The Internet Service Providers' Association (ISPA) has questioned the status of Broadband Infraco in ensuring all South Africans have access to affordable voice and data services.
In addition, at a recent meeting between the Gauteng Provincial Government, Department of Public Enterprises (DPE) and representatives from municipalities around the province, municipalities took the opportunity to say they want more presence from Broadband Infraco in the townships, according to DPE spokesperson Mayihlome Tshwete.
Broadband Infraco was established by government several years ago to provide a national telecoms backbone to telcos in SA. Its intention was to drop the cost of connecting to international undersea cables. However, the ailing entity has been rife with internal turmoil.
Part of Infraco's mandate is the expansion of the availability and affordability of access to electronic communications network services in both developed and under-serviced areas, according to ISPA's regulatory advisor, Dominic Cull.
Plan approval
ISPA questions the extent to which the company has managed to implement the roll-out plans set out in schedules one and two of its electronic communications network service licence.
In particular, Cull says the association wishes to know whether Infraco has filed an implementation plan with the regulator and whether this has been approved.
“This plan - a draft of which was supposed to be submitted to ICASA [Independent Communications Authority of SA] during June 2010 - is required to set out the manner in which the company intends to establish points of presence (POPs) in the 33 different under-serviced areas specified in its licence.”
Cull adds that the plan is required to set out the locations of all the POPs to be installed; the date of commencement of the roll-out of such POPs, which should have been no later than April 2011; and the detailed time periods over which such roll-out will be staggered.
ITWeb was unable to reach Broadband Infraco for comment by the time of publication.
Frequency delay
“ISPA is of the view that the establishment of the required POPs has the potential to revitalise efforts to bring affordable communications to all citizens, as ISPA members, among others, will be able to purchase bandwidth directly from these POPs in order to service surrounding members.
“Therefore, ISPA will gladly work closely with Broadband Infraco in order to ensure that the opportunities which it creates in these areas are effectively taken up.”
Another issue highlighted by Cull is the much-delayed release of available radio frequency spectrum in the 2.6 and 3.5GHz bands.
He says this frequency is critical to the introduction of affordable voice and broadband services in these areas, as providers utilise these frequencies to roll-out access networks.
“While all the talk is about what these licences will cost: we seem to be missing how much it is costing SA not to issue them.”
Access vs affordability
ISPA is eager to see more connectivity in under-serviced areas and highlights the importance of delivering educational services to rural and under-serviced areas using ICT.
The organisation's longstanding “Train the Teacher” programme has trained 2 238 educators in schools in under-serviced areas since its inception in 2001.
“Notwithstanding some progress over the last decade, ISPA is still finding that there is a huge need for affordable broadband services accessible from these schools.”
Cull says there remains a massive amount of work to be done. “We are moving from an access challenge to an affordability challenge. The role of the Universal Service and Access Agency of SA (USAASA) and the Universal Service Access Fund (USAF) in meeting this challenge remain critical.”
The advisor says bearing in mind the continued lack of affordable accessibility, it is disappointing that there does not appear to be any clear plan as to how these entities are meant to function.
He says the current status of USAASA and the disbursement of funds from the USAF is neither what it should be, nor what was expected.
“The government, regulator and key players such as Broadband Infraco need to work together quickly and effectively to create an enabling environment for the roll-out of services to as many under-serviced areas as possible, in as short a timeframe as possible.”
Cull says the availability of low-cost network services and bandwidth in these currently under-serviced areas has the potential to revolutionise the participation of marginalised communities in the mainstream economy, while securing the future of these communities through the delivery of educational and e-government services.
Privatisation
During his budget vote speech in June, public enterprises minister Malusi Gigaba said Broadband Infraco had helped to decrease wholesale long-distance connectivity prices by more than 75%, and will invest R500 million in broadband infrastructure in the 2011/12 financial year.
According to a National Treasury official, Broadband Infraco was expected to be self-funding from now.
“It is not only highly unlikely that Infraco will become self-funding, it is also highly probable that its losses will continue to mount, and its services become increasingly outmoded, as it struggles with management and operational issues,” argues WWW Strategy MD Steven Ambrose.
Gigaba said the department will continue to monitor the roll-out of the Infraco broadband network, while working on a strategy to secure the long-term viability of the business.
“In particular, we are exploring strategic synergies between Infraco and Sentech in order to optimise our capacity.”
Ambrose says the only viable future for the embattled SOE lies in its privatisation.
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