Telecommunications Industry Perspectives on the Politics of the Costs of Infrastructure

Robert Nkuna ()
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Robert Nkuna: North West University, School of Government Studies

Chapter 9 in Infrastructure and Regulation for Economic Development, 2025, pp 87-101 from Springer

Abstract: Abstract The telecommunications industryIndustry in South AfricaAfrica has played a critical role in the country’s economic transformationTransformation (empowerment/equity/access), digital inclusion efforts, and emergence as a key player in the Fourth Industrial Revolution. Yet, despite being one of the most dynamic industries, it has not been immune to political contestation, institutional fragmentationInstitutional fragmentation, and regulatory inertia. The failure to license high-demand radio frequency spectrum for nearly a decade, the stagnation of broadbandBroadband rollouts, and the uncertain implementation of cost-based pricing regulationRegulations have severely undermined market efficiencyEfficiency, investment certainty, and consumerConsumers affordability. As in the other case studies, this Chapter explores the complex dynamics surrounding the licensing of the radio frequency spectrum, leading to higher transaction costs for the industry and the economy as a whole. This has added to the competitive pressures in an industry that was liberalised at the onset of the democratic dispensation in South Africa.

Date: 2025
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DOI: 10.1007/978-3-032-10713-8_9

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