INDUSTRY WATCH
TOP : Peter Walsh , MD CommsCloud
BOTTOM : Paul Colmer , EXCO member , Wireless Access Providers Association
This is key to addressing African infrastructure challenges and ensuring inclusive development , especially in the agriculture , healthcare , and energy sectors . The future of IoT in Africa hinges on fostering collaboration and leveraging innovative solutions like cross-border SIM cards to drive connectivity , efficiency , and prosperity across the continent .
Construction of networks
In South Africa , the deployment of fibre networks is critically dependent on the acquisition of wayleaves , which are permissions granted by municipalities to trench roads and public spaces for infrastructure , as well as to provision aerial infrastructure like aerial fibre .
Unlike a centralised government-issued system , however , these permissions are controlled by individual municipalities , to a range of challenges and inconsistencies . One such revenue stream is the sale of wayleaves to Wireless Internet Service Providers and fibre network operators .
Each municipality has its own pricing and processing system for wayleaves . In some areas , the cost of obtaining a wayleave has been pushed so high that laying fibre has become economically unfeasible . This disparity in costs , combined with various approval processes , creates a significant barrier to uniform connectivity expansion .
The South African government has expressed a commitment to ensuring that no one is left behind in the drive for universal connectivity . The SAConnect initiative is central to this effort , with many small and medium-sized enterprises , SMEs receiving grants to connect large rural and regional areas wirelessly and with fibre . These SMEs are at the forefront of connecting underserved regions .
However , the path forward is fraught with challenges . Wireless Internet Service Providers need wireless operating licenses , town planning , and environmental impact studies to approve tower construction .
Although logistically manageable if the land is zoned for communications infrastructure , the process is still complex and costly .
Historically , many Wireless Internet Service Providers focused on providing wireless services only , but over time they have become open access partners to large fibre service providers . The industry has seen a shift where customers now expect free installation and routers , intensifying price wars .
This has squeezed profit margins to as low as R50 per month per client , making it hard for Wireless Internet Service Providers to sustain their operations . Consequently , rolling out their own fibre infrastructure has become a more viable option for many SME Wireless Internet Service Providers .
To deploy their own fibre , SMEs need to create their own networks , which involves applying for municipal wayleaves . The costs associated with wayleaves can range from around R8,000 to several hundred thousand rands . Some municipalities even require non-refundable deposits of hundreds of thousands of rands , with no guarantee of approval .
Arbitrary fees such as annual maintenance charges further burden SMEs , even though municipalities perform no maintenance once the fibre is laid .
The situation is exacerbated by the monopolistic practices of large fibre providers . There is anecdotal evidence suggesting that these providers influence municipal wayleave processes .
Anti-competitive behaviour undermines SMEs and contradicts the government ’ s goal of universal connectivity . The lack of a standardised , national regulatory framework for wayleaves allows larger operators to dominate the market , side-lining smaller competitors and stifling innovation .
South Africa ’ s cellular data coverage is extensive , but the high cost of cellular data renders it unaffordable for many , especially in regional and rural areas . This has perpetuated the digital divide , leaving a significant portion of the population unconnected .
Easing the regulatory and financial burdens on SME WISPs would enhance their ability to provide affordable wireless and fibre connectivity , benefiting everyone . Connectivity should be driven by market needs rather than manipulated by powerful operators . However , the entrenched , ineffective processes , and lack of transparency ensure that large operators continue to dominate , to the detriment of SMEs and the wider population . p
66 INTELLIGENTCIO AFRICA www . intelligentcio . com