It could be at least a year before the government can regulate the high cost of data.
It is relying on two inquiries – the Icasa inquiry into ineffective competition in broadband markets and an inquiry by the Competition Commission into the high costs of data – to inform any decisions.
Both inquiries are expected to conclude in December, said communications minister Stella Ndabeni-Abrahams.
She said the purpose of the inquiries was to determine what drove the cost of data and how this could be fixed.
“The cost of data in South Africa is very high. South African consumers pay sometimes up to eight times what other consumers in different countries pay,” the minister said.
“Several benchmark reports, including studies by Icasa, show that Mobile Network Operators in South Africa that also operate in other countries on the continent, charge SA consumers more than they do in those countries in which they operate,” she said.
“Studies show that most South Africans cite the cost of data as a deterrent from using the internet or being online.
“Therefore, to address the issues of the digital divide and getting South Africans to participate in the digital society, the issue of cost of data and also the cost of end-user devices must be addressed, at a policy and regulatory level,” Ndabeni-Abrahams said.
The ANC, which unveiled its manifesto more than a week ago, has vowed to reduce the cost of data and extend free Wi-Fi to many more sites across the country.
Ndabeni-Abrahams said Icasa had attempted to implement the policy direction on price transparency that specifically deals with the expiry of data and allowing consumers to transfer data from their accounts to another consumer on the same network.
However, the process was halted because some networks have taken Icasa to court to give them more time to prepare to implement the regulations.
“The ministry therefore is seeking to engage with all involved parties to enable stakeholders to resolve matters without having to always institute legal processes.”
Ndabeni-Abrahams said her department planned to expand broadband infrastructure throughout the country through the SA Connect programme, which was already operational.
“SA Connect aims to connect all government facilities such as schools, hospitals, clinics and libraries.
“The connectivity plan will facilitate critical broadband infrastructure, thus also enabling Wi-Fi around government facilities,” she said.
The minister said the rollout was slow due to funding constraints, adding that an independent study by the Development Bank of SA was being conducted to ascertain the costs of rolling it out nationally.
“The outcome of the study will be submitted to National Treasury for funding.
“The funding availability will determine the timelines for the completion of the programme,” she said.
Ndabeni-Abrahams said the Universal Service and Access Agency of South Africa was also targeting rural municipalities to provide connectivity to close signal coverage gaps.