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R9bn needed for universal coverage

Nicola Mawson
By Nicola Mawson, Contributor.
Johannesburg, 25 Jul 2014
The Universal Service and Access Agency of SA aims to provide broadband to 195 under-serviced rural municipalities by 2019.
The Universal Service and Access Agency of SA aims to provide broadband to 195 under-serviced rural municipalities by 2019.

The Universal Service and Access Agency of SA (USAASA) estimates it will cost in the region of R9 billion to fill the access gap so that the National Development Plan's aim of 100% broadband penetration by 2020, at speeds of at least 2mbps, can be fulfilled.

According to the agency's research, there is currently 86.4% access to 2G, and boosting this to 98.2% will require $9.2 million - or R94.7 million. Filling the state broadband void will require another R1.78 billion, to get to 78% coverage from the current 49%. Moving 3G coverage from 65% to 70% will require another R6.3 billion.

The agency has determined there is both a market gap and an access gap. The market gap can be filled by the private sector, while the access gap will require subsidies to be made available to operators to fill the void.

Prioritising

Spokesperson Khulekani Ntshangase notes the agency's research, undertaken last year but continuously updated, has reviewed the access gap down to ward level to provide a view of which areas have the biggest need. He notes the agency would like to see operators prioritising areas with the greatest need.

Ntshangase explains the figures will never be final because the cost of deploying technology continually changes. He adds there has been a considerable reduction in the cost of fibre, for example, which would have cost R650 000 a kilometre to roll-out last May, and is now around R450 000.

USAASA works will all licensed operators as well as other government agencies in a bid to fill the gaps, says Ntshangase. He adds the agency is issuing tenders for specific areas and has issued bids for coverage in the Ratlou local municipality in the North West province, and for Joe Morolong local municipality in the Northern Cape. "Infrastructure roll-out is a national priority that requires joint effort."

Ntshangase notes government already has considerable infrastructure in the ground, such as through Broadband Infraco and Intersite - a Passenger Rail Agency of South Africa subsidiary - which will trim the burden on the state. He adds USAASA is constantly talking with industry to get it to play its part, and the response has been positive.

USAASA's main focus is on underserviced areas, and its projected spending requirements will focus on those regions, says Ntshangase. Among USAASA's targets is to roll-out broadband to 195 under-serviced rural municipalities by 2019, as well as provide coverage to 24 136 schools, 1 135 police stations, and 4 000 healthcare facilities.

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