The final phase towards establishing telecommunications legislation in South Africa
is finally underway, reports Leon Perlman
THE much touted initiative to provide “Universal”telephony services to South Africa’s un-wired rural millions looks set for a boost following a national colloquium on telecommunications policy.
“All Shall Call”is the message emanating from an intensive four day meeting between key players in the Magaliesburg late last week. Among the issues resolved was the establishment of an Independent Telecommunications Agency (ITA) along the lines of the present Independent Broadcast Authority (IBA).
The move marks the end of a four month consultative period following the launch of the Telecommunications Policy Green Paper in July this year. The 100 member conference resolved to appoint an Eminent Person Group (EPG) to assist the technical task team and the Minister of Posts, Telecommunications and Broadcasting, Dr Pallo Jordan, in drafting a White Paper on Telecommunications which will translate into legislation during the first quarter of 1996.
Legislation and direction is urgently needed. The telecommunications sector has been in flux while awaiting decisions on whether or not Telkom will be privatised, and whether competition to its core services in a deregulated environment will be allowed.
Parastatals like Transtel and Eskom, each with their massive internal telecommunications infrastructures, are keen to provide competition to Telkom.
Jordan, however, has often expressed his disdain for competition, citing the need to keep Telkom profitable in order for it to honour its Reconstruction and Development Programme (RDP) commitments to provide Universal Services, his paradigm for substantially increasing the tele-density of South Africa’s rural communities from the present one per 1 000.
The results of Telkom’s “Megaline”tender for the provision of one million new lines by the year 2000 will be announced soon.
But the hand of Australian consultants involved in restructuring the South African telecommunications sector was evident in the deliberations, with the conference resolving to “transform the telecommunications industry along the lines of the Australian model.”
It was also resolved that a Universal Service Agency should be established. Appointed by the minister, the agency’s objectives would be “to keep universal service at the centre of public policy concerns and on the public policy agenda.”It would also facilitate community involvement in the promotion and delivery of universal service-related matters.
The putative ITA would be a statutory body reporting to the minister. However, it would, in the medium term, ultimately be regulated by a single authority, a move favoured by many in the African National Congress.
No consensus was reached on the political hot potato of whether or not to retain Telkom’s exclusivity, nor on the introduction of a strategic equity partner for Telkom.
Telkom Chairman Dikgang Moseneke has in the past said that up to 30 percent of Telkom could be sold off, with at least 20 percent of that to an international investor. AT&T has been mooted as the potential investor.
The conference also resolved to support a strong local telecommunications equipment supply industry. Controversially, it resolved that there should be gradual and phased removal of any protection measures “which take cognisance of Telkom’s needs.”
A code of conduct for investors in the local manufacturing sector would also be considered. Empowerment programmes as well as support for the disabled would also be investigated.