Stimulated by demands made on broadband infrastructure during the pandemic, and on the need to improve digital services, the government in late 2021 began working on plans to roll out broadband services nationally by the end of 2023. This would update existing plans by which national coverage were expected to have been reached in 2030. Part of the wider plan includes completing the switchover to digital broadcasting by March 2022, which will release sub-GHz spectrum for mobile broadband services.
In addition, national coverage will rely on improved access to mobile broadband. The much-delayed multi-spectrum auction is scheduled by mid-2022. The MNOs have managed to address rising data traffic demand by refarming exsting spectrum concessions, though 5G services are still offered under a legacy principle using existing concessions in the 3.5GHz band. Conscious that this is unsatisfactory on a number of levels, the regulator in November 2021 announced plans to issue provisional spectrum licences to MNOs under the new regulations introduced as a response to the pandemic. This will enable licensees to increase capacity and improve service quality. The provisional licences will be in effect until athe full auction is held.
Key developments
Telkom enters the mobile financial services sector, renegotiates a roaming deal with MTN;
Government initiates plan to provide national broadband coverage by end-2023;
Regulator issues provisional spectrum licences under new regulations introduced as a response to the pandemic, MNOs leverage these to deploy 5G services;
Virgin Mobile stops trading in South Africa, after 15 years;
Government scraps plans for Wholesale Open Access Network;
Vumatel acquires 45% stake in HeroTel;
Vodacom Group sets up its own InfraCo after acquiring a 30% stake in Vodacom Group, launches its VodaPay m-payment app;
Report update includes the regulator's March 2022 report on the ICT sector, operator data to Q1 2022, updated Telecom Maturity Index charts and analyses, recent market developments.
Companies mentioned in this report
Vodacom, MTN (MTN Network Solutions), Cell C, Telkom (Heita, 8ta), Virgin Mobile, Neotel, Atlantic Internet Services, Business Connexion, Internet Solutions, Verizon Business, MWEB, Vox Telecom (DataPro), Sentech, iBurst (WBS, Blue Label), Liquid Intelligence Technologies, Virgin Mobile, Broadband InfraCo, Transtel, Eskom, SEACOM, Transtel, Eskom, SITA, Sentech, Dark Fibre Africa (DFA), FibreCo, eFive, WASACE.
