SMME Forum defends minister

By Damian Clarkson, ITWeb junior journalist

Johannesburg, 22 Feb 2005

SMME Forum president Tebogo Khaas has defended communications minister Ivy Matsepe-Casaburri's recent "clarifications" of the value-added network service (VANS) licensing issue and has slated her critics.

The industry originally applauded the minister's decision to deregulate telecommunications and liberalise the market, until she announced - one day before deregulation was due - that it was never her intention to allow VANS operators to self-provide.

This led to widespread criticism of the minister from various industry players, who accused her of going back on her word.

According to Khaas, the criticisms ranged from being "extremely disappointing and destructive", to "not being in line with government's agenda to create jobs".

Minister faced litigation

Khaas believes the minister was justified in her decision, as she would have faced possible litigation had she allowed VANS to self-provide, as the Telecommunications Act prohibits it.

"The decision would also have - at the minimum - put paid to the dawn of the SNO [second national operator]. It would have also impaired the sustainability and business cases of all underserviced area licence [USAL] operators. Some of the members of the forum are USAL operators and would have been among those prejudiced were VANS allowed to self-provide," says Khaas.

The forum believes the minister's clarification of the issue was correct from the legal perspective and ensured USALs are sustainable and able to contribute towards affording underserviced communities access to ICT.

However, this view is not shared by a number of industry players. In an earlier statement, Communications Users Association of South Africa (CUASA) spokesman Ray Webber said the self-provision issue clearly indicated the minister was siding with the incumbent telecommunications operator (Telkom), rather than with business or the average South African.

"It would have effectively cut Telkom's overpriced infrastructure out of at least some of the voice over Internet Protocol [VOIP] loop, and enable both business and consumers to benefit from more competitive pricing structures for voice and data communications."

Timing is everything

The minister did not renege on any "promise", as some critics have maintained, as she merely provided more clarity on what she meant through her own determinations, says Khaas.

"If anything, the minister should be commended for moving with speed and fortitude in this case."

However, CUASA's Webber says the timing of the clarification was, if anything, another point of contention.

"As soon as the minister had made her announcements last year, CUASA pointed out that much clarity was needed with regard to various aspects of her statement. The minister took four months - and waited barely 24 hours before technologies such as VOIP became legal - to even attempt to clarify some of those issues," says Webber.

Criticising the critics

Khaas also attacked those who criticised Matsepe-Casaburri, saying they are guilty of not doing enough towards bridging the digital divide.

"The self-anointed spokespeople of the ICT consumers are the worst hypocrites. Their track record on issues affecting ICT access in black communities is acute in its absence.

"At the very least, they are not criticising those who should be doing a lot more for the under-privileged communities," says Khaas.

"SA's ISPs and VANS providers should bury their heads in collective shame for doing less in developing our communities and stop criticising the minister just for the sake of taking pitiful pot-shots at her."