The high cost of telecommunications in South Africa could be reduced if the duplication of infrastructure was avoided, and telecommunications operators were required to share network rollouts.
“The duplication of public and private infrastructure poses a challenge as it contributes to high deployment costs, which is ultimately passed on to consumers,” says Siyabonga Cwele, Minister of Telecommunications and Postal Services, presenting his budget in Parliament yesterday.
“To address these bottlenecks we will seek to direct ICASA to formulate regulations for infrastructure and facility sharing. These regulations will look into how public networks can be offered on a common carrier basis so as to facilitate cost savings and the entry of many players and the enhancement of competition.
“Government is committed to the establishment of an Open Access regime that allows those without access to critical public input resources like the spectrum, way leaves, rights of way and high sites, to enter the market on the same conditions as those who own the infrastructure,” Cwele adds.
“To this end the department will finalise, by October this year, a study on the Open Access Network that will inform how critical resources can be leveraged to ensure a competitive and open market that will unleash competition to drive down the cost to communicate in South Africa.”
He points out that the high cost of connectivity remains a problem for many South African citizens, and has committed the department to finding new ways of reducing these costs.
“We acknowledge the efforts of industry in reducing prepaid mobile costs and the reduction in the mobile termination rates. However, our high cost to communicate remains an impediment to ICT uptake and usage by citizens, businesses and government. It contributes a substantial input costs which discourages investment.
“We therefore appeal to industry to continue on this path. government seeks to establish an environment in which the cost to communicate is affordable to all South Africans.”
Cwele points out that the department’s Cost to Communicate programme has four elements: “Firstly, the department and ICASA will conclude the broadband market value-chain study. The outcome of the study will be used to assist ICASA to develop regulations for broadband pricing.
“Secondly, in the course of this financial year, the Department will undertake a national roaming study to determine cost implications, including discriminatory behaviour particularly for new entrants and smaller operators.
“Thirdly, in September 2014, I will be directing ICASA to develop regulations on pricing transparency, to insist that companies transform their pricing structure to enable consumers to have a clear understanding of the true costs for the services they pay for. In this manner the true rate for a service will be disclosed upfront to enable the consumers to exercise their choice.
“Lastly, we intend to direct ICASA to develop regulations in respect of the premium content which to aims to regulate how different broadcasters will access premium content for their services. This premium content relates to content such as sport rights, films and other content previously accessed through exclusive terms.”
To achieve a sustainable and thriving sector, Cwele stresses that government needs to ensure there is a policy and regulatory environment that is conducive to the entrance and sustainability of new players in the market. “It is in our national interest to grow the sector and promote competition in order to drive down costs and create job opportunities.”
