The longer SA takes to implement clear ICT policies, the more dominant telecoms operators will continue to benefit as market competition is being stifled.
This is according to Ewan Sutherland, visiting adjunct professor at the University of the Witwatersrand's Link Centre, which hosted a seminar this week titled "Towards a National ICT Policy".
Communications minister Yunus Carrim released the national integrated ICT policy green paper for public comment last month and this formed the focal point of Sutherland's seminar.
He started by unpacking what he sees as the paper's progressive elements. "The green paper is good in admitting that SA has lost its place as the continental leader in ICT."
However, Sutherland noted the government's slow action on facilitating a competitive telecoms sector does not bode well for investors who would like to operate in the country. "There has been a distinct lack of competition, and if the mobile prices are high, the cost to operate in the country deters potential investment," he said.
Mark Walker, director of insights and vertical industries at the International Data Corporation for Middle East, Turkey and Africa, agrees with Sutherland and outlines how dominant operators call the shots in the market. "They can decide on who uses the telecoms infrastructure, how it is deployed and how it is priced. Essentially, they can make the market according to their will," he says.
Walker adds SA's lack of a more stringent regulatory environment "supports that lack of competition".
But Walker also noted ensuring a competitive market will not solve challenges to implementing ICT policies which benefit all South African citizens. "Whenever a market is opened up, you see developments in innovations and products, but there are usually no improvements in rural, under-serviced areas as it is commercially unattractive."
Walker says highly competitive markets could lead to infrastructure developments in areas where the highest profit margin exists and other areas will be left behind.
Falling behind
The green paper cites a World Economic Forum study, which measures a country's propensity to exploit ICT opportunities, and SA's ranking of 70 out of 144 countries means it trails behind comparator nations like Chile, Turkey and Poland.
While the paper acknowledges the amount of work SA still needs to do to re-establish itself as a leader in ICT policy, Sutherland noted the Brazil, Russia, India, China and SA (BRICS) body of emerging markets is close to being eclipsed by another comparative collection of nations.
"People are now talking of MINT countries - or Mexico, Indonesia, Nigeria and Turkey. Countries are lobbying for positions in a global competitiveness list."
Sutherland noted the BRICS nations need comprehensive ICT policies in order to boost competitiveness in a global market.
ICASA as scapegoat
Sutherland said network operators and politicians point fingers at the Independent Communications Authority of SA (ICASA) in an attempt to deflect blame for slow ICT policy development.
"We have two views of ICASA: according to the African National Congress (ANC), it is a creature of the operators; and according to the operators, it is creature of the ANC," he said.
"It doesn't get over the problem that you shouldn't be blaming the organisation if the system is the problem. This creates delays as forming a policy means recruiting staff and studying the market."
But not all industry commentators agree that incumbent operators benefit from delays in policy development.
Spiwe Chireka, senior telecoms analyst at IDC, says delays also affect operators negatively "because a clear ICT policy would give us a clearer indication of ICASA's role in the market, local loop unbundling (LLU) and the long-awaited spectrum allocation process".
She notes missed deadlines for LLU have done little to boost market competition, while established operators can only benefit from policy directives.
Chireka says a comprehensive understanding of market dynamics is required, as opposed to a focus on figures. "I would hope the [Department of Communications] takes the time to understand beyond the figures of why people are adopting telecoms. If not, then we're looking at a policy that could potentially fail."
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