The Department of Communications and Digital Technologies (DCDT) must createan enabling environment for investment in the ICT sector.
This will help contribute to the country’s job creation prospects, says communications and digital technologies minister Solly Malatsi, in an interview with ITWeb.
“The ICT sector plays a crucial role in the economy of the country. Everything we do has to be geared towards…making sure we achieve our goal of 100% universal access to connectivity, because connectivity has become essential across the board.
“It’s therefore important that whatever our approach is, it must always be mindful of creating the space for the ICT sector to thrive, for more South Africans to be connected and lessen barriers that make it difficult to be online.”
Malatsi took over as DCDT minister as part of the Government of National Unity, with predecessor Mondli Gungubele serving as the department’s deputy minister.
The department is charged with driving SA’s ICT agenda and development of the digital economy.
Removing barriers
Key among Malatsi’s observations when it comes to the cost to communicate is around the pricing of smartphones and investment in broadband infrastructure.
However, there is no easy fix, with multiple factors to be considered, according to the minister.
Malatsi reveals that plans to further reduce the cost to communicate have not been cast in stone as yet and the process of engagement is still ongoing.“In these types of environment, there’s often an obsession to do things within the first 100 days, etc.
“Here we need to realise the winds emerge over a period of time, but we have to look at the barriers to South Africans being connected. One of those is the fact that smartphones and smart devices are really unaffordable to the average South African and that places an obstacle.
“We are moving away from 2G and 3G devices, but that’s where the majority of poor South Africans still rely on those devices. One of the things I’m determined to seek a solution for – through engagements with National Treasury – is setting a threshold for pricing smartphones.
“Taxes are imposed on smartphones because they are categorised as luxury items, but there is nothing luxury about a device or instrument that enables you to do daily activities. In many parts of the world, a smart device is a basic tool for life, doing work, entrepreneurs to do business, or for learners to receive learning material and do their schoolwork.
“This is something that I’ll be dedicating a lot of time towards and find a resolution to.”
Malatsi adds there needs to be a concerted effort to increase investment in broadband infrastructure, and explore the regulatory obstacles that have made it difficult to have the required level.
“Ultimately, these two things – individually or collectively – also contribute to the cost of data. This is a by-product of where there’s limited infrastructural investment in broadband; this drives up costs and one of those costs then becomes data.”
South Africa’s campaign for lower data costs can be traced back to 2016, when citizens took to social media to express their frustrations with local mobile operators, resulting in the #DataMustFall movement receiving widespread media attention and attracting Parliament’s notice.
Amid calls from incumbent and past communications ministers for reduction in the cost to communicate, the Competition Commission’s (CompCom’s) data services market inquiry in December 2019 found the price of data in SA was considerably higher than in many other countries. The CompCom recommended that telcos reduce data costs.
South African mobile operators contend they have made great strides in reducing the costs of mobile data since the last spectrum auction.
On easing the red tape for new and international entrants into the sector, Malatsi says for the department, there are specific areas within its control, notably in terms of certain regulations and policies.
Others are requirements from the Department of Trade and Industry, which is about the ownership structure of any company that seeks to do business in SA.
“The president has given Cabinet marching orders by saying we need to look at where the impediments and obstacles to investments are and work creatively to remove those, to create an enabling environment for investments to thrive and prosper.
“What I’m currently doing is looking at the policies, regulations and impediments that have held back market competition, or made it difficult for new entrants to enter this space. Additionally, what are the impediments that have made it difficult for key players in the sector to broaden and expand their investments. This doesn’t relate to one company per se…my view is that regulation should be an enabler, rather than an impediment.”
Overall, the minister has a positive outlook on the future prospects of the country’s ICT sector. “It has a lot of potential to be a major player in driving inclusive economic growth and unlocking opportunities for job creation.
“I think there’s always going to be contestation with regards to policy-making between the sector and government, but I believe with much more deliberate, inclusive stakeholder engagement, we can have a robust relationship in the sector.”
Share