President Cyril Ramaphosa has promised that the auctioning of high-demand spectrum for mobile telecommunications will benefit every citizen, especially the poor and those without access to the internet due to high costs or a lack of coverage.   

Among other things, the spectrum release is expected to reduce the cost of mobile data, expand network reach to rural and outlying areas and improve network quality, according to the president.

He made the remarks in his weekly Monday newsletter, indicating that the auction was a significant milestone in the country’s reform agenda.   

“The availability of this spectrum will contribute to economic transformation. It will allow many more people, especially those from remote areas and poor communities, to access digital resources and will improve their ability to participate in economic activity.”   

The Competition Commission found in December 2019 that the cost of data in SA was considerably higher than in many other countries. This would soon change, the president wrote.

“Every South African who uses a mobile device will feel the benefits of this reform, especially the poor and those who currently don’t access the internet due to high costs or a lack of coverage.   

This was critical for economic growth. “Cheaper data means that young people will have greater access to digital platforms to seek job opportunities online. Students will be able to access information and educational materials. Entrepreneurs will be able to start businesses and reach new markets,” wrote Ramaphosa.

The licensing of the spectrum was one of the major reforms the government was implementing to modernise and transform industries such as energy, telecommunications, transport and water provision.

“The use of this spectrum will also enable the rollout of 5G networks. These 5G networks will accelerate the process towards universal connectivity — where all South Africans are connected — and the deployment of the digital technologies and services that are driving the fourth Industrial Revolution.  

This, according to Ramaphosa, is a crucial step to bring SA back to the cutting edge of digital technology and ensure that the economy remains competitive.

Ramaphosa said the process of switching from analogue to digital broadcasting would soon be completed. The switch to digital was expected to also improve the TV watching experience, with many more channels and better picture and sound quality.  

“Digital migration will enable a massive leap forward in SA’s technological development. For poor households that are currently using an old analogue television, government is providing subsidised set-top boxes to help them make this switch.”

While the spectrum had taken time to take off due to policy drift, state incapacity and vested interests that were a feature of the era of state capture, Ramaphosa said the country would not be left behind in the digital era,

“We are determined that SA must not be left behind by the digital economy, just as we are determined that no community and no person should be left behind in experiencing the vast benefits of being digitally connected to the world.”

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