R850m in Universal Service Access Fund

By Paul Vecchiatto, ITWeb Cape Town correspondent

Cape Town, 27 Mar 2008

There is about R850 million sitting unused in the Universal Service Access Fund, Parliament has heard.

Telecommunications operators finance the Universal Service Access Fund as part of their licence contributions.

Speaking before the Parliamentary Portfolio Committee on Communications, James Theledi, CEO of the Universal Service and Access Agency of SA (USAASA), said that, as far as he understood, that money had been ring-fenced by National Treasury and should still be available once it is needed.

Theledi discussed USAASA's past, present and future with MPs, who previously levelled strong criticism of the organisation. Last week, these MPs seemed only slightly mollified with the restructuring of the agency.

"I have a difficulty in understanding your core business. I don't see a strategy, I see a statement," communications committee chairman Ismail Vadi (ANC) commented.

The turnaround strategy that USAASA presented includes the support of government's "Business Unusual" theme; the move from being an implementer to one of being a facilitator, adviser and mentor; an emphasis on cooperation through partnerships; and the support of Department of Communications (DOC) and Independent Communications Authority of SA (ICASA) processes.

The agency also proposed that a "reverse auction" process be used to stimulate investment in under-serviced areas. This would see operators bidding to be granted a subsidy to provide connectivity.

Theledi also stated his agency would draw up proper procedures so that the monies in the Universal Service Access Fund could be accessed. These would be done in consultation with the DOC and National Treasury.

Under fire

MPs questioned the role of USAASA and whether the under-serviced area licensees (USALs) still have a business case.

Theledi responded that part of USAASA's problem was that its mandate was broad and the future of the USALs lies in the hands of regulator, ICASA.

Earlier this month communications minister Ivy Matsepe-Casaburri stated before this committee that she would make further policy directives concerning USALs in her budget speech scheduled for 13 May.

The mixed reaction by MPs to USAASA's strategy was further illustrated by some saying the presentation and turnaround plan was a vast improvement on the past; that the agency could play a role in ensuring schools' connectivity bills were paid by it; and the questioning of its relationship with the DOC.

When closely questioned by Vadi, Theledi answered that the DOC's senior management signed off the strategy and presentation.

Vadi responded by saying: "You are accountable to us [the communications committee] and not the DOC or the minister."