Broadband, telephone operators reach an agreement

Broadband, one of the key components for telecommunications of the new millennium.

The country’s leading telecommunications companies have reached an agreement with the government to keep their broadband licences until 2028. In exchange, they will be able to purchase at least 30% of the country’s new Wireless Open Access Network.

The news was announced by the South African Ministry of Communication. It was certainly not a simple agreement to be signed, which came following a series of negotiations that had initially seem major operators, including MTN and Vodacom, reject the state proposal that only provided for the use of the national network.

The government’s goal is to create a single broadband network to which all networks are connected.
In a press release, Telkom, the leading broadband operator in South Africa, welcomed the Ministry’s study on the functioning of the national network.

“The use of a national network enables small operators to enter and become part of the market, although we are opposed to the possibility of auctioning the unused network, given that this would consolidate the current duopoly and would have a negative effect on consumer”, wrote Telkom in its statement.

This therefore means that we are heading towards a dimension in which small operators will easily be able to enter the business, occupying their own share of the market.

If you are interested in learning more about the costs of creating broadband and fiber optics in Africa, you can read this article.