The South African government intends to implement a framework for regulators by December, with the Independent Communications Authority of SA (ICASA) to be used as an example as to why this is necessary, says trade and industry minister Mandisi Mpahlwa.
Speaking at the economic cluster of ministries briefing yesterday, Mpahlwa said the need for a framework for regulators of "network industries is crucial".
He said: "The work of economic regulators will be further enhanced by the competition policy review, of which a first draft has been finalised and amendments have been drafted for Cabinet consideration."
Mpahlwa said the implementation of the cluster's programme of action is on track and important progress is being made.
"The Cabinet lekgotla [conference] in three weeks will allow us an opportunity to address those areas that require strategic intervention going forward. These will be reported on after the lekgotla has been held," he said.
The economic cluster of ministries includes the Department of Communications, although no one from that department was present at the briefing. Other ministries include those of public enterprises, minerals and energy, and finance.
Mpahlwa said most government interventions are aimed at developing a more conducive environment to growth in the economy and need to be mostly of a "cross-cutting nature, with successful implementation supporting growth across the economy".
Jobs needed
While the South African economy has done well during the past five years, government has become increasingly aware that not enough jobs have been created as the country has an unemployment rate of about 28%. Mpahlwa said these interventions are needed to decrease that number.
Some of government's key interventions in the telecommunications sector have been to pressure Telkom to reduce its prices, especially for the call centre industry that has shown high job creation potential in the past four years. Western Cape call centre development agency Calling the Cape says the sector has created 25 000 jobs since 2003.
Mpahlwa noted government has continued to gradually implement reforms in the South African telecommunications sector to address pricing and access issues.
"Policy directives have been announced to start the local loop unbundling process. The directives are an important step in enabling increased competition and thereby cheaper broadband. The directives will be supported by new regulations to be developed by ICASA."
Mpahlwa said successful implementation of these directives would boost the growth of SA's service and knowledge-based industries.
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