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Cautious optimism over Nyanda


Johannesburg, 12 May 2009

Analysts have expressed a mixture of mild scepticism and positive sentiments to the appointment of Siphiwe Nyanda and Dina Pule as communications and deputy communications ministers, respectively.

Neither has been associated with the ICT industry in the past, but both are recognised for having had a fair amount of administrative and organisational experience. Furthermore, analysts say, the industry has embarked on a sea change that includes the de facto liberalisation, and it is now a very different place from five years ago.

Analysts also point out that, while Nyanda has had extensive organisational experience due to his military background, which may be of use in revamping the Department of Communications (DOC), neither he nor his deputy have any ICT skills base.

Fear factor

Will Hahn, analyst at international research firm Gartner, says: “I think what folks fear now in SA with a former military guy in charge is no longer that things won't get done, but that the wrong decisions will be made.”

He says there is a battery of important questions before the South African regulatory authorities (DOC, ICASA, the Department of Public Enterprises and others) that are crying out for clarification, and it could be that an emphasis on authority and clear lines of responsibility would be welcome.

“I cannot say definitely that it portends a sea-change, because I cannot gauge how much attention Mr Zuma pays to comms, how close he is with Mr Nyanda and whether the DOC is considered a reward or a second-rank appointment in this environment. Surely, no one could be unaware that this post would be highly visible and scrutinised, so I tend to take the more optimistic view,” Hahn says.

Hahn is looking for a statement of intent on important issues within three months, if the new minister is serious about taking action.

Minimal interference

Lindsey Mac Donald, analyst with international consulting firm Frost & Sullivan, says the appointments may represent a turnaround in government policy from the past, and having a minimal interference in the industry as such.

From an operational point of view, the appointment of a DOC director-general would be the most important next step for the new minister, she says.

Andre Wills, MD of Africa Analysis, says: “We need to have government's strategy on the use of ICT explained and this has never been done before. The development of this policy will depend a lot on the ideologies of those who determine it.”

He says the relationship between the minister and the regulator, the Independent Communications Authority of SA, will also be important, especially in securing the necessary resources such as funding for the organisation.

Positive approach

Richard Hurst, International Data Corporation analyst, says he has a sense that the local market will receive the appointments very positively. “However, I do think there is a lot to be done and that expectations will be running very high.”

“I think the most important thing is for industry to give both of them a chance,” says Papi Molotsane, Uninet executive chairman and former Telkom CEO. “They represent no baggage and so have a clean sheet. They are not associated with any particular grouping within the industry either.”

Molotsane says the new minister would be wise to meet as broad a cross-section of the industry as possible, and to break away from the tendency of his predecessor to mainly deal with the large firms.

Related story:
Nyanda, Pule take reigns at communications ministry

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