News24

Ispa welcomes SA broadband fee rules

2012-03-28 14:50

Cape Town - The Internet Service Providers' Association (Ispa) has welcomed the implementation of the new regulatory framework governing the licence fees the for radio frequency spectrum.

Icasa (Independent Communications Authority of South Africa) has implemented a new cost framework that should reduce the cost of spectrum and is set to come into effect on April 1.

"The new regulations are designed to provide an economic incentive to encourage licence-holders to use spectrum efficiently and will dramatically lower the costs of frequency for point-to-point links, particularly in rural areas," said Dominic Cull, Ispa's regulatory adviser.

The new pricing model moves away from a fixed price of R770 per MHz per link per year to one that takes into account different uses of spectrum and the need to ensure that licensees occupy appropriate spectrum for these uses.

Outside of urban areas, the cost will be reduced to one tenth to incentivise rural area roll-out.

The department of communications has signed a contract to ensure 100% broadband penetration by 2020 and Ispa said that the new cost structure should assist in development of services.

"By rewarding those licence holders who use spectrum efficiently, the new regulations will help to ensure better service for consumers. And by lowering the price of connectivity, they are helping to increase competition and introduce more and more South Africans to affordable broadband services," Cull said.

World Bank statistics show that for every 10% increase in mobile penetration, there is a corresponding 0.8% increase in GDP.

Comments
  • Ben - 2012-03-28 15:37

    You'd think people would be smarter than launching something on April 1st....

  • Pieter Olivier - 2012-03-28 16:23

    This is a badly written article.

  • ludlowdj - 2012-03-29 12:35

    I sure the government will find another way to ensure it still get the money one way or another.

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