Johannesburg, 25 Oct 2004
In his State of the Nation address earlier this year, President Thabo Mbeki emphasised the need to lower the cost of doing business in South Africa. He also charged Communications Minister, Ivy Matsepe-Casaburri, with creating a globally competitive telecommunications sector.
Progressive companies, like Hymax Telecoms, have positioned themselves to take advantage of the far-reaching changes to the law that will come into effect on February 1, 2005 and will ultimately make the cost of telecommunications more affordable.
Neil Macdonald, executive director of Thynk Capital and chairman of Hymax Telecoms, was managing director at Symphony Telecom when the UK industry deregulated in 1998. The biggest impact deregulation will have in South Africa, he says, will be on the price of telecommunications services.
`In the short-term, deregulation will provide significantly cheaper calls for business and the choice of services and service providers will be much bigger than at present. However, this carries its own risks from the point of view of reliability of supplier, knowledge of the technologies needed and the ability to support and service the client`s telecoms needs. Clients need to ensure that they are dealing with reputable suppliers.`
Macdonald added that rolling out Voice Over Internet Protocol (VOIP) - illegal until February 1, 2005 - in an organisation can produce its own set of problems.
`More often than not the existing infrastructure will need to be upgraded for additional bandwidth to cater for voice traffic and to ensure quality of service on that traffic,` he says.
Another key feature of deregulation is the basket of telecoms offerings that clients will be able to get from key suppliers.
`Gone are the days where you will buy the PBX from one supplier, get the bandwidth from another supplier and then the routing facilities from a third supplier.
Clients will now be able to secure a total telecoms solution from one supplier giving them one interface and one monthly bill. Hymax has positioned itself to fulfill this role,` says Macdonald.
From February 1, 2005:
1. Cellphone companies will be able to use any fixed lines they need for provision of their services, from Telkom or any other company providing a public switched telecommunication service. Cellphone operators have been totally reliant on what Telkom charges them for provision of fixed lines which contributes to prevailing high costs.
2. Anyone can apply for a licence to provide payphone services. Government is also considering the removal of licensing requirements.
3. Value added network services (VANS) may carry voice using any protocol.
4. Value added network services may also be provided through operators other than Telkom and the SNO by means of telecommunications facilities.
5. Value added network services may also lease, cede or sublet any of their telecommunications facilities.
6.Private telecommunications operators will be allowed to resell spare capacity and facilities, or assign their rights to use such facilities, increasing access to communities and consumers.
7. Public schools and public further education training institutions will be entitled to a 50% discount on costs associated with the provision of Internet services.
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