If this article is correct, it is quite shocking. Anyone who has followed the telecoms industry in South Africa will know that the government keeps claiming that the market has failed, yet the market has never been given much opportunity to succeed. During the last decade of “managed liberalisation”, a raft of telecoms services and infrastructure projects were simply illegal, and were either the exclusive domain of the incumbent monopoly, or limited to a few select licence-holders. Meanwhile, the government singularly failed to bring most telecoms services to the people, which was, it said, the purpose of its policy. One of the biggest hurdles for South Africa (as some who read this blog have already discovered) is the fact that only one major undersea cable supplies all of the country’s international bandwidth, and the southern tip of Africa is pretty far from the internet’s backbone.
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