The South African government`s telecoms legislation effectively goes against official parliamentary policy, since it hinders attempts to bring affordable telecoms to the masses, says the International Telecommunications Users Group (INTUG).
"One of the easiest ways to bring telecoms to a broad base of people is through IP telephony, but SA has strict laws surrounding voice over IP (VOIP), so legislation is denying the people an opportunity to gain access to communications," says Ewan Sutherland, executive director of INTUG.
Sutherland recently visited SA under the auspices of INTUG`s local affiliate, the Communications Users Association of SA.
"Governments all around the world are looking at the benefits of VOIP, but in SA the legislation is just not practical, since VOIP is not something that can be easily regulated. However, the other side of the coin is that legalising it will help to reduce telecoms prices," says Sutherland.
"The only obvious reason for the current regulation of VOIP is as a means of protecting Telkom, but with Telkom`s profits the way they are, I really don`t think they need any protection from government."
He says effective delivery of broadband is something that could go a long way towards assisting the government`s social and economic policies.
"In SA we have about 20 000 broadband lines available at present, whereas a country like China is adding about one million new broadband lines every month," he says.
"Already there are numerous African nations that have effective broadband - nations such as Egypt, Morocco, Algeria and Tunisia - so this country is already falling behind the rest of the continent in this regard."
Competition needed
Sutherland says he is fascinated by what he calls a uniquely South African approach to the issue of Telkom, which is officially no longer a monopoly, but is nonetheless an organisation that has no competition.
"SA desperately needs infrastructure and service-based competition, otherwise it will really fall behind the rest of the world. Today there are nations that you would not have expected to see de-monopolisation taking place in - such as the Gulf States - that are already gaining ground on this country."
The only obvious reason for the current regulation of VOIP is as a means of protecting Telkom, but with Telkom`s profits the way they are, I really don`t think they need any protection from government.
Ewan Sutherland, executive director, INTUG
Sutherland Asked does not believe the proposed Convergence Bill will make much difference. "What SA requires is a competitive environment, not another shiny new piece of legislation.
"SA does need flexibility in the legislation, however, since the platforms need to be in place before services can be offered on them, so the legislation must be flexible enough to be able to adapt once these services start being rolled out," he says.
"It is extremely unfortunate that there is no second national operator (SNO) to provide competition as of yet, and even more unfortunate that there appears to be no solution in sight, as this lack of competition is damaging the local economy and affecting the development of services.
"Internationally I think telecoms players have lost interest in SA`s SNO process, as there is a limit to people`s interest in soap operas. They are more likely to be looking to other developing markets, such as those to be found in Asia."
Time is of the essence
Sutherland believes it is imperative that the minister finds some way of getting the SNO up and running as soon as possible.
"At this point, I do not think the players can be forced or coerced anymore. I just cannot see a jolly consensus happening anytime soon, even if one of the partners is ejected from the SNO, following the legal challenges that are under way.
"I feel the best solution to the problem would be to give every percentage holder in the SNO a licence and let them all fight it out in a competitive marketplace."
The best solution [...] would be to give every percentage holder in the SNO a licence and let them all fight it out in a competitive marketplace.
Ewan Sutherland, executive director, INTUG
He says this method would mean government had fulfilled its obligations to provide a licence (or licences, in this case) to the players, and the rest would then be up to the individual organisations.
"SA cannot afford to wait for the players to reach agreement, and this is the only option I can see that will cut the Gordian knot that currently exists in the SNO," he says.
In conclusion, Sutherland says that if SA hopes to regain its place as Africa`s technology leader, there will have to be a number of changes in the industry and its existing legislation.
"We will need to see more mobile and fixed players entering the market, as well as concerted broadband roll-out, the legalisation of VOIP services and also the international telecoms links must be opened up.
"Lastly, SA requires a strong resolve from government to take away the protection that Telkom has had for far too long already."
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