Telecommunications operators have paid hundreds-of-millions of rands into the Universal Services Fund (USF), but little has come back into the industry.
This is according to Cassandra Gabriel, chairman and acting CEO of the Universal Services Access Agency of SA (USAASA).
Presenting to the Parliamentary Portfolio Committee on Communications this morning, Gabriel did not provide definite figures on the amount of money already collected.
However, she estimated R140 million, which is 0.02% of the telecoms operators' annual revenue that was paid out since the USF came into being, had been paid to the National Treasury.
"If the regulator [the Independent Communications Authority of SA, ICASA] increases this to 1%, as they can in terms of the Electronic Communications (EC) Act, then this number could increase to R350 million annually."
She said USAASA and the Department of Communications, and possibly ICASA, would have to work together to convince the National Treasury to unlock more of these funds to be used in the telecoms sector.
Telecoms operators have previously complained that if the money is not used for its intended purpose, then it is another form of taxation.
Tarnished reputation
Gabriel said USAASA was working hard to overcome the poor reputation of its predecessor, the Universal Services Agency (USA).
"The USA did not have a shining reputation for getting things done. Before you honourable members tell us that we are useless, we know that. But we are trying hard to change things, and to convince you that we are changing for the better."
In terms of USAASA's strategic plan, the agency is considering the role and sustainability of the underserviced area licensees (USALs) and the continuing roll-out of telecentres. It is also examining the school e-rate and hopes to find a way that the poorest in the schools would pay next to nothing for their connectivity.
USAASA also plans to build its own internal capacity by recruiting project managers, fund managers and other financial experts, she noted. The agency aims to expand its research capacity and create a single nodal point for research so that it can plan future projects more efficiently.
Redefining USALs
Dene Smuts, of the Democratic Alliance, says she is pleasantly surprised by USAASA's presentation and she did not realise how much revision had been done by the organisation.
Randy Pieterse, of the African National Congress, says he understands the problems with the roll-out of USALs. It was supposed to create last mile connectivity in those areas where the major telecoms operators found it unprofitable, he notes.
Gabriel responded that the definition of USALs was based on a dated definition: mainly it would be used for fixed-line connectivity. However, technology had overtaken that definition and a new one would have to be developed.
Committee chairman Godfrey Oliphant says a date would be set for when the committee, USAASA, the communications department and ICASA could engage on a USALs report compiled by Lisa Thornton and Associates.
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