Developing countries need foreign investment to finance the building of infrastructure and the only way to achieve this is through a "strong, fair and independent regulatory body", former US federal communications commissioner Andrew Barrett said at the opening of the Tel.Com Africa 2002 conference in Johannesburg this morning.
The idea that you can cushion the incumbent until it is ready for competition does nobody any good and just sells your soul to the incumbent for another few years.
Ewan Sutherland<I>,</I> executive, International Telecommunications Users Group director
Regulation and competition in the telecommunications sector were top of the agenda at the opening session, which included strong calls for the immediate opening up of the industry, as well as for developing telecommunications projects that meet the unique needs of developing countries.
International Telecommunications Users Group executive director Ewan Sutherland pushed the point further, saying it is important for countries such as SA to open up the market to competition as quickly as possible. "The idea that you can cushion the incumbent until it is ready for competition does nobody any good and just sells your soul to the incumbent for another few years."
Sutherland said too many countries had followed the "bad example" set by countries like the UK that have established a duopoly in the sector with resultant high costs and low service delivery.
Barrett said the effectiveness of regulation depended on what the relevant authorities wanted for their country. "The question that has to be asked is whether the regulations are meant to achieve redistribution of wealth or broader economic development."
He said there were four key areas that needed to be satisfied in drawing up regulations: the elected officials and legislature; the customer; the local incumbent; and the investors.
Barrett stressed the overriding importance of the relevant investors to the development of telecommunications in developing countries. "It is great to have social goals and value-adds, but in order to get these it is most important to attract investors." For this, he said, regulations needed to be strong, as well as legally and economically sound.
Sutherland said international best practice indicated it was best to open up markets as soon as possible and not allow delays in the process. "The real catch is there is too little time to make mistakes because other people are ahead of us already and others are attracting investors ... delays caused by legal processes always benefit the incumbent."
The other key issue dominating the opening session was the bridging of the digital divide. Gerard Dega, VP of Alcatel France, sketched an outline of his company`s "digital bridge initiative".
Dega, a member of president Thabo Mbeki`s presidential task force, stressed the need for public/private partnerships in the funding of network services. He said Internet access and services in developing countries would not leapfrog development if it "merely emulates international trends. We still need to invest in an Internet suitable to Third World circumstances."
The opening address was due to be delivered by communications minister Ivy Matsepe-Casaburri, who was unable to attend because she is in Parliament today defending the broadcasting bill. She did, however, send a short statement in which she called for the industry to "sharpen its competitive skills and locate ourselves strategically ... to play an increasing role on the continent".
The three-day conference at the Sandton Convention Centre in Johannesburg is running in conjunction with the Tel.Com Africa 2002 exhibition until the end of this week.
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