Rural communities still out of touch

By Christelle du Toit for USAASA
Johannesburg, 04 Oct 2007

Despite the establishment of a multimillion-rand universal services and access fund (USAF), under-serviced communities continue to lack access to communication services.

Universal Service and Access Agency of SA (USAASA) chairman Cassandra Gabriel attributes the lack of service delivery to the fact that the agency was unable to effectively access the hundreds of millions of rands raised through annual contributions by telecommunications operators. In the previous financial year, the USAF collected R151 million, she adds.

"We did not engage properly with National Treasury so it understands what we do, and, as a result, they confused USAASA's budget with the fund budget."

Additionally, USAASA had a turbulent year, lacking consistent leadership to drive the organisation's performance. Last year, USAASA had a change in chairmanship, two acting CEOs, two permanent CEOs and a mass exodus of senior management.

This was mainly due to the fact that the Telecommunications Act of 1996 only provided for the existence of the organisation for 10 years, and the period had expired. "Senior staff left because there was no guarantee that the agency would continue to exist," says Gabriel.

Scaled-down

Gabriel says USAASA was only allocated small amounts, which increased by less than 10% each year since the fund was formed. USAASA received R31 million out of the R151 million raised in the 2006/7 financial year, she notes.

National Treasury did not understand that, while universal service funds should be channelled through the Department of Communications for the purpose of accountability, they should be made available to USAASA whenever needed, she explains.

"I think now the department has managed to convince National Treasury so they understand how the money should be disbursed. We are now quite confident that we will be able to access the money in the fund."

Gabriel says management chaos resulted in scaled-down operations, which included a 54.7% drop in subsidies granted in the 2006/7 financial year.

However, USAASA has now beefed up its management team and acquired the skills it needs to effectively deliver universal services to citizens in 2007/8, she says.

Transparency needed

<B>2006/7 USAF allocations</B>

R2.807 million: Research on making telecoms affordable and accessible
R2.807 million: Telecoms licensees for financing expansion to under-serviced areas
R10.277 million: Connectivity to public schools and further education and training institutions
R12.347 million: Establishment of communication centres
R5.950 million: Assist small businesses and cooperatives to acquire communication infrastructure
R0.939 million: Overhead on expenditure that cannot be directly allocated to the programmes above, including project management, consultants and auditing services

Siyabonga Madyibi, Internet Solutions' legal and regulatory affairs manager, says the company is anxious about the fact that there are no transparent measures in place to indicate what happens to the money.

"There has to be sufficient controls in place to make sure the money is re-invested in the industry, especially the developmental elements."

Madyibi says IS will petition the Independent Communications Authority of SA (ICASA) to put measures in place to ensure accountability in the administration of the fund.

Meanwhile, ICASA has invited comment on draft regulations prescribing which institutions must contribute to the universal service fund under the Electronic Communications Act. ICT stakeholders and members of the public should submit written comment by 29 October, says ICASA spokesman Sekgoela Sekgoela.

The draft regulations provide for electronic communications service providers, electronic communications network service providers and broadcasters to contribute 0.2% of annual revenue from activities for which they are licensed. Payment is to be made by 1 July of each year, starting next year.