Everyone has right to broadband

Johannesburg, 25 Oct 2007

Ubiquitous, affordable broadband access should no longer be seen as the privilege of a few, but a basic right for all South Africans, said public enterprises minister Alec Erwin.

He was addressing the October 2007 Imbizo, at Ugu District Municipality.

Erwin said the high cost of broadband in SA and the limited access of this technology to all South Africans hampers the country`s participation in the global economy. He added that Infraco is an intervention that aims to address this need.

The Infraco Bill was passed by all political parties, including the Democratic Alliance, in the National Assembly, last week. The new state-owned enterprise is to become government`s spearhead to reduce the overall cost of telecommunications.

"I am pleased that the Infraco Bill, which was recommended to the National Assembly last week, was unanimously approved by the House," reiterated Erwin, in his Imbizo address.

Social investment

Infraco is a strategic asset that will allow government to leverage communications infrastructure for economic growth, he noted.

"This is an investment intervention unlikely to have been made by the private sector, and will allow the state to address a glaring market failure, and bring broadband to the country`s under-developed and under-serviced areas."

The minister said areas such as the Ugu District Municipality, which have low ICT penetration, have the most potential to benefit from the establishment of an entity such as Infraco. "To retain skilled labour in the region and limit the migration of its educated workforce to the bigger cities by developing the ICT sector, is crucial as it will contribute to its economic development."

According to Erwin, rural areas will need to undergo intensive development measures in order for them to be able to access these technologies. "We concede that for the ICT industry to fully thrive in this area, other issues and, in particular, the issue of energy supply, need to be addressed."

He said providing electricity to all households in SA, as well as schools and clinics, is a top priority. "The restructuring of the electricity supply industry, through the establishment of the regional electricity distributors, is a necessary intervention which will address this key challenge."