If the goals of the SA Connect initiatives are met, service providers stand to get over $600 million revenue per month.
This is according to Jens Langenhorst, deputy chair at the Wireless Access Providers' Association, speaking yesterday during the Future Wireless Technologies Forum in Midrand.
SA Connect, the country's broadband policy and strategy, was adopted by cabinet in December 2013. The policy and associated strategy outline several projects to boost broadband connectivity and access in the country.
It states by 2020, 90% of the population should have a 5Mbps service and the overall vision is that the cost of broadband services should not exceed 2.5% of the average population's monthly income.
The Department of Telecommunications and Postal Service has received R720 million for the SA Connect initiative, with minister Siyabonga Cwele reportedly saying the money will not be enough to deliver on broadband services.
Based on estimated GDP per capita of 2020, that works out to the service costs of roughly R140 to R170 per month, said Langenhorst.
"The interesting thing is if industry and government were to achieve this goal of 90% of the population getting broadband in the year 2020, then the total revenue will be over $600 million per month."
Dr Angus Hay, GM at Neotel, noted that SA's Internet penetration rate stands at 4.8 million although only a quarter of these can be classified as true broadband. "True broadband involves high-definition video content as well as low latency," he said.
Langenhorst believes the private sector is investing more towards broadband roll-out, which will lead to the realisation of the SA Connect goals.
"It is still quite evident the private sector is the major investor in ICT infrastructure in SA today. Much of that is still in predominantly urban areas or areas that have the money to pay for such services," he pointed out.
Nonetheless, he said, there are a handful of market entrants who are not necessarily disrupting the market but are targeting the less affluent societies in SA.
He believes to connect more citizens in SA, especially the less affluent, the traditional pay for service model will not be sufficient but government funding - local, regional or even national - in much the way that the other three basic utilities are paid for already is needed.
"We see examples in the City of Tshwane (Project Isizwe) and City of Cape Town already," he pointed out. "The SA Connect goals are ambitious - that is what a vision is for, to challenge us all. I believe that facilitating the discussion, debate and sharing of ideas is an ideal way to promote and, hopefully, accelerate our path towards achieving the goals."