When the African National Congress (ANC) came into power in 1994, it signalled the dawn of democracy in South Africa.
What it also meant was that the new ruling party inherited a range of problems from the outgoing apartheid National Party. In addition to the housing problem, water and sanitation, health problems and crime issues, the ANC had to take on the task of ensuring that the telecommunications sector ran smoothly.
Through the years government has successfully navigated through the choppy telecommunications waters, making significant inroads towards keeping South Africans connected and up to date with technological advancements. Since then, more mobile operators have entered the fray.
The mobile sector has become increasingly competitive as a result, with consumers having the freedom to choose whichever network operator they want. What has also changed significantly in the sector is the shift towards a data-centric lifestyle. As more people across the world use more smartphone technology, the demand for data continues to rise.
In South Africa, data cost structures have made the online space an elite one, making that digital divide in South Africa particularly severe.
Much of the blame has been placed on the ANC., leaving many people asking themselves, how is the ANC making data more expensive?
Why #DataMustFall:
The World Bank stated that the cost of mobile data in South Africa is high because regulation does not support competition. The body found that competition enforcement by the ANC has been lacking when it comes to telecommunications.
A study from Research ICT Africa found that South Africa had the fourth most expensive mobile data in 17 African countries.
The ANC has been criticised by opposition party DA for its lack of progress in advancing the country’s telecommunications sector.
How is the ANC making data more expensive?
The lack of availability of spectrum for wireless broadband services is the major cause of high data prices.
According to Kevin Lebone of the South African Institute of Race Relations (SAIRR):
“What’s keeping prices up is uncompetitive behaviour by Telkom. Most of the high data charges are because service providers have to ‘rent’ spectrum from Telkom, which virtually owns all communications infrastructure in the country.”