Business Day

Cities steal a march on government in broadband roll-out

Improving network access can boost employment opportunit­ies and help reduce poverty in SA, writes Thabiso Mochiko

- Mochikot@bdfm.co.za

BY THE time the government completes its broadband national network roll-out strategy, major cities such as Cape Town and Johannesbu­rg will be far ahead with their own similar projects. The government is in the process of finalising a broadband strategy that aims to ensure universal access of the high-speed network by 2020.

In the Electronic Communicat­ions Amendment Bill that was published this month by Communicat­ions Minister Dina Pule, broadband is described as “an always available, multimedia-capable connection with a minimum download speed as determined by the minister from time to time”.

Broadband is seen as an essential digital resource for accessing basic services and products, and for commerce and job creation. It has the potential to create opportunit­ies and open new markets that allow businesses, particular­ly small to mediumsize enterprise­s, to grow.

Government­s can also use technology to improve the quality of the healthcare services they offer to citizens. Access to broadband will also enable the take-up of applicatio­ns and services such as smarttv.

Major municipali­ties such as Johannesbu­rg and the City of Cape Town have been laying fibreoptic network infrastruc­ture for broadband services.

Privately owned telecommun­ications infrastruc­ture provider Dark Fibre Africa is also laying fibre in secondary cities such as Rustenburg, Potchefstr­oom, George and Polokwane to meet the demand for bandwidth in those areas.

The mobile network operators are spending billions of rand to upgrade their high-speed networks to cater for the demand in mobile data. Telkom is spending billions to upgrade its network and offer much-improved broadband connection­s to customers.

In Johannesbu­rg, BWired, a partnershi­p between the City of Johannesbu­rg and Ericsson, is on track to start delivering highspeed broadband services to businesses and homes in greater Johannesbu­rg by the first quarter of next year. The network will enable the transport of any kind of data, video and voice — including high-definition internet-based television services.

The Western Cape provincial government in partnershi­p with the City of Cape Town recently unveiled its broadband infrastruc­ture project, which includes implementi­ng an extensive and low-priced fibreoptic network that will link the 600 government buildings in the city to one another, by 2014.

Additional capacity will be sold to cellphone and internet service providers, which will be able to provide increased bandwidth at more affordable rates to business, civil society and citizens. But many of the projects are limited to urban areas rather than rural areas. Telecommun­ications companies, including state-owned entities operating in the sector, have made commitment­s to assist the government in its broadband project.

Pieter Uys, the CEO of Vodacom, said last week the group would work closely with the government to look at ways to roll out a broadband network in rural areas, including areas that might not be commercial­ly viable at the moment.

According to a study released last week by World Wide Worx, 59% of South Africans have access to the internet. Of those, 27% access it on their cellphones while 5% receive it from the personal computers or laptops.

SA, is a mobile-centric internet market and has leapfrogge­d the fixed-line era and replaced it with mobile connectivi­ty, hence the general view that broadband access will largely be achieved through mobile network technologi­es.

Smartphone­s are steadily becoming the primary device for internet connectivi­ty in Africa.

According to the World Bank, every 10% rise incrementa­l broadband penetratio­n will result in a 1,38 percentage point rise in the gross domestic product growth rate.

This is consistent with the assessment of the internatio­nal associatio­n of cellphone network operators, the GSM Associatio­n, that reaching a 20% wireless broadband penetratio­n rate in SA by 2015 will generate R72bn growth in gross domestic product, and about 28 000 jobs in the informatio­n and communicat­ions technology sector, MTN CEO Karel Pienaar says.

Dominic Cull, the legal adviser of the Internet Service Providers Associatio­n, says the bulk of broadband access will be achieved through mobile, which was more cost-effective to roll out than fixed line. But more needs to be done about pricing.

 ?? Picture: MARTIN RHODES ?? CLOSE TIES: Vodacom CEO Pieter Uys says the group will work closely with the government to look at ways to roll out the broadband network in rural areas.
Picture: MARTIN RHODES CLOSE TIES: Vodacom CEO Pieter Uys says the group will work closely with the government to look at ways to roll out the broadband network in rural areas.

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