Broadband Infraco Disputes R16,000 Monthly Fee Allegations for Rural Schools Under SA Connect Program

BBI disputes claims that rural South African schools are charged R16,000 monthly for internet, asserting that SA Connect services are fully government-funded.

By: AXL Media

Published: Apr 3, 2026, 9:15 AM EDT

Source: Information for this report was sourced from MyBroadband

Contradictory Reports on Rural School Connectivity Costs

A significant dispute has emerged between South African state entities regarding the funding and accessibility of internet services in impoverished regions. A recent investment study by the Development Bank of Southern Africa (DBSA) alleges that Broadband Infraco (BBI) levies a monthly fee of R16,000 per facility on 599 schools participating in the SA Connect Programme. The report suggests that these majority non-fee-paying schools, located in some of the country’s most poverty-stricken areas like Vhembe, Limpopo, are effectively locked out of the digital era because they cannot afford the "privilege" of the connection.

Broadband Infraco Issues Formal Denial of School Levies

In a direct rebuttal to the DBSA findings, Broadband Infraco has characterized the investment study as inaccurate, asserting that there is no direct charge to educational institutions for SA Connect services. BBI management stated that the Department of Communications and Digital Technology (DCDT) provides the necessary funding for these connections as part of a broader government mandate to bridge the digital divide. The state-owned operator has formally requested that the DBSA verify its sources within the Department of Basic Education, which reportedly provided the initial figures cited in the bank's analysis.

Expansion Targets and Connectivity Milestones

The friction between departments comes as the SA Connect Programme enters its second phase, which launched on October 31, 2025. This ambitious stage aims to provide a minimum of 10 Mbps broadband to over 16,000 schools by 2029. However, parliamentary records from January 2026 reveal that progress has been slower than anticipated, with only 2,746 schools successfully connected to the internet. Minister Solly Malatsi allocated R710 million toward the initiative in July 2025, but the recent allegations of hidden costs have raised concerns about the transparency of how these funds are utilized at the school level.