Madeleine Wackernagel : TAKING STOCK
The state telecommunications monopoly could be forgiven for feeling victimised: in the space of only one week it is rapped over the knuckles for not following the correct procedures on a tariff hike and loses its bid to have sole control over the Internet.
Never the most popular parastatal – tales of mis-billing, unco-operative customer care and bureaucracy are all too familiar to hapless consumers – one cannot help indulging a moment of schadenfreude. At last, it gets its come-uppance and the regulator, for a change, gets to flex some muscles. But the battle is far from won. Telkom, it seems, will continue to test the watchdog, pushing the limits to establish the boundaries.
Rows between regulator and regulated are normal. But Telkom is in danger of overstepping the line. The arguments it presented in its submission to the South African Telecommunications Regulator (Satra) over Internet access were typical of a monopoly that has yet to acknowledge its days are numbered.
Telkom came very late to the Internet party, only cottoning on to its potential once local service providers were happily ensconced. But arguing that the terms of its deregulation – a five-year monopoly — entitled it to sole control was disingenuous to say the least. It regularly trots out the “universal service” argument to justify its power; this occasion was no different.
And Satra, to its credit, wasn’t having any of it. Instead, it turned that logic on its head, arguing that competition was the most efficient way of ensuring the widest possible access to the Net.
Satra’s move not only established its own credentials but brought South African Internet service provision in line with the rest of the world, preventing the nationalisation of an industry that by definition can only flourish if free access is assured.
But Telkom hasn’t learnt the lesson and is threatening to take legal advice over the decision. A childish response and a wasteful exercise.
Far better it concentrates on following the correct procedures over tariff increases and gets on with the job of complying with its licence. Satra is keen to take the row out of the media and back to the debating table but Telkom continues to deny any wrongdoing.
More column inches devoted to the clash cannot do Telkom’s image any good. And while Satra is unlikely to revoke Telkom’s licence after only one breach of procedure, it is adamant the monopoly must not be allowed to get away with flouting the rules.
When the government decided to press ahead with the sale of a 30% stake to foreign equity partners, it was out of necessity rather than privatisation fervour. Any further delay and there might not be much to sell; with the rapid pace of technological advances, Telkom was in danger of being left behind in the new high-tech age.
But foreign investment alone wouldn’t do the trick, so, in terms of its licence, it is protected from competition for five years – time enough to turn the monolith around, it was thought. Judging by its actions in the past few weeks, there’s a long way to go. But to the millions of consumers who have no choice, change cannot come soon enough.