Strong action recommended for telecoms reform

By Damaria Senne, ITWeb senior journalist

Johannesburg, 11 Oct 2005

Strong words were used by government officials and the Independent Communications Authority of South Africa (ICASA) at the second phase of the Department of Communications-led colloquium on telecoms prices to emphasise their determination to ensure the lowering of the price.

The report from the colloquium working group presenting recommendations to lower telecoms prices also took a strong line on regulatory reforms.

Presented by working group chairperson Mandla Khuzwayo, the report looked at prices, Telkom and its service provisioning, universal access and the second economy, and underserviced area licensees (USALs).

The strongly-worded report addressed the issue at two levels: the need for effective competition as well as the need for effective regulation.

Telkom hit hard

Issues covered by the report included the need to lower wholesale pricing and interconnection charges. Telkom`s obligations would include installing lines on request, and the disconnection of lines would be banned.

The report recommends that Telkom roll-out infrastructure to provide universal service and be subsidised for uneconomic lines. However, Telkom will not be in a position to determine what lines can be classed as uneconomic.

The report also argued that access to basic telephony is a human right and by 2010 there should be a telephone within a 500 metre radius and each household should have access to telephony.

Mobile prices

The working group recommended the two-year contractual agreement between mobile service providers and consumers be reviewed to encourage take-up opportunities presented by number portability regulations.

ICASA chairperson Paris Mashile agreed. Contracts for six, 12, 18 and 24 months should be considered to enable consumers to have affordable choices, he said.

The group is also of the view that prepaid customers are being penalised and their funds may be being used to subsidise contract customers. Khuzwayo says it baffles him that consumers who pay upfront should be penalised for doing so, especially given the huge number of prepaid customers that mobile operators have.

Padayachie endorsed group

The delegates raised questions regarding the credentials of the working group members. These included what experience allowed them to make the recommendations, and did they consult with international experts?

Department of Communications deputy minister Roy Padayachie said he was confident that the working group has applied its mind to present these recommendations. "There must be no holy cows" in lowering telecoms prices and ensuring that digital opportunities are created for South Africans, he said. "Why should it be unthinkable that certain local calls should be free? Why should it be unthinkable that there should be no monthly rental on the telephone?" he asked.

The way forward

Stakeholders have the opportunity to present written reports to the department within the next two weeks. Speaking to ITWeb, Padayachie also said ministerial declarations would be made within a month. "There will not be another colloquium," he said. "It`s time to take action."