Government will commit R1.1bn towards the expansion of infrastructure for broadband internet connectivity in schools and government institutions. Finance Minister Nhlanhla Nene made this announcement during the budget speech.
The broadband roll-out in South Africa is part of critical government policy as the country eyes 100% connectivity by 2020. In no doubt, the money will go a long way in ensuring that this objective is realised. However, a document on the development of broadband internet says the government needs at least R10bn to build critical infrastructure.
Currently, internet cost is out of reach for the country’s majority. This situation is worsened by Telkom’s monopoly of the fixed line infrastructure. In the fixed market, Telkom is the sole provider of ADSL lines, of which the country has South Africa only has 800 000 ADSL subscribers. This is a very low number for a lower middle-income country.
