Communications minister Solly Malatsi is holding ongoing engagements with mobile network operators to discuss challenges facing the telecoms sector, including policy-related red tape and obstacles to reducing data costs.
During a video interview with ITWeb on the side-lines of Cell C’s brand refresh launch, in Johannesburg last week, Malatsi discussed his key priority areas for the telecoms sector since taking office in June.
These include plans to amend policies that restrict operational efficiencies and growth in the sector, lowering the cost to communicate for citizens and creating a conducive environment to increase investment opportunities.
Malatsi took over as Department of Communications and Digital Technologies minister as part of the Government of National Unity, with predecessor Mondli Gungubele serving as deputy minister.
The department is charged with driving SA’s ICT agenda and development of the digital economy.
According to Malatsi, the engagements with operators seek to bring the needs of the telecoms industry to his attention, relating to his priority areas, and further explore how operators can work together with government on strategies to mitigate key challenges plaguing the sector.
“We are currently engaging with all stakeholders in the ICT sector and this includes mobile network operators. It is a thorough and meticulous process that will then inform our policy review, and see what interventions are necessary.
“My assessment of the telecoms sector is that it has a lot of potential. Ithas been hamstrung by a lot of tension around policy uncertainty, policydeadlocks and the current ICT regulatory environment.
“What I have done since taking office is to be deliberate about extensive stakeholder engagement to establish two key things. Firstly, to get their assessment of the opportunities they feel are suffocated by regulation so that as government, we can help to unlock them. Secondly, we need to know their long-term views on the potential investment opportunities.”
According to Malatsi, any new policy that will be introduced in the telecoms sector will be in line with the objectives of the Government of National Unity, and it is, therefore, crucial that policy is inclusive of all the key players in the ICT sector.
South African mobile operators have for years been vocal about the adverse effect of policy-related red tape, which in some instances hampers offshore investment opportunities. They have also echoed concerns around the dire impact of the theft and vandalism of telecommunications infrastructure and tower batteries, which compromises network quality. These issues are among the biggest hindrances to the growth of the sector.
The Independent Communications Authority of South Africa previously called on communities to assist in guarding and protecting critical infrastructure, and asked intelligence services to prioritise the safeguarding and protection of critical telecoms infrastructure.
“Network operators are spending billions in reinvesting in vandalised infrastructure and stolen batteries, which are a source of power during power cuts. These all contribute to driving up costs for consumers,” said Malatsi.
“Once we have established all the factors that drive up the cost of communication, we will say to the mobile operators: within your own lane, this is what you can do to reduce the cost to communicate.”
According to the minister, the consultative process also includes discussions around significantly increasing the digital population – a target that largely hinges on reducing the cost of mobile devices and data.
According to Statista, in January, 45.3 million South Africans had internet access. An overwhelming majority access the internet via their mobile phones, it notes.
When analysing data traffic, the department has observed that millions of South Africans still rely on 2G and 3G – which encompass a large number of mobile connections, according to the minister.
“We are looking at how potential investments in the telecoms sector can help government realise its goals, which is to digitally connect more South Africans. We know for a fact that accessibility is a major thing.
“One thing I have been adamant about is removing obstacles to connectivity. In order to have access to connectivity, two key things must happen. Firstly, people must have access to a device; secondly, they must have reliable connectivity. Smart devices are currently classified as luxury goods, meaning there are associated taxes that drive up the cost.”
According to the minister, owning a smartphone is not a luxury, but a basic necessity, and it should, therefore, be classified as such, in order to lower the cost of these devices.
“We are looking at engaging National Treasury on possible reduction of import duties for devices. Secondly, we are looking at the threshold of what constitutes luxury goods.
“One of my goals is to make sure we connect South Africans to opportunities, be it for jobs, entertainment, or investment. There is a recognition that even the cost of data is a factor, but we need to look at facts that drive the costs across the board. Because, at the end of the day, the consumer carries the weight of all these associated costs,” he concluded.
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