Agency hands R5m to USALs

Johannesburg, 27 Jan 2005

The underserviced areas licences (USALs) ball is once again rolling, with the Universal Service Agency (USA) providing cheques for R5 million to each of the licensed USALs to help kick-start their operations.

At a breakfast this morning attended by communications minister Ivy Matsepe-Casaburri and the six companies that are to be subsidised by the USA, the first subsidisation cheques were handed out. The companies are: Bokone Telecoms, Thinta Thinta Telecoms, Kingdom Communications, Karabo, Bokamoso and Ilizwi Telecoms.

The deployment of telecommunication services in underserviced areas is part of a job creation and poverty alleviation programme run by the government to improve the quality of life of the people living in the rural and remote areas of the country.

In keeping with its mandate of bridging the digital divide, the USA will subsidise the USALs up to a total of R15 million each over a period of three years, with the subsidy aimed at providing them with a much-needed kick-start to begin the roll-out of infrastructure in their regions.

"The USA doesn`t just want to see the USALs bridging the digital divide, rather we want to see them closing it, so that in the future, it is not necessary to go back and repair the bridge," says Chose Choeu, chairman of the USA board.

"The telecoms pie is growing all the time, because by licensing the USALs we are adding more customers to the market - even Telkom wants to see you succeed, so that its customers can talk to yours."

Matsepe-Casaburri told the players that she is not concerned with being a popular minister, as she is only concerned about doing her job properly.

"For me it is the people at the grassroots level who will judge whether I have delivered on the promises I have made regarding service provision," she said.

"I need you all to be passionate about your jobs, the people you are serving, your country and Africa as a whole - then we will be able to walk hand in hand down the road that leads to a better life for all.

"I want you to use this money wisely to develop your infrastructure and your human, technical and financial resources, in order to grow your businesses into a success. It will be tough at times, but I hope you look forward to the challenge," said Matsepe-Casaburri.

She also reminded small, medium and micro enterprises that the second phase of the USAL application process is under way, with an invitation to apply in the Government Gazette 27166 of 2005 on 11 January, with licences available in the provinces of Limpopo, KwaZulu-Natal, Free State, Gauteng, North West and Mpumalanga.