Call for Infraco info

By Paul Vecchiatto, ITWeb Cape Town correspondent

Cape Town, 07 Feb 2007

ICT and commercial organisations, which continue to complain about high connectivity costs, are concerned about the lack of clarity on government's proposed broadband provider Infraco.

They are also worried about the continued grip the state has on the telecommunications sector. It already owns a significant stake in Telkom, and holds 100% of national signal distributor Sentech, and indirectly has a 30% stake in second national operator Neotel.

An Internet Service Providers Association (ISPA) statement says it remains hopeful Infraco will potentially open up new opportunities for its members because the adjusted estimates of national expenditure released last year stated: "The intervention in national long-distance and international connectivity infrastructure should significantly reduce SA's broadband costs."

This suggests Infraco will break Telkom's stranglehold on the market by allowing Internet service providers to purchase capacity directly from it, it says.

Ironing out the details

Greg Massel, joint ISPA chairman, says: "Specifics that need to be ironed out before ISPA can wholeheartedly lend its support to the establishment of Infraco relate to licensing issues, shareholders, last mile access and particularly the relationship between Infraco and other state-owned enterprises."

A spokesperson for the Cape Regional Chamber of Commerce and Industry echoes these views. He notes there is an urgent need to rapidly reduce connectivity costs.

"While we need more competition in the market to help reduce broadband costs, we also need good regulation. For instance, ICASA [the Independent Communications Authority of SA] needs to step in and stop Telkom from charging two rentals on the same piece of copper wire," he says.

The spokesperson says government has released little information on the Infraco issue and the industry needs more clarity so it can make plans.