53 Cellphone towers shut down in South Africa due to theft, vandalism

South Africa’s infrastructure is being stolen. The latest casualty is mobile-phone company MTH, which has announced that it has lost 53 cellphone towers in Gauteng, the country’s industrial heartland and had to shut them down.

The company said it was losing millions due to the vandalism and theft of tower batteries. The 53 towers have been completely destroyed.

In the first half of 2019, the cost to the industry has reached an unsustainable tipping-point with MTN General Manager: Network Operations, Ernest Paul, saying the damage to towers and infrastructure is far exceeding the cost of repairing and replacing batteries and equipment.

Another major problem is that some acts of vandalism are so severe that hundreds of towers around the country are at risk of being permanently shut down, putting strain on the network and potentially diminishing the quality of the service provided to customers.

Cellular companies have in recent times been hit by rising incidents of theft of tower batteries, causing network disruptions for customers.

MTN said it managed to recover batteries valued at nearly R1 million in the past week alone with help of la enforcement authorities and whistleblowers. The company lost 73 batteries across the country in April. One battery reportedly costs between R30,000 and R40,000.

Paul said as many as 89 cell towers across the country were currently on hold as they await replacement batteries and fixing. Of the 53 towers being shut down, 39 are in Pretoria and 15 in Johannesburg.

“This situation leaves many South Africans without access to network services either because of downtime caused by repeated maintenance and repairs or in the extreme case of towers being terminated, where the regular theft and vandalism renders towers unsustainable. This impacts on consumer’s access to emergency services, effective business operations and connecting with loved ones,” said Paul.

“This is a national problem and more communities and people need to realise they may experience no service at some point if this continues, as loss of services and network quality can range from a 2 to 5km radius to 15km on some sites and affect 5,000 to 20,000 people at any given time.”

According to Paul, the cost of fixing towers so they can be brought back online can be as much as R350 million, adding that his company has already fixed 100 sites at a high cost.

“Cellular companies cannot do this alone. A broader initiative needs to be driven by communities, the private sector, police and prosecutors. We have therefore adopted a 360-degree plan that permeates across our business and have noticed that when combined with greater community awareness and involvement, an immediate dent is made in criminal activities.”

Turkcell seeking billions from MTN for Iran

mtniranTurkish cellphone company Turkcell has opened a lawsuit in South Africa against rival telecoms company MTN Group seeking damages for losses it says it incurred in Iran.

Turkcell filed a $4.2-billion lawsuit in Washington last year alleging the Johannesburg-based cellphone giant used bribery to win a mobile licence in Iran that was first awarded to Turkcell.

It dropped the suit in May after a US Supreme Court ruling in a separate case made clear that US courts would not have jurisdiction in a matter involving two foreign firms in a dispute outside the United States.

“In a continuation of this process, Turkcell today [Wednesday] opened a lawsuit against MTN in the South Gauteng high court in Johannesburg seeking damages for losses incurred as a result of MTN’s actions,” the Turkish company said.

In its US filing, Turkcell claimed MTN won the Iranian contract in 2005 by offering to use its influence in Pretoria to help Tehran obtain military hardware and sway South Africa’s votes at the International Atomic Energy Agency.

‘Brazen orchestra of corruption’
Backed by a collection of alleged MTN internal documents including emails, invoices, memos and presentations, Turkcell’s lawsuit accused the South African company of a “staggeringly brazen orchestra of corruption”.

MTN rejected the Turkcell allegations and appointed a retired British judge to lead an external investigation into them. That probe dismissed the accusations as “a fabric of lies, distortions and inventions”.

An MTN spokesperson declined immediate comment. – Reuters

Ripping off the poor, compliments of Icasa

icasaSouth Africa’s communications regulator has been failing to perform and allowing mobile service companies to “rip off” the poor, MPs say.

Members of Parliament’s labour and public enterprises select committee on Wednesday were briefed by the Independent Communications Authority of South Africa (Icasa) on the high cost of broadband and cellphone calls.

During the briefing, African National Congress MP Livhuhani Mabija said the committee had been experiencing “a lot of problems with Icasa”, and suggested it was suffering from a disease.

“According to my personal understanding, analysis, and diagnosis … there is a very dangerous cancer … that is eating Icasa.

“And, before a thorough examination is done, and there is a diagnosis and medication to heal it, our masses are going to be suffering. The poorest of the poor are going to suffer. Something needs to be done.”

She said Icasa was not playing the role expected of it. “We are not happy about the product. They [Icasa] are not giving us what is expected of them. This is very serious. Heads must start rolling,” Mabija said.

Earlier, Icasa senior marketing manager Christian Mhlanga showed members a graph indicating that the cost of using pre-paid mobile phones in South Africa was “way above” that of most other African countries.

“The cost to communicate in our country is too high,” he said, adding that Icasa was taking steps to address this.

‘Plagued’
The committee also heard from communications department deputy director general Themba Phiri, who said the mobile market in South Africa was dominated by the two biggest operators – MTN and Vodacom. Between them, they had over 91% of the market. He said the telecommunications sector was “plagued with high prices”.

In a recent study, South Africa was ranked 30th out of 46 “as having the most expensive pre-paid mobile tariffs among African countries”.

He also pointed out that the South African telecommunications sector “grew from about R7-billion in 1992, to over R100-billion in 2009”.

Among outcomes of this growth were high retail wholesale prices, and pricing information being presented in such a complex manner “that even the most sophisticated consumer cannot comprehend for informed decision making”, Phiri said.

Committee chairperson Priscilla Themba lambasted senior Icasa officials present at the briefing, including the authority’s chairperson Stephen Mncube, telling them their presentation was “not up to what we expected”.

ANC MP Mbuyiselo Jacobs wanted to know when “the rot had started” at Icasa. “Because Icasa is the regulator and supplier of licences. [Yet] it supplies them without any restrictions; it just gives.”

He suggested mobile service companies could do whatever they liked. “That is why these companies are regulating themselves. That’s why they are putting such high prices, and no-one is monitoring that.”

‘Ripped off’
Jacobs also accused the cellphone service companies of “ripping off” the poor. “You [Icasa] say … South Africa is ranked 30th out of 46 countries as having the most expensive pre-paid mobile tariffs. And this is meant for the poor because the ordinary people [use] pre-paid. They do not use contracts.

“So it means they [the companies] are ripping off the poor … and now, what is the function of Icasa if we allow that our people should be ripped off?”

Cellphones were an essential means of communication nowadays. “So why do we have to make it expensive …? I’m not happy at all.”

Jacobs further suggested mobile service providers were determining prices among themselves. “They are talking among themselves on how to determine the prices, and we are not there to monitor, or to bring them [the prices] down … they are talking among themselves, and we are not protecting our own people,” he said.

Committee members also called for a review of existing legislation so that mobile service companies which wanted to operate in South Africa could “dance to the music we play”.

Price regulation
Phiri said existing legislation – the Electronic Communications Act – did not make provision for price regulation. “We do not have a regime of a definite price regulation, where you can say the minimum must be this, and the maximum shall be that.

However, this was an issue that “the ICT policy review, having been launched at a ministerial level, has to look at”, he said.

Phiri said the matter of high pre-paid tariffs was “a huge problem”.

Wednesday’s committee meeting comes at the same time Parliament’s communications portfolio committee is conducting public hearings in three provinces on the high cost of communication, including mobile tariffs, in South Africa.

A recent international survey ranked the country 117 out of 140 countries in terms of mobile tariffs. – Sapa