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Prioritising Yunus Carrim's inbox

Digital television, spectrum and the national broadband plan are the key aspects the new communications minister needs to tackle.

Johannesburg, 11 Jul 2013
Industry has urged new communications minister Yunus Carrim to focus on delivery and get on with the job.
Industry has urged new communications minister Yunus Carrim to focus on delivery and get on with the job.

As Yunus Carrim arrives at his desk as the newly-appointed minister of communications, he will be tasked with righting the public broadcaster, stabilising the Department of Communications, and dealing with a host of projects left hanging during former minister Dina Pule's tenure.

While Carrim has yet to publicly announce his top priorities, analysts say that top of his agenda would be to sort out the South African Broadcasting Corporation (SABC), get spectrum allocation off the ground, as well as launch the much-awaited digital television.

Many of these issues hang over from Pule's 21-month stint as minister and several have been dragging on for many years, with minimal progress made. Carrim is SA's eighth communications minister since 1994.

Pule's two budget speeches during her tenure focused on the key areas of ICT policy, broadband policy and the implementation of digital television migration.

Just do it

Democratic Alliance shadow communications minister Marian Shinn hopes the new minister will "make informed decisions promptly and not be afraid to be assertive" in his approach to the department.

IDC analyst Spiwe Chireka hopes Carrim's plan of action, expected to be unveiled in two weeks, is delivery-focused. "He's got quite a bit of things waiting for him... there are a lot of work-in-progress things that need to be wrapped up." Pule's downfall was not ticking things off the to-do list, she adds.

Chireka notes Pule left behind many priorities that were a work in progress, and digital television is at the top of the list of issues that must be sorted out as it is becoming more important.

Operators are looking at the digital dividend - the space in 800MHz that will be freed up when SA moves off analogue television - and this requires immediate attention, says Chireka.

Ovum analyst Richard Hurst says the most pressing issue is digital television migration, which is directly linked to spectrum. He points out that the process is lagging behind other African countries. "It's almost: two birds - one stone."

SA decided in 2006 to migrate to digital television, but the much-anticipated switch-on, set for the end of last year, was delayed because of a court wrangle over conditional access. Switch-on has now been set for the second half of this year, but industry is sceptical.

BMI-TechKnowledge MD Denis Smit notes that some spectrum - such as in 2.6GHz - can be released now, which would make a big difference. Operators want frequency in the coveted 2.6GHz range so they can roll-out long-term evolution in built-up areas, while 800MHz is seen as ideal for rural areas.

Waiting game

The new communications minister must not be afraid to be assertive, says Democratic Alliance shadow minister Marian Shinn.
The new communications minister must not be afraid to be assertive, says Democratic Alliance shadow minister Marian Shinn.

The government announced an aim of giving every citizen access to broadband by 2020. The National Broadband Policy, which was opened up for public comment in April this year, still needs clear directives in how it will be implemented, industry has said.

In May, Pule also said the New Broadband Policy would go to Cabinet in June, allowing the Independent Communications Authority of SA (ICASA) to license the "much sought-after 2.6GHz and 800MHz spectrum, including the extended digital dividend". However, dates as to when this spectrum will be released are yet to be announced.

Shinn points to the broadband policy part of Carrim's overflowing in-tray as vital to SA's progress. "The lack of this policy has been a serious hindrance to development," she says.

Carrim must make informed decisions promptly and not be afraid to be assertive, says Democratic Alliance shadow communications minister Marian Shinn.

One of the policy's objectives is to "articulate government's commitment to providing appropriate support for digital inclusion, thus building an information society".

Chireka says the policy must be wrapped up so that spectrum can be released, and SA has been awaiting further allocations since 2009. She notes there are policies that need to be finalised.

The cost of communication must come down and Pule has hinted at a possible state intervention, says Chireka, but notes that prices cannot drop until spectrum is allocated, paving the way for more traffic.

Clarity needed

Smit says providing clarity on government's stake in Telkom, releasing spectrum and stabilising the department are Carrim's key priorities. The state has indicated Telkom will play a key role in its plan to connect all South Africans to a broadband network; however, the sector is still waiting for clarity as to how the plan will fit together.

Government, which owns almost 40% of Telkom, has been cited as a thorn in its progress. After the proposed R3.3 billion investment - for 20% of Telkom's stock - was binned last year, Pule was tasked with coming up with a turnaround plan within three months.

Something needs to be done to unlock the stagnant status quo we have at the DOC, says Ovum analyst Richard Hurst.

Subsequently, Pule indicated she was waiting for the board to provide its views. Recently-appointed CEO Sipho Maseko has said it is defining its mid- to long-term strategy and plan, as well as determining how to manage its wholesale and retail structural options.

Maseko said the strategy will be unveiled as it is developed, and will be presented to all stakeholders, along with options and the reasons for its chosen strategy. He has said Telkom is working hard to rebuild government's trust in the company.

Hurst says Telkom and its role in the national broadband plan must be clarified.

Missed deadlines

The Department of Communications is a key portfolio, says Ovum analyst Richard Hurst.
The Department of Communications is a key portfolio, says Ovum analyst Richard Hurst.

]Another aspect that has not yet been sorted out is local loop unbundling. The DOC had set a November 2012 deadline for the second phase, bit-stream access, which followed lower IP Connect rates, but this was not met as the issue over Telkom's access-line deficit has yet to be resolved.

Telkom has argued it essentially subsidises the copper lines, and cannot on-sell access unless there is a mechanism in place to recoup this deficit.

Local loop unbundling comes down to discussions with Telkom and is a subset of a much bigger discussion, notes Smit. He says key strategic issues that must be dealt with include Telkom's role in the national broadband plan.

The problem is that deadlines are set, but not met, such as the case with local loop unbundling, Chireka says. She adds that while there is much to be done behind the scenes, this is not the citizens' problems, and the question is when this will happen.

Political imperative

Smit says Carrim has indicated he will focus on stabilising the SABC, and then turn his attention to the department. Smit notes the public broadcaster will be key in the upcoming elections, which will be held next year.

Zuma approved an interim board recommended by Parliament in April, shortly after its previous board was dissolved. The top-level shuffling held up digital migration as the broadcaster could not sign off on a supplier for conditional access, which scrambles the signal and is meant to protect the local industry and stop decoders being stolen and sold outside of SA.

Smit adds the ICT policy needs to be supported and matured, and taken to green paper and white paper stage. In April 2012, Pule took the first steps towards an ICT policy review, and has since set up a committee that is dealing with the issue.

Shinn notes the issue of ICT policy is vital and Carrim should act swiftly. "We were supposed to have a first draft at end of the year," she says. "There are some good people on that body and, as far as I know they're still moving ahead and hopefully he'll encourage them to proceed with vigour."

Hurst says generally, more transparency around what is happening at the department is required. "Something needs to be done to unlock the stagnant status quo we have at the DOC... It's a key portfolio."

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