Current legislation limits South African telecommunications companies from participating in continent-wide opportunities and initiatives, says Internet Solutions (IS), which wants the Convergence Bill to change this.
The first-tier Internet service provider and Dimension Data subsidiary was commenting in Parliament last week during the public hearings into the proposed legislation. The Parliamentary Portfolio Committee on Communications is conducting the hearings.
IS was represented by Dimension Data chairman Andile Ngcaba (a former Department of Communications director-general), IS`s CEO Nagus MacRobert, new business development director Hillel Schrock and regulatory affairs manager Siyabonga Madyibi.
Ngcaba said that due to the current regulatory regime, IS was refused permission to participate in the East Africa Submarine System (Eassy) cable consortium.
"We need to alter our legislative framework so that local companies can participate on the African continent and organisations, such as Eassy, will recognise an entity such as IS," he said.
MacRobert said IS was poised to become the next-generation telco with technologies such as VOIP and broadband.
He said the slow uptake of its recently released ADSL services was largely due to the current pricing structure that effectively excluded wholesaling.
"The absence of a wholesale pricing regime leads to higher input costs for companies like IS, which translates into high input costs for the economy," he said.
Local content and schools
During today`s hearings, Alcatel SA CEO Linda Khumalo said there was not enough local content on the Internet to encourage local communities to make more use of the medium.
"One of the key areas of this Bill is to encourage convergence and to stimulate local content," he said.
The National Alliance of Independent Schools Associations argued for a change in the wording of the Convergence Bill to allow poorer private schools access to the Universal Service Fund (USF).
The organisation said 60% of private schools serve disadvantaged communities and these institutions should have some kind of access to the USF. It is mandated to help needy persons or organisations with the cost of accessing communications services.
The hearings continue tomorrow and Wednesday.
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