Padayachie promises broadband 'fireworks`

By Damaria Senne, ITWeb senior journalist

Johannesburg, 08 Mar 2006

Deputy communications minister Roy Padayachie has promised there will be telecoms "fireworks" in 2006, especially in the broadband arena.

Padayachie spoke to ITWeb at Sangonet`s second "ICTs for Civil Society" conference in Fourways yesterday.

"I think the ICT sector is in for fireworks in the areas of broadband and also in increasing competition in the mobile space," he said.

However, he would not elaborate on what action the government planned to take in the liberalisation of the telecoms sector and to improve broadband access.

He confirmed that ministerial declarations based on the recommendations from the telecoms colloquia last year have been prepared and are awaiting minister Ivy Matsepe-Casaburri`s signature. The declarations will be announced in two to three weeks, he added.

In his keynote address, he noted that government`s focus in 2005 was to transform the legislative environment in the telecoms space and introduce opportunities for competition. This year, broadband will be dealt with, he said.

Padayachie said government would take serious measures to reduce telecoms costs. Unbundling the local loop, opening the international gateway and breaking Telkom`s monopoly of the SAT3 undersea cable, as well as exerting regulatory pressure to drive down mobile costs, are some of the strategies that will be employed, he commented. Municipalities will also be enabled to provide broadband access, he added.

SAT3 sensitivity

Padayachie said he saw no reason why government, as a significant shareholder to Telkom, should not have access to the shareholder agreement between the fixed-line operator and the other SAT3 shareholders.

To date, government has not seen the shareholder agreement contract. A Telkom spokesperson has noted that even if government asked to see it, the company would not be able to comply, as the document is a private agreement between operators which contains confidentiality clauses.

Asked whether government would consider legal action to gain access to the document, Padayachie maintained that the matter needed to be handled sensitively and the right to confidentiality respected.

The Sangonet conference ends tomorrow.