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Riven ICT sector breeds confusion

Bonnie Tubbs
By Bonnie Tubbs, ITWeb telecoms editor.
Johannesburg, 26 May 2014
President Jacob Zuma's decision to split ICT ministries has left a feeling of disheartenment and confusion in its wake.
President Jacob Zuma's decision to split ICT ministries has left a feeling of disheartenment and confusion in its wake.

While the industry is still awaiting clarity around what exactly SA's now dissected and reshuffled ICT sector means for the country, industry professionals are generally discouraged by president Jacob Zuma's latest move.

Early-day reactions include words and phrases like "worrying", "not good news", "strategic mistake", "confusing", "mystery", "incredibly disheartening" and "nonsensical".

In speaking to some of the ICT industry's top minds on Zuma's decision to split ICT ministries and create a brand new telecoms and postal department - to be headed by controversial state security man Siyabonga Cwele - a number of serious concerns were raised.

The telecommunications industry was tagged as a R180 billion industry for SA as far back as 2012, and it is a well-known fact that the country has been progressing exponentially since - attracting interest from across the globe.

Overriding unease

Some of the key concerns raised over the past 18-odd hours include the role and muscle of the Independent Communications Authority of SA (ICASA); further fragmentation of existing uncoordinated policies; the "dumping" of a competent and fiery communications minister; time needed for new ministers and deputies to get up to speed with new portfolios; the potential of bureaucratic and policy tensions to delay and exacerbate the country's crisis around rapid delivery of telecoms services; and the implications on future investment.

Independent telecoms researcher Samantha Perry says, while it is too early to say what the formation of the new ministry will mean for the local sector, the fact that ICASA has been taken out of the old communications and put into the new communications - which is expected to handle branding and messaging - is worrying. "ICASA is not meant to handle how SA is perceived; it's an independent industry regulator and its new location is concerning."

Africa analyst Koffi Kouakou says the establishment of a new ministry sends the wrong signal against the idea of a consolidated and more coordinated strategy for the competitiveness of the country's telecoms industry. Among these, he says, it will increase the implementation silo gaps with the old ministry of communications, and it will take time for the new ministry to get up to speed about its own operations and the delivery on its mandate.

Baffling break

Dominic Cull, owner of Ellipsis Regulatory Solutions, says he finds the development "incredibly weird" and is disheartened that, just as the industry appeared to be making progress, a spanner like this gets thrown in the works. "This appears to show a desire on the part of government to have greater control over the SABC and content in general, while its lack of understanding of the technical issues surrounding the industry is evident."

Ovum analyst Richard Hurst says the split does not make sense right now - and comes at a time when SA is facing some critical tasks in terms of sector development. "The split could increase the delays that we have already seen in the allocation of spectrum and the rollout of 4G and an increased penetration of wireless broadband in the country."

Twitter reflects South Africans' apprehension:

Jannie Momberg (?@JannieMom) says: "The biggest proponent of the Info Bill, Siyabonga Cwele, is now in charge of telecommunications."
Marian Shinn (Democratic Alliance shadow minister of telecoms, @ShinnMarian) tweeted: "#ZumaCabinet ? Telecommunications Siyabonga Cwele, Police Nkosinathi Nhleko. SG". A moment's silence please for telecoms." (sic)
Sisonke Msimang ?@Sisonkemsimang
Hmmn, Siyabonga Cwele moves from Intelligence to telecoms...to check if the wire taps worked?
Fighter Nkadimeng ?@SegopotjeNkadi1
Zuma would retain #SiyabongaCwele n #NathiMthethwa,he wants to have firm control over security cluster to avoid being prosecuted
nompumelelo Langane ?@mpumieGG
zuma be creating new ministries to accommodate his friends..and shuffling people in very different ministries? it beats me #newcabinet
Raymond ManthosiTM ?@Manthosi_R
It's okay to be a fisher today & an engineer tomorrow. This now brings a concern as to how the reshuffled ministers will adapt. #ZumaCabinet

Marian Shinn, shadow minister of communications for the Democratic Alliance, calls Zuma's latest move "absolutely daft". She says the communications ministry should have ICASA, policy and strategy, and communications infrastructure components. "It makes no sense to place communication policy, strategy and regulation in the same department as government's media, marketing and publicity operations. This indicates to me a clear confusion in the ANC as to the different needs of the activities that fall into the amorphous world of 'communications'."

Mark Walker, director of insights and vertical industries for IDC Middle East, Africa and Turkey, says Zuma's move makes sense from a telecoms versus postal split, as business models are different. "[This] frees up the telco/tech sector from the traditional links to postal so they can hopefully plan and move better. The DOC now seems focused more on the media meaning of communications than with the technology aspects."

Walker says the industry can only hope the move will advance the sector and see Carrim's legacy continuing.

ICT veteran Adrian Schofield says he found the move puzzling. "The 'new' Department of Telecommunications and Postal Services (DTPS) is a reversion to the pre-digital era and seems to deliberately separate broadcasting (content) from service provision. What is (and will be) confusing is that DTPS is mostly what the old DOC was and the new DOC is mostly concerned with controlling how and what South Africans see and hear (the 'Propaganda Ministry')."

He says SA's ICT sector will now have a much tougher job getting the message to government about the critical role of ICTs in the country's future. "The new structures appear to prevent any holistic approach to the use of converged technologies in building a better society and a stronger economy."

At this stage, say industry observers, SA's ICT industry is left with far more questions than answers - a scenario they hope will be cleared up for the sake of the country's economic and social upliftment.

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