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How will SA lower broadband cost?

Admire Moyo
By Admire Moyo, ITWeb's news editor.
Johannesburg, 08 Oct 2010

SA lacks a clear indication on how broadband affordability will be achieved, as the country's broadband policy and regulatory framework does not mention the single most important factor in lowering the cost of broadband.

This is according to Kathleen Rice, an attorney from Cliffe Dekker Hofmeyr, speaking during this week's ITWeb Broadband Conference, at The Forum, in Bryanston.

She said the overarching objective of SA's broadband policy, as promulgated on 13 July 2010, is to “facilitate the provisioning of affordable, accessible universal access to broadband infrastructure to citizens, business and the three spheres of government, as well as to stimulate the usage of broadband services in order to promote economic development and growth”.

Rice noted that in order for SA to be able to roll out broadband for all, the regulatory framework should not take the lowering of cost for granted, as it is one of the reasons keeping broadband penetration as low as 3%.

She said besides creating universal access and affordability for broadband, the policy framework also stipulates that government should intervene in creating an environment for broadband growth in areas that are not economically viable.

“Broadband affordability and accessibility has the advantages of economic development and growth, especially for SMEs and cooperatives; increased employment; reduced costs of communications; improving marketability; while also encouraging investment,” said Rice.

Improved quality of education and government services are among the social benefits the country will gain from affordable broadband.

Rice also argued that SA's regulatory framework does not give any comment as to how government intends to stimulate the demand for broadband, and how it also intends to deal with lack of access to computers as well as low computer literacy levels.

Following blindly

According to Rice, the Independent Communications Authority of SA (ICASA) was created under the ICASA Act as an independent body subject only to the constitution and the law. “In terms of legislation, the authority is required to perform its functions without fear, favour and without political nor commercial fear.”

However, Rice pointed out that there is no specific direction given to ICASA on the types of regulations that it should consider prescribing. “For example, there is no clarity on aspects like cost-based framework regulations, interconnections and facilities leasing declaration of essential facilities as well as local loop unbundling.”

Rice said the regulatory body is expected to deliver essential aspects like implementing a cost-based pricing for interconnection and facilities for leasing and sharing. “It is ICASA's mandate to license broadband spectrum on a technologically-neutral basis.

“On top of providing greater clarity on broadband policy, ICASA should be a strong regulator that is, indeed, independent and free from interference. Therefore, it must consider, but not follow blindly, ministerial policy.”

White elephant?

She also said since its creation, one of the principal role-players in the broadband regulatory framework, the Universal Service and Access Agency of SA, had not done much to carry out its mandate, mainly because the agency has not been given clear direction of its functions.

World Wide Worx MD Arthur Goldstuck says SA should also incorporate broadband strategy into national budgetary priorities.

“Neither ICT nor communications technologies, neither the Internet nor broadband, were even mentioned in the 2010 budget speech of the minister of finance. This is where the rubber hits the road to broadband, and in its absence, we receive only lofty ideals instead of practical action,” notes Goldstuck.

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