Telkom essential to broadband talks

SA's broadband policy will be approved by Cabinet before the end of the 2012/13 financial year.

Presenting on the policy at the Department of Communications' (DOC's) broadband workshop yesterday, chief director of ICT policy, research and development, Norman Munzhelele, said Telkom "has got to be involved" in any broadband strategy in the country.

"We can't talk broadband when we don't talk Telkom."

He added that "with an installed base of thousands of kilometres of fibre and many national, provincial and local points of presence, it is a natural focus point for any strategy".

Munzhelele also explained that Telkom's fibre network accounts for around 80% of the installed base.

"Extensive build out by Telkom and the mobile operators covers a significant percentage of the population, and satellite already covers the entire country and hence can be used as a gap-filler."

The chief director also said there is a need for the creation of a central framework to bring together all the broadband initiatives around the country to maximise efforts.

He explained that a "dig once" approach will allow for efficient rollout of broadband. This must be done through the integration of all initiatives.

Highlighting the importance of a comprehensive national broadband strategy, Munzhelele said there are many broadband-related initiatives under way in SA, but these are fragmented.

"To achieve the best outcomes without unnecessary or wasteful duplication of resources, a central framework is recommended that takes account of initiatives already in play or planned, and maps these on to national, provincial and local targets and needs."

He said the broadband strategy must address both demand and supply of broadband services and networks.

Munzhelele said market research from national studies conducted in 2011 showed that 93% of households had mobile phones, while only15% had fixed-lines. About 26% of households had a computer, while 10% had broadband Internet access at home. The fixed broadband penetration was 2%, mobile PC broadband penetration was 4% and the mobile phone broadband penetration was 10%.

He added that national broadband coverage consists of around 30% geographic coverage and 75% population coverage.

"Actual take-up of services is way lower. Affordability of service is seen as the main barrier to adoption."

Communications minister Dina Pule previously said the cost of broadband in SA is unaffordable for the vast majority of citizens.

"Wireless spectrum is the lifeblood of the communications industry. Spectrum assignments need to be smart, robust, and made under transparent governance in order to achieve the goal of timely and prompt awards of spectrum licences that are less likely to be challenged and hence delayed for years in legal or regulatory proceedings," said Munzhelele.

"Radio frequency spectrum is key and critical in the provision of broadband services. Radio frequency spectrum in its nature is a scarce and finite national resource.

"The policy will then see that the allocation of the spectrum for broadband follows principles of universal access, competition, BEE, and affordability.

"The policy will push for the investigation of how suitable frequency bands for broadband can be used for increased availability in under-serviced areas.

"We have allowed the market to dictate since 1993, but the market has not delivered to the majority of our people. We need to think differently."

In June 2010, Cabinet approved the National Broadband Policy implementation.

As part of policy implementation, an Intergovernmental Broadband Committee was established and launched by the ministry of communications. The policy did not have adequate provisions to support vision 2020 as agreed with industry stakeholders, for 100% broadband penetration.

"The broadband policy must ensure universal access to reliable, affordable and secure broadband services by 2020 and encourage sustainable usage," said Munzhelele.

He added that it must also articulate government's commitment to supporting digital inclusion and building an information society.

It must reduce the costs of broadband services in the country, while also clarifying the roles of government, state-owned entities (SOEs) and the private sector in achieving these aims.

The policy will see the implementation of regulatory measures to promote the availability of both publicly and privately-owned servitudes to facilitate rapid broadband rollout in the urban, rural and under-serviced areas.

"Government will support and encourage measures to encourage fibre to the premise by the private sector."

There are several funding options being considered for the rollout of broadband, according to Munzhelele.

The first is that government could capitalise an SOE to invest in broadband. It could also incentivise operators to offer services in the economically unattractive rural areas.

In this regard, government could provide a once-off grant up-front to cover some of the capital cost of the infrastructure, provide ongoing grants to cover all or part of the users' fees; or both grants could be targeted to benefit particular user groups.

Another funding option is to ring-fence equity and incentives provided by government.

The revised policy is to be presented to Cabinet for approval. It will be gazetted for public consultations.

Government collaboration with the industry will commence and the department expects to obtain Cabinet approval before the end of the 2012/13 financial year.

Pule asked the industry to avail itself to the department when input is required, but she emphasised that the DOC will not relegate its own duties to the industry.