Telecommunications is among the sectors government has targeted for an anti-competitive behaviour clampdown, trade and industry minister Mandisi Mpahlwa said yesterday.
At a parliamentary press briefing, on behalf of the economic cluster of ministries that includes trade and industry, communications and public enterprises, Mpahlwa said the other sectors under such scrutiny include banking and steel.
"Despite the improving level of competitiveness and the robustness of the competition authorities, there remain high levels of concentrations in specific sectors of the economy. Anti-competitive practices continue to characterise the structure of key markets and the conduct of market participants. This requires that the state of competition be constantly monitored."
He said the Department of Trade and Industry had completed a review of competition policy, in consultation with other economic cluster departments. Proposals will be forwarded to Cabinet based on these discussions.
Mpahlwa used the example of the fact that both the Independent Communications Authority of SA and the Competition Commission investigate competition issues.
He said the recommendations would not be "earth-shattering". The objective was also to improve the recommendations between the policy-makers and the regulators to improve economic performance, he noted.
Licensing route
Portia Molefe, director-general of the Department of Public Enterprises, said at the same briefing that government's drive to license broadband infrastructure supplier Infraco was not part of the reason for the examination of competition issues and the regulatory regime.
"We have gone this route with Infraco to ensure it is properly licensed and will enhance competition in the telecommunications sector and stimulate uptake of broadband," she said.
Before the briefing, the Parliamentary Portfolio Committee on Public Enterprises requested the Portfolio Committee on Communications send a letter to president Thabo Mbeki asking that steps be put in place to amend the Electronic Communications Act to speed up the licensing of Infraco.
BPO strategy in place
Mpahlwa also stated the business process outsourcing and off-shoring strategy led by his department was going ahead, with the assistance of the Department of Communications.
He said three applications for assistance in setting up call centres, in previously disadvantaged areas, had been approved with a total value of R136.5 million.
Also touched on in the briefing was the action plans being prepared for Centres of Competence in three areas: information security, titanium metal production and natural fibre composites.
"This is part of government's strategy to increase total expenditure on research and development to 1% of GDP by 2008. In addition, a business case and government consultations have been completed on the Draft Bill for the Space Agency," Mpahlwa said.
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