Convergence Bill to encourage choice, competition

The Convergence Bill will provide greater opportunities for competition and ensure more choice for consumers, said Lyndall Shope-Mafole, director-general of the Department of Communications.

Shope-Mafole was speaking to ITWeb following Friday`s deliberations by the Parliamentary Portfolio Committee on Communications over the Convergence Bill. The Bill has been substantially reworked from its original draft.

The committee is in the final stages of approving the Bill, after hearing 27 presentations and receiving 44 submissions from government, parastatals, business and civil society organisations, she said. Once approved, the legislature will vote on it.

"We have to speed up the process, while accommodating everyone`s requirements," said Shope-Mafole. The Bill has been firmed up on issues which will expedite the adoption of broadband, particularly in new residential estates, where developers will find catering for this easier, she said.

The Bill is flexible, to provide for strengthened competition and particularly, choice for consumers, said Shope-Mafole.

The Independent Communications Authority of SA (ICASA) is required to implement regulations for most of the Bill, she said. These regulations must take into account the country`s current environment, which would "create an environment for innovation, growth, policy-making and regulation. It also allows for checks and balances to be in place," she said.

Shope-Mafole hopes the Convergence Bill will have grey areas. "This Bill will help spur people on a bit. While it should give more clarity on the space where companies must operate, it will also stimulate them to innovate and that is necessary for the development of the country."

She said Cabinet is aware of the need for a strong regulator to control the sector. "Cabinet has already decided that the regulator needs to be strengthened and hopefully Treasury will agree to the necessary funding," she said.

The long-waited ICASA Amendment Bill, which governs the funding and behaviour of the regulator, should be ready by 16 September. This means it will be too late for the current parliamentary session.

Answering industry allegations that the Convergence Bill will force companies to substantially change their business models, Shope-Mafole said: "We will all have to do a bit of work. It will not be business as usual and we have to become globally competitive and why not be number one?"

While the Bill will stimulate competition, Shope-Mafole believes there are a number of other factors that will impact on the reduction of costs, particularly the owning of infrastructure.

A Cabinet decision, that the public sector should invest more in infrastructure, will enable competition to come into play, she said, adding that a more informed public will empower it in exercising choice.

According to Shope-Mafole, the second national operator should be licensed soon. "ICASA is in the process of finalising the details of the licence conditions and it is a high priority for them."

The Department of Communications is mooting a name change that will include information and technology, although no firm decision has been taken, said Shope-Mafole.