned along with the 800MHz band.<\/p>\n<p>With this spectrum, Motsa said MTN could cut the price of a 1GB prepaid data bundle\u00a0<a href=\"https:\/\/mybroadband.co.za\/news\/cellular\/234760-mobile-data-could-be-r50-per-gb-mtn.html\"><strong>to R50<\/strong><\/a>\u00a0and cut its out-of-bundle rate to 29c per megabyte.<\/p>\n<p>\u201cSpectrum is oxygen for networks. Spectrum reduces prices,\u201d said Motsa.<\/p>\n<p>He argued that South African operators are among the most spectrum-starved in the world, illustrating his point with the graph below.<\/p>\n<p><a href=\"https:\/\/mybroadband.co.za\/news\/wp-content\/uploads\/2017\/10\/Spectrum.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-235104 size-large\" src=\"https:\/\/mybroadband.co.za\/news\/wp-content\/uploads\/2017\/10\/Spectrum-640x323.jpg\" alt=\"Spectrum\" width=\"640\" height=\"323\" srcset=\"https:\/\/mybroadband.co.za\/news\/wp-content\/uploads\/2017\/10\/Spectrum-640x323.jpg 640w, https:\/\/mybroadband.co.za\/news\/wp-content\/uploads\/2017\/10\/Spectrum-600x303.jpg 600w, https:\/\/mybroadband.co.za\/news\/wp-content\/uploads\/2017\/10\/Spectrum-768x387.jpg 768w, https:\/\/mybroadband.co.za\/news\/wp-content\/uploads\/2017\/10\/Spectrum.jpg 1035w\" sizes=\"(max-width: 640px) 100vw, 640px\" \/><\/a><\/p>\n<h3 class=\"my-4\">Network capacity<\/h3>\n<p>Without spectrum, mobile networks have been forced to build more towers rather than add capacity to existing sites &#8211; a process they call densification.<\/p>\n<p>To illustrate the investment required to expand their network to meet demand, Motsa showed how MTN\u2019s capital expenditure has grown in recent years.<\/p>\n<p>\u201cThese numbers are so sky high because we don\u2019t have spectrum,\u201d said Motsa.<\/p>\n<p>He warned that it is not sustainable to keep investing such large sums of money into infrastructure.<\/p>\n<p>\u201cWe can\u2019t keep on pumping this amount of money, this increases prices for the poor.&#8221;<\/p>\n<p><a href=\"https:\/\/mybroadband.co.za\/news\/wp-content\/uploads\/2017\/10\/Capex.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-235106 size-large\" src=\"https:\/\/mybroadband.co.za\/news\/wp-content\/uploads\/2017\/10\/Capex-640x298.jpg\" alt=\"Spectrum\" width=\"640\" height=\"298\" srcset=\"https:\/\/mybroadband.co.za\/news\/wp-content\/uploads\/2017\/10\/Capex-640x298.jpg 640w, https:\/\/mybroadband.co.za\/news\/wp-content\/uploads\/2017\/10\/Capex-600x280.jpg 600w, https:\/\/mybroadband.co.za\/news\/wp-content\/uploads\/2017\/10\/Capex.jpg 727w\" sizes=\"(max-width: 640px) 100vw, 640px\" \/><\/a><\/p>\n<p><a href=\"https:\/\/mybroadband.co.za\/news\/wp-content\/uploads\/2017\/10\/Network.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-235108 size-large\" src=\"https:\/\/mybroadband.co.za\/news\/wp-content\/uploads\/2017\/10\/Network-640x269.jpg\" alt=\"Network\" width=\"640\" height=\"269\" srcset=\"https:\/\/mybroadband.co.za\/news\/wp-content\/uploads\/2017\/10\/Network-640x269.jpg 640w, https:\/\/mybroadband.co.za\/news\/wp-content\/uploads\/2017\/10\/Network-600x252.jpg 600w, https:\/\/mybroadband.co.za\/news\/wp-content\/uploads\/2017\/10\/Network.jpg 727w\" sizes=\"(max-width: 640px) 100vw, 640px\" \/><\/a><\/p>\n<h3 class=\"my-4\">Now read: <a href=\"https:\/\/mybroadband.co.za\/news\/cellular\/222980-cellphone-network-quality-will-suffer-in-south-africa-without-more-spectrum.html\">Cellphone network quality will suffer in South Africa without more spectrum<\/a><\/h3>\n","protected":false},"excerpt":{"rendered":"<p>The government must release spectrum to mobile operators, said MTN SA CEO Godfrey Motsa.<\/p>\n","protected":false},"author":15,"featured_media":230585,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_sma_x_autopost_status":"idle","_sma_x_autopost_error":"","_sma_x_post_id":"","_sma_facebook_post_id":"","_sma_instagram_post_id":"","_sma_threads_post_id":"","_sma_x_attempts":0,"footnotes":""},"categories":[14],"tags":[35061,35,42],"class_list":["post-235014","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-cellular","tag-godfrey-motsa","tag-headline","tag-mtn"],"_links":{"self":[{"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/posts\/235014"}],"collection":[{"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/users\/15"}],"replies":[{"embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/comments?post=235014"}],"version-history":[{"count":1,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/posts\/235014\/revisions"}],"predecessor-version":[{"id":235102,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/posts\/235014\/revisions\/235102"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/media\/230585"}],"wp:attachment":[{"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/media?parent=235014"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/categories?post=235014"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/tags?post=235014"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}