The development of broadband strategies by cities is critical to the development of a competitive telecoms environment, says deputy communications minister Roy Padayachie.
Speaking at the BMI-TechKnowledge Digital Cities Forum in Midrand this morning, Padayachie said ICT was essential to the achievement of sustainable socioeconomic growth.
Properly used, ICT offers huge potential for overcoming poverty and facilitating economic growth and development.
"It makes sense that every city and town should develop broadband strategies," he said.
Access to broadband had to be affordable, Padayachie stressed, if it was to be part of the solution to the country`s digital divide.
"It is critical to address cost," he said. "The high cost of access to telecommunication services continues to be a hindrance. If the Internet and all its socioeconomic benefits is to be accessible to all citizens, then broadband has to be part of the equation."
As cities developed their own broadband networks, they would reduce their own telecoms expenditure, increase access to telecoms services, and bring about higher penetration, he said.
But he pointed out that the issue was not without its challenges. "The regulatory and legal implications must be addressed by the regulator," he added.
New deal
Speaking at the same conference, BMI-T MD Denis Smit called for a "new telecoms deal" for the country`s second economy.
The terms "first" and "second" economies are informal classifications of the wealthy and sophisticated, and the marginalised segments of the population respectively.
Although it had been hoped that growth in the first economy would trickle down to the second, it was accepted that this was not the case, and government had clearly decided it needed to intervene in the second economy, Smit said.
"Telecoms and broadband are transformative forces, which is why they are so high on the agenda right now," he said.
He said the problem was not that of government, or Telkom or other parties alone, but of the whole nation.
Government could play a part in creating a new telecoms deal by applying pressure; funding the regulator (the Independent Communications Authority of SA) better; reducing input costs; restructuring how the Universal Service Fund worked; and rethinking the underserviced area licence (USAL) business model, which, although a good concept, was fatally flawed, he said.
Government should also support the concept of free units of use for the poor, support and encourage municipal networks, and craft a national broadband strategy.
He called on network operators to reduce prices; formulate offerings in the style of the Mzansi bank account; adopt a USAL; and partner with municipalities which elect to install networks.
The question of whether broadband was a right was being debated worldwide, Smit said, but an increasing number of voices were saying that it was a transformative power. "Can we cut off millions from this resource?" he asked.
The conference continues tomorrow.
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