All political parties approved the amendment to the Electronic Communications (EC) Act in the National Assembly yesterday. However, the debate showed marked differences in views of the role and scope of state intervention in the ICT industry.
The EC Act Amendment Bill came before the main house of Parliament after having been introduced less than a month ago towards the end of the public debate on the Broadband Infraco Bill.
The amendment will facilitate the speedy licensing of government strategic initiatives, aimed particularly at reducing the cost of telecommunications - a stated Broadband Infraco objective.
It will allow the communications minister to make a policy directive to allow the Independent Communications Authority of SA (ICASA) to determine the terms and conditions of a licence for a state-owned entity.
Government`s main reason for the amendment is that the private sector has failed to bring down telecoms prices and this is inhibiting the cost of business. It, therefore, needs a strategic intervention in the form of Infraco that will provide a fibre optic network nationally and resell it on a wholesale basis.
Addressing failure
When introducing the Bill, communications minister Ivy Matsepe-Casaburri said: "The shrinking pool of global investment capital and the failed initiatives by the private sector to address the issue of costs to communicate, has led us to these critical steps of amending the Electronic Communications Act in line with the concept of a developmental state."
She said this amendment facilitates government intervention to ensure strategic infrastructure investment is provided to extend access to, and affordability of, ICT services.
"It also provides a framework for ICASA, our regulator, for licensing a public entity to achieve the strategic intention of reduction of costs and extension of access and affordability," Matsepe-Casaburri said.
Democratic Alliances communications spokesperson Dene Smuts countered this by saying the EC Act was designed to foster competition, but that S5(6) had the limitation in not allowing ICASA to issue its own invitations to apply for a licence as this was kept within the hands of the Department of Communications.
Red light
"Everyone has to wait until our honourable minister issues policy directions in terms of which ICASA can issue an invitation to apply, not only for big networks, but also for any licence in which a state-owned entity holds 25% or more," said Smuts.
"The light remained resolutely red. Enter the honourable public enterprises minister, the honourable Alec Erwin, to turn the light from red to green. Unfortunately, he did so using the only entities over which he holds sway, the state-owned enterprises," she added.
Suzanne Vos, of the Inkatha Freedom Party, echoed Smuts` views and said it was a pity the EC Act had to be tampered with. "We, in the IFP, will be watching developments very closely."
The ANC`s Randy Pieterse asked if Infraco was the only way to intervene to keep costs down.
Matsepe-Casaburri responded: "No, it is not the only way, but it is the only way for government to intervene."
The EC Act Amendment Bill will now go to the National Council of Provinces.
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