{"id":191456,"date":"2017-08-10T12:59:21","date_gmt":"2017-08-10T10:59:21","guid":{"rendered":"https:\/\/businesstech.co.za\/news\/?p=191456"},"modified":"2017-08-10T12:59:40","modified_gmt":"2017-08-10T10:59:40","slug":"this-graph-shows-how-governments-proposed-new-network-could-be-a-huge-flop","status":"publish","type":"post","link":"https:\/\/businesstech.co.za\/news\/mobile\/191456\/this-graph-shows-how-governments-proposed-new-network-could-be-a-huge-flop\/","title":{"rendered":"This graph shows how government&#8217;s proposed new network could be a huge flop"},"content":{"rendered":"<p>At the end of 2016, government finally took a hard line on the much-debated topic of spectrum in South Africa.<\/p>\n<p>In the\u00a0September amendment to the National ICT Policy White Paper, the government stated\u00a0that\u00a0radio frequency spectrum must be\u00a0assigned to a national wireless open access network (WOAN).<\/p>\n<p>It also suggested that radio frequency licenses would be taken away from Vodacom, MTN, Cell C, and Telkom to incorporate\u00a0their capacity into a WOAN.<\/p>\n<p>The WOAN would essentially act as\u00a0a single wholesale network instead of relying on competing mobile networks to deliver mobile broadband services in their country.<\/p>\n<p>Citizens are promised better coverage, more competition, and as a result, more affordable prices.<\/p>\n<p>However, a new study by the GSMA shows that these plans are likely wildly ambitious &#8211; if indeed they roll out at all.<\/p>\n<p>The study found that, of the\u00a0five countries originally considering this option, only one &#8211; Rwanda &#8211; has rolled out a network.<\/p>\n<p>The Rwandan WOAN has failed to deliver on numerous promises it originally made, many of which are similar to those proposed in South Africa.<\/p>\n<p><a  data-lightbox=\"post-image\" href=\"https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2017\/08\/GSMA-1.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-191494\" src=\"https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2017\/08\/GSMA-1.jpg\" alt=\"\" width=\"600\" height=\"515\" srcset=\"https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2017\/08\/GSMA-1.jpg 771w, https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2017\/08\/GSMA-1-300x258.jpg 300w, https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2017\/08\/GSMA-1-768x659.jpg 768w\" sizes=\"auto, (max-width: 600px) 100vw, 600px\" \/><\/a><\/p>\n<h3 class=\"my-4\"><strong>Going backwards<\/strong><\/h3>\n<p>The report shows that countries are more likely to be hampered by the technology, as operators are forced to buy in with no discernible benefit.<\/p>\n<p>&#8220;There is no sign mobile broadband services have become more affordable because of the government intervention, according to data from the regulator&#8217;s website,&#8221; said the report.<\/p>\n<p>&#8220;This contrasts with the cost of voice services, which has fallen over the same period.&#8221;<\/p>\n<p>The below graph shows how data prices increased across the board in Rwanda (Airtel and Tigo) &#8211; despite the fact that the WOAN has already been instituted in the country.<\/p>\n<p>It also shows how, over the same period, MTN has increased its data prices.<\/p>\n<p><a  data-lightbox=\"post-image\" href=\"https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2017\/08\/GSMA-2.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-191500\" src=\"https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2017\/08\/GSMA-2.jpg\" alt=\"\" width=\"600\" height=\"440\" srcset=\"https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2017\/08\/GSMA-2.jpg 825w, https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2017\/08\/GSMA-2-300x220.jpg 300w, https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2017\/08\/GSMA-2-768x563.jpg 768w\" sizes=\"auto, (max-width: 600px) 100vw, 600px\" \/><\/a><\/p>\n<p>&#8220;Irrespective of its motives, the government is putting a lot of faith in an unproven model,&#8221; said GSMA, speaking on South Africa.<\/p>\n<p>&#8220;The repercussions, if the project goes ahead, could be irreversible and result in a negative impact to the country\u2019s economy. If the project goes ahead as proposed in the White Paper, it will have repercussions on the structure of the industry and the country&#8217;s economy.&#8221;<\/p>\n<p>&#8220;The critical role mobile broadband plays in the global economy and, especially, in the economies of developmentally advanced markets like South Africa should be carefully considered.&#8221;<\/p>\n<hr \/>\n<p><strong>Read:<a href=\"https:\/\/businesstech.co.za\/news\/telecommunications\/191306\/vodacom-claims-it-has-already-dropped-effective-data-prices-by-44-in-3-years\/\" target=\"_blank\" rel=\"noopener\"> Vodacom claims it has already dropped data prices by 44% in 3 years<\/a><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Government has promised a new &#8220;super network&#8221; &#8211; a WOAN &#8211; which will allow Vodacom, MTN, Cell C, Telkom and other ISPs to use a single wholesale network which promises better coverage, more competition, and  affordable prices.<\/p>\n","protected":false},"author":10,"featured_media":187003,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[34],"tags":[1750,26],"class_list":["post-191456","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-mobile","tag-gsma","tag-headline"],"_links":{"self":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/191456","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/users\/10"}],"replies":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/comments?post=191456"}],"version-history":[{"count":8,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/191456\/revisions"}],"predecessor-version":[{"id":191542,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/191456\/revisions\/191542"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media\/187003"}],"wp:attachment":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media?parent=191456"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/categories?post=191456"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/tags?post=191456"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}