Data may fall depending on the cost of additional spectrum

In his State of the Nation Address last month, President Cyril Ramaphosa said the government will start a process to release additional spectrum by August after missing a few deadlines.

South Africa's high data price is said to be due to too little radio frequencies allocated to the mobile industry.

Whether data will fall or not is dependant on the cost of this additional spectrum, according to Business Insider.

Joanne Joseph spoke to World Wide Worx managing director Arthur Goldstuck to find out more.

He says a decrease in data costs is not a done deal.

What may well happen is that government decides to allocate only small amount of the more appropriate spectrum to the major operators...

Arthur Goldstuck, Managing director - World Wide Worx

For them only to get a small slice of the spectrum means that they are still going to have to divide it up in a way that is not just efficient but can reach the maximum number of people.

Arthur Goldstuck, Managing director - World Wide Worx

The other side of it is what it's going to cost all those players to get hold of that spectrum because government has been looking at an auction model where they are going to essentially bid for slices of spectrum.

Arthur Goldstuck, Managing director - World Wide Worx

If the prices go too high, then of course that cost is going to be passed on to the consumer.

Arthur Goldstuck, Managing director - World Wide Worx

Click on the link below to find out more...


This article first appeared on 702 : Data may fall depending on the cost of additional spectrum


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