The telecommunications industry will not promote competition among itself, even if the market is fully liberalised.
This is according to communications minister Siphiwe Nyanda, speaking to ITWeb yesterday on government's policy of managed liberalisation in the telecoms market. According to Nyanda, while government wants to promote competition, “rampant liberalisation” is not the answer.
Nyanda pointed to the situation with the banks in the US as an example of unregulated markets that have not succeeded.
The concept of managed liberalisation was birthed by former and late communications minister Ivy Matsepe-Casaburri. The sentiment that the industry should be liberalised in a controlled environment did not make the late minister popular, and many in the industry hoped the term would be dropped under the new administration.
However, at a discussion held this week at Neotel, the minister revealed the concept of managed liberalisation was at the forefront of government policy where the telecoms industry is concerned.
Nyanda explained yesterday that the policy has the support of both the department and the ruling party. “The view that markets will self-regulate and promote competition among themselves is nonsense,” he added.
The minister noted that the interests of the large operators are primarily considerations of financial gain and are made at a corporate level. Government's task is to temper that. “It is not an ideological thing. Where competition is necessary, we will liberalise,” he said.
According to the minister, part of what needs to be managed is the training of employees in the sector and proper employment for those who want to take on the jobs.
The process of liberalisation is already on the cards, with the licence conversion of around 400 value-added network service providers to potential fully-fledged telcos, he pointed out.
Nyanda added that this, with the blurring effects of convergence, will create a space where competition will be among the top telcos, both fixed-line and mobile. “There will be little distinction between fixed-line and mobile when convergence becomes a reality. With that in mind, we will have more than five operators established in telecoms,” he noted.
The telecoms market has long lamented the policy, saying the department's hand in the industry is too heavy. Many have called on the department to withdraw from policing the sector.
However, Nyanda is adamant the industry should be used to bolster the economy and says the department will form part of the growth operation.
Share