Close Menu
TechCentralTechCentral

    Subscribe to the newsletter

    Get the best South African technology news and analysis delivered to your e-mail inbox every morning.

    Facebook X (Twitter) YouTube LinkedIn
    WhatsApp Facebook X (Twitter) LinkedIn YouTube
    TechCentralTechCentral
    • News
      Icasa told to align on BEE in move that will favour Starlink - Solly Malatsi

      Icasa told to align on BEE in move that will favour Starlink

      12 December 2025
      South African solar industry faces a reality check

      South African solar industry faces a reality check

      12 December 2025
      OpenAI launches GPT-5.2 after 'code red' push to counter Google. Shelby Tauber/Reuters

      OpenAI launches GPT-5.2 after ‘code red’ push to counter Google

      12 December 2025

      A leaner BCX positions itself as market consolidator

      11 December 2025
      Australia has banned kids from social media. Should South Africa follow suit?

      Australia has banned kids from social media. Should South Africa follow suit?

      11 December 2025
    • World
      Oracle’s AI ambitions face scrutiny on earnings miss

      Oracle’s AI ambitions face scrutiny on earnings miss

      11 December 2025
      China will get Nvidia H200 chips - but not without paying Washington first

      China will get Nvidia H200 chips – but not without paying Washington first

      9 December 2025
      IBM reportedly close to $11-billion deal to buy Confluent - Arvind Krishna

      IBM reportedly close to $11-billion deal to buy Confluent

      8 December 2025
      Amazon and Google launch multi-cloud service for faster connectivity

      Amazon and Google launch multi-cloud service for faster connectivity

      1 December 2025
      Google makes final court plea to stop US breakup

      Google makes final court plea to stop US breakup

      21 November 2025
    • In-depth
      Black Friday goes digital in South Africa as online spending surges to record high

      Black Friday goes digital in South Africa as online spending surges to record high

      4 December 2025
      Canal+ plays hardball - and DStv viewers feel the pain

      Canal+ plays hardball – and DStv viewers feel the pain

      3 December 2025
      Jensen Huang Nvidia

      So, will China really win the AI race?

      14 November 2025
      Valve's Linux console takes aim at Microsoft's gaming empire

      Valve’s Linux console takes aim at Microsoft’s gaming empire

      13 November 2025
      iOCO's extraordinary comeback plan - Rhys Summerton

      iOCO’s extraordinary comeback plan

      28 October 2025
    • TCS
      TCS+ | Africa's digital transformation - unlocking AI through cloud and culture - Cliff de Wit Accelera Digital Group

      TCS+ | Cloud without culture won’t deliver AI: Accelera’s Cliff de Wit

      12 December 2025
      TCS+ | How Cloud on Demand helps partners thrive in the AWS ecosystem - Odwa Ndyaluvane and Xenia Rhode

      TCS+ | How Cloud On Demand helps partners thrive in the AWS ecosystem

      4 December 2025
      TCS | MTN Group CEO Ralph Mupita on competition, AI and the future of mobile

      TCS | Ralph Mupita on competition, AI and the future of mobile

      28 November 2025
      TCS | Dominic Cull on fixing South Africa's ICT policy bottlenecks

      TCS | Dominic Cull on fixing South Africa’s ICT policy bottlenecks

      21 November 2025
      TCS | BMW CEO Peter van Binsbergen on the future of South Africa's automotive industry

      TCS | BMW CEO Peter van Binsbergen on the future of South Africa’s automotive industry

      6 November 2025
    • Opinion
      Netflix, Warner Bros deal raises fresh headaches for MultiChoice - Duncan McLeod

      Netflix, Warner Bros deal raises fresh headaches for MultiChoice

      5 December 2025
      BIN scans, DDoS and the next cybercrime wave hitting South Africa's banks - Entersekt Gerhard Oosthuizen

      BIN scans, DDoS and the next cybercrime wave hitting South Africa’s banks

      3 December 2025
      Your data, your hardware: the DIY AI revolution is coming - Duncan McLeod

      Your data, your hardware: the DIY AI revolution is coming

      20 November 2025
      Zero Carbon Charge founder Joubert Roux

      The energy revolution South Africa can’t afford to miss

      20 November 2025
      It's time for a new approach to government IT spend in South Africa - Richard Firth

      It’s time for a new approach to government IT spend in South Africa

      19 November 2025
    • Company Hubs
      • Africa Data Centres
      • AfriGIS
      • Altron Digital Business
      • Altron Document Solutions
      • Altron Group
      • Arctic Wolf
      • AvertITD
      • Braintree
      • CallMiner
      • CambriLearn
      • CYBER1 Solutions
      • Digicloud Africa
      • Digimune
      • Domains.co.za
      • ESET
      • Euphoria Telecom
      • Incredible Business
      • iONLINE
      • IQbusiness
      • Iris Network Systems
      • LSD Open
      • NEC XON
      • Netstar
      • Network Platforms
      • Next DLP
      • Ovations
      • Paracon
      • Paratus
      • Q-KON
      • SevenC
      • SkyWire
      • Solid8 Technologies
      • Telit Cinterion
      • Tenable
      • Vertiv
      • Videri Digital
      • Vodacom Business
      • Wipro
      • Workday
      • XLink
    • Sections
      • AI and machine learning
      • Banking
      • Broadcasting and Media
      • Cloud services
      • Contact centres and CX
      • Cryptocurrencies
      • Education and skills
      • Electronics and hardware
      • Energy and sustainability
      • Enterprise software
      • Financial services
      • Information security
      • Internet and connectivity
      • Internet of Things
      • Investment
      • IT services
      • Lifestyle
      • Motoring
      • Public sector
      • Retail and e-commerce
      • Satellite communications
      • Science
      • SMEs and start-ups
      • Social media
      • Talent and leadership
      • Telecoms
    • Events
    • Advertise
    TechCentralTechCentral
    Home » Opinion » Duncan McLeod » Why ANC’s policy reboot is flawed

    Why ANC’s policy reboot is flawed

    By Editor7 March 2012
    Twitter LinkedIn Facebook WhatsApp Email Telegram Copy Link
    News Alerts
    WhatsApp

    By Duncan McLeod

    The ANC has proposed a sweeping overhaul of policy governing SA’s technology sector. For the most part, the proposals are reasonably business-friendly and should be welcomed. But the lingering conviction that state intervention will ensure the delivery of services to all is still a cause for concern.

    The proposals, contained in one of a series of hefty discussion documents released this week ahead of the party’s national policy conference in June, generally make for pretty good reading. Clearly, a lot of thought has gone into identifying the challenges facing the sector and what needs to be done to ensure all South Africans get access to high-speed broadband and the benefits that access brings, including a faster-growing economy.

    The ruling party must be commended for identifying the requirement for greater competition in the sector and the need to expand the number of players with access to scarce radio frequency spectrum to deliver next-generation broadband services. It’s a surprisingly centrist policy position paper (with a few exceptions) for a party that leans well to the left in the political spectrum.

    In other respects, though, the discussion document is rather naive, in that it ignores the role that well-financed incumbent operators — such as MTN, Telkom, Vodacom and Cell C — can play in building the next-generation networks that will expand access to more South Africans.

    In deference no doubt to its socialist alliance partners, it’s also silent on the pressing need to privatise Telkom fully, to free its management team from the dead hand of the state that limits its ability to restructure itself meaningfully in a competitive market. Rather, it talks about setting up a second Telkom (my choice of words) by merging two lame-duck state-owned enterprises, Sentech and Broadband Infraco. This focus on state-owned enterprises spoils what is otherwise a fairly well-argued overview of the challenges facing the sector and how to grow it.

    Neither Sentech nor Infraco deserves the special attention they enjoy in the document. Both have failed to prove their raison d’être. Sentech’s previous effort at building a broadband network was so spectacularly unsuccessful that it should never be given another chance to screw it up and waste taxpayers’ money. And Infraco, the brainchild of that misguided communist and former cabinet minister Alec Erwin, admits freely that the company is struggling to remain competitive where private-sector players are undercutting its prices. Infraco’s assets should be sold off to the highest bidder.

    Public enterprises minister Malusi Gigaba would do the country a favour by flogging off Infraco to a company that can make more efficient use of its infrastructure. It’s unfortunate, then, that privatisation is anathema to Gigaba, who appears more interested in building a political power base through an ever-expanding role for the state-owned enterprises in his portfolio.

    The ANC’s discussion paper should be lauded for proposing that spectrum allocations — especially in the important 800MHz and 2,6GHz frequency bands that will be used for fourth-generation mobile broadband services — will be used to foster new infrastructure competition in the sector.

    But the party is placing a little too much emphasis on encouraging new players into the infrastructure game without asking who will invest the billions of rand needed. Though fostering competition is laudable, the ANC should remember it’s the incumbent operators that have the financial and technical ability to build these networks. Excluding them from the process could ultimately do more damage than good. Balance is imperative.

    That said, the discussion paper is an important step forward. At the very least, it deserves rigorous interrogation and debate.

    • Duncan McLeod is editor of TechCentral; this column is also published in Financial Mail
    • Subscribe to our free daily newsletter
    • Follow us on Twitter or on Google+ or on Facebook
    • Visit our sister website, SportsCentral (still in beta)


    Alec Erwin ANC Broadband Infraco Cell C Duncan McLeod Malusi Gigaba MTN Sentech Telkom Vodacom
    Subscribe to TechCentral Subscribe to TechCentral
    Share. Facebook Twitter LinkedIn WhatsApp Telegram Email Copy Link
    Previous ArticleGoogle presses Play, killing Android Market
    Next Article MTN seeks 20m new subscribers

    Related Posts

    A leaner BCX positions itself as market consolidator

    11 December 2025
    Vodacom follows MTN with post-paid price hikes

    Vodacom follows MTN with post-paid price hikes

    11 December 2025
    Above-inflation price hikes to hit MTN customers

    Above-inflation price hikes to hit MTN customers

    10 December 2025
    Company News
    When the physical world goes online: the new front line of cyber risk - Snode Technologies

    When the physical world goes online: the new front line of cyber risk

    12 December 2025
    Endless possibilities with Adapt IT Telecoms' unified VAS platform - Matthew Seabrook

    Endless possibilities with Adapt IT Telecoms’ unified VAS platform

    11 December 2025
    Securing IoT connectivity: how MSB Micro Systems keeps devices in check

    Securing IoT connectivity: how MSB Micro Systems keeps devices in check

    11 December 2025
    Opinion
    Netflix, Warner Bros deal raises fresh headaches for MultiChoice - Duncan McLeod

    Netflix, Warner Bros deal raises fresh headaches for MultiChoice

    5 December 2025
    BIN scans, DDoS and the next cybercrime wave hitting South Africa's banks - Entersekt Gerhard Oosthuizen

    BIN scans, DDoS and the next cybercrime wave hitting South Africa’s banks

    3 December 2025
    Your data, your hardware: the DIY AI revolution is coming - Duncan McLeod

    Your data, your hardware: the DIY AI revolution is coming

    20 November 2025

    Subscribe to Updates

    Get the best South African technology news and analysis delivered to your e-mail inbox every morning.

    Latest Posts
    Icasa told to align on BEE in move that will favour Starlink - Solly Malatsi

    Icasa told to align on BEE in move that will favour Starlink

    12 December 2025
    South African solar industry faces a reality check

    South African solar industry faces a reality check

    12 December 2025
    TCS+ | Africa's digital transformation - unlocking AI through cloud and culture - Cliff de Wit Accelera Digital Group

    TCS+ | Cloud without culture won’t deliver AI: Accelera’s Cliff de Wit

    12 December 2025
    OpenAI launches GPT-5.2 after 'code red' push to counter Google. Shelby Tauber/Reuters

    OpenAI launches GPT-5.2 after ‘code red’ push to counter Google

    12 December 2025
    © 2009 - 2025 NewsCentral Media
    • Cookie policy (ZA)
    • TechCentral – privacy and Popia

    Type above and press Enter to search. Press Esc to cancel.

    Manage consent

    TechCentral uses cookies to enhance its offerings. Consenting to these technologies allows us to serve you better. Not consenting or withdrawing consent may adversely affect certain features and functions of the website.

    Functional Always active
    The technical storage or access is strictly necessary for the legitimate purpose of enabling the use of a specific service explicitly requested by the subscriber or user, or for the sole purpose of carrying out the transmission of a communication over an electronic communications network.
    Preferences
    The technical storage or access is necessary for the legitimate purpose of storing preferences that are not requested by the subscriber or user.
    Statistics
    The technical storage or access that is used exclusively for statistical purposes. The technical storage or access that is used exclusively for anonymous statistical purposes. Without a subpoena, voluntary compliance on the part of your Internet Service Provider, or additional records from a third party, information stored or retrieved for this purpose alone cannot usually be used to identify you.
    Marketing
    The technical storage or access is required to create user profiles to send advertising, or to track the user on a website or across several websites for similar marketing purposes.
    • Manage options
    • Manage services
    • Manage {vendor_count} vendors
    • Read more about these purposes
    View preferences
    • {title}
    • {title}
    • {title}