Lloyd Gedye

Critics have called for a restructuring of the Universal Service Agency (USA) following the resignation of CEO Sam Gulube this week, citing the Department of Communications parastatal’s inability to deliver affordable communication to under-serviced areas.

It is a long way from a tiny Lebanese mountain village of 5 000 people to a boardroom in Johannesburg, but that is the story of Cell C CEO Talaat Laham. Laham heads a company in flux. Having captured a 10% market share in the South African mobile sector in the past four years, Cell C is positioning itself to take full advantage of the regulatory and technological changes that are set to shake up the sector in the next three years.

South African Airways’s cost structure, twice that of budget airlines, prevents it from competing against low-cost carriers, meaning that its stated intent of entering this market will ultimately be at the taxpayer’s expense. SAA will enter the budget market, which has grown 44% in four years, by year-end.

Black filmmakers and producers have complained that administrative bungling by the South African Broadcasting Corporation (SABC) is driving them to financial ruin.
Disgruntled filmmakers say a lack of coordination between the creative hub of the SABC and the financial and legal departments was preventing them from receiving payment for commissioned work.

President Thabo Mbeki has bounced the Icasa Amendment Bill back to Parliament, striking a blow in support of the independence of South Africa’s telecommunications regulator. The Bill was the subject of heated debate after amendments that stakeholders accused of undermining the regulator’s independence were passed by the National Council of Provinces.

Attempts by industry regulator the Independent Communications Authority of South Africa to bring more competition to the telecommunications market, by making radio spectrum available for low-cost mobile phones, are being resisted by state-owned telecoms company Sentech.

African universities have banded together to challenge high Internet bandwidth access costs by investing in the development of the new undersea cable on the east coast of Africa. Last August, universities from Kenya, Malawi, Mozambique, Rwanda and South Africa formed a collaborative regional body, in an attempt to lobby governments and gain access to low-cost bandwidth on the EASSy cable.

The government’s war against excessive pricing moved into the area of telephone call charges recently, with regulator the Independent Communications Authority of South Africa (Icasa) putting the spotlight on how so-called interconnect fees raise both landline and mobile costs. Mobile call costs could be slashed by 30% if Icasa wins its battle with landline and mobile operators, according to an independent expert.

It was the greatest one-day cricket game ever, with Internet blogs capturing the see-saw match that had the South Africans counted out even before they picked up a bat. But some Australian cricket fans may be wishing they had waited till after South Africa had batted on Sunday before they made their pronouncements about their side’s record score and South Africa’s dismal bowling.

The good news is that excessively high international bandwidth prices in Africa, caused by the monopolisation of the SAT-3 undersea cable, are to be challenged by the establishment of a new submarine cable on the east coast of Africa. The 9 900km EASSy cable is set to run from Port Sudan in the north to Durban, and will complete the fibre loop surrounding Africa.

The trucking industry is being allowed to ride roughshod over the South African motorist. Truckers pay more in toll fees, but very low amounts considering they are responsible for 10 000 times the damage to roads. Toll fees for heavy-duty trucks travelling on the N3 between Jo’burg and Durban add up R408. Motorists travelling in light passenger cars pay R110 for the same trip.

Gauteng motorists will be amazed to learn that a price war has been taking place at the fuel pumps, it’s just that discounts have not been passed on to the consumer. The Competition Tribunal on Thursday blocked the proposed R12-billion merger of Sasol and Engen’s liquid fuels businesses into a new entity to be called Uhambo.

The Independent Communications Authority of South Africa (Icasa) is extremely generous to its problem child Telkom compared with French and Mauritian regulators, which also set prices on South Africa’s key Internet link to the rest of the world, the SAT-3 undersea cable.

The government talks the talk; Deputy President Phumzile Mlambo-Ngcuka in a briefing at Parliament announced that cheaper broadband was a pillar of its growth strategy. But it is walking the walk too; soon-to-be promulgated legislation taking on Telkom’s SAT-3 monopoly will declare any exclusivity provision contained in licence agreements invalid.

A local high-tech company has scooped a $14-million deal to import 400 fuel-cell units, a revolutionary technology that could change the face of power supply in South Africa. The United States-manufactured units use a chemical reaction between hydrogen, oxygen and a catalyst to create energy with water as a by-product.

The Scorpions have been asked to investigate possible fraud relating to the fuel crisis that has gripped the country in recent days. South African Institute for Corporate Fraud Management president Bart Henderson said the shortages amounted to a national security issue.

The Cabinet approved the Gautrain Rapid Rail last week amid sharp criticism over its costs and viability. The R20-billion earmarked for its construction could move a whole lot more people in different ways, a few simple calculations reveal. It could deliver 6 250km of rail — or 80 times the distance — if it was used for regular rail infrastructure.

South African arms manufacturer Denel expects to realise R500-million in the sale of its non-core assets, which forms part of the government’s policy to streamline parastatals and raise much-needed capital. Denel’s non-core assets include shopping malls, office parks, an electrical products company, a soya processing plant and IT companies.