SA’s 5G development hampered by load shedding

South Africa’s digital economy’s next leap forward is being held back as persistent load shedding hampers the ability of telecommunications companies to invest in and further develop 5G services.

This is one of the primary motivators behind the Association of Comms and Technology’s (ACT) argument for the government to extend the rebate on diesel usage in the telecommunications sector.

Unfortunately, National Treasury is yet to respond to our efforts to have the rebate extended to the sector.

In March, the diesel rebate was advanced to food manufacturers who now join farming, forestry, fishing and mining in enjoying some relief from the crippling costs of generating their own power to offset load shedding.

The system refunds a portion of Road Accident Fund and fuel levies to those who are covered.

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The diesel bill for telcos in this financial year looks set to be more than R1 billion compared to R842 million last year, exacerbated by the 19 794 gigawatt hours shed by early September, which is more than all the load shedding between 2015 and 2022 combined.

Meanwhile, companies in this sector continue to make valuable and significant contributions to the economy.

Early last year, six qualified bidders spent R14.4 billion in the long-awaited spectrum action, all the proceeds of which went to the national fiscus – which desperately needs every rand that can be collected.

The auction was a major enabler of 5G as spectrum was previously constrained and did not allow for an effective implementation of the technology.

But, thanks to the significant spike in load shedding this year, resources that might have focused on 5G capabilities have instead been spent on keeping existing infrastructure working.

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It might be tempting to shrug off the importance of 5G as something that simply enables downloading movies at lightning-fast speed, but it is so much more.

This next generation technology is a major economic catalyst at a time when the domestic economy needs all the help it can get.

According to the World Economic Forum, internet connectivity enabled by 5G technology is expected to create about R55 trillion in economic value and over 22 million jobs globally by 2035.

In South Africa, 5G can help develop smart cities by connecting traffic lights and sensors to improve traffic flow, monitor air quality and manage energy consumption, for example. And 5G can deliver excellent educational experiences to students in remote and underserved areas.

In manufacturing, 5G can allow the real-time monitoring of production lines or coordinate the movements of multiple robots in a factory.

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Further, there is a practical race against time. In February this year, the department of communications and digital technologies gave telecommunications companies until 2028 to roll out 5G networks nationwide, including in remote areas.

The goal is to lower data prices and boost the development of new technologies.

Although there are recent signs of a reduction in the intensity of load shedding, we are nowhere near putting this crisis behind us.

The telecommunications sector cannot afford another year carrying the burden alone of keeping SA connected when the power is switched off.

Batyi is the CEO of the Association of Comms and Technology