It seems our government has adopted the same paternalistic approach to the liberalisation of the telecoms industry as the regime in the 60s and 70s did in its approach to introducing television.
As the Nat government of the days of yore felt we were unable to handle the impact of TV, it appears our current leaders do not think we can handle fast, easy access to information enabled by broadband Internet connectivity.
Instead of true or meaningful liberalisation, the government has opted for what it terms "managed liberalisation". Call it what you like, the policy means SA is being left behind as the rest of Africa accelerates access to broadband Internet using WiMax technology.
WiMax wildfire
Analysts have estimated that the number of WiMax pilots, as well as licensed and unlicensed projects across the continent, is in excess of 50 operations, and growing daily. Even Telkom has acknowledged in recent weeks that WiMax technology will help bridge the digital divide by enabling cost-effective, accessible ICT to rural areas.
Instead of being among the leading African countries rolling out WiMax, we are now lagging Nigeria, Uganda, Mozambique, Kenya and Ghana.
Warwick Ashford
According to WiMax supporters, the technology is now mature enough to compete with digital subscriber lines (DSL) in terms of bandwidth, quality and price. WiMax is also a handy solution in Africa, where copper and fibre infrastructure is limited and a single base station can cover entire rural communities.
Consequently, private companies in countries like Kenya, Ghana and Mozambique are taking advantage of the relatively rapid and low-cost deployment of WiMax networks within a matter of days as well as the relatively more liberalised regulatory environments and self-installation of indoor units to meet market demands for broadband.
Usual suspects
In SA, however, entrepreneurs are being excluded. Only Telkom, Sentech and Neotel have been allocated reasonable chunks of WiMax frequency spectrum with the rest going to under service areas licensees (USALs). In other words, regulatory constraints continue to protect the interests of entrenched telecoms entities.
For the time being, at least, all other potential players have been excluded, particularly as those who have been allocated spectrum are under no obligation to use it. The lack of competition also means none is in any particular hurry.
Telkom has indicated that it will introduce WiMax services only next year, even though it will help the company cut down on the lengthy waiting period for broadband services. Meanwhile, none of the other WiMax spectrum recipients have made any similar announcements.
In fact, indications are that Neotel may not use its WiMax allocation any time soon, if at all for Internet broadband. USALs are also considered to be unlikely to offer WiMax in the near future.
According to Arnoud De Nooy, CEO of Rapid Cloud Technology, USALs lack the drive and enthusiasm of Kenyan and Ghanaian entrepreneurs, who are driven by the business opportunities of WiMax. He says there is no compelling business case for USALs.
Analysts say because the Independent Communication Authority (ICASA) has not adopted a use it or lose it approach, those who have been allocated the WiMax spectrum are free to use delay tactics to block any new entrants into the market.
Non sequitur
The government is continually calling for private sector involvement in national development projects, but in many instances has failed so far to create a legislative environment to promote such a role.
Why hasn`t the government done everything in its power to ensure SA is among the leaders in rolling out a technology that is apparently so well suited to local conditions and market demands?
Sadly, maintaining the status quo that protects the interests of the few over the many, is the most likely reason behind this policy of "managed" liberalisation.
Of course, this new policy means that although the new Electronic Communications (EC) Act is aimed at increasing competition, no new players will be able to enter the market. Instead of opening the door to opportunity, it seems the EC Act will change very little.
Weighing the cost
Naturally, Telkom CEO Papi Molotsane has defended the policy of "managed" liberalisation. He says SA needs a strongly regulated environment to avoid rushing into anything prematurely and risk losing out on the opportunity of becoming part of the global economy.
One can only wonder whether he`s considered the risk associated with being left behind by the rest of Africa?
Surely the time has come to get real about what`s happening elsewhere in Africa and finally end protectionism for the benefit of the country as a whole?
Instead of being among the leading African countries rolling out WiMax, we are now not only lagging Nigeria, Uganda and neighbouring Mozambique, but also Kenya and Ghana.
Whichever way one looks at it, it really doesn`t make sense.
Maybe it`s time to organise a protest march, which seems to be the recognised last resort when common sense has failed to prevail among the powers that be.
Toyi-toyi, anyone?
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