Socikwa: Local telecoms needs competition

By Itumeleng Mogaki, ITWeb junior journalist

Johannesburg, 09 Dec 2005

Competition for the fixed line operator, the deregulation of the sector, and empowering the regulatory body are all key to creating changes in the telecommunications market.

Karl Socikwa, CEO of Transtel, SNO spokesman and chairman of the SNO shareholders` steering committee, was speaking at the International Trade Centre (ITA) conference in Sandton yesterday on the eve of the official handing over of the SNO licence.

He cited as an example the cell phone industry: "Certainly we can learn from the cell phone industry that indeed competition does have an impact on prices and opens up the market for more players."

Socikwa said for years the market had been controlled by a fixed line operator and expressd hope there would be market changes. "With the deregulation of the sector, the SNO finally having its licence issued, there will be market changes, and hopefully we will see a competitive landscape in the telecoms market."

He said there`s a need to have a regulator that has resources and the capacity to intervene thus ensuring a healthy competition in the telecoms sector.

"The regulator is 'financially challenged`, thus there`s a need for a policy framework to be put in place and making sure it is relevant. The regulator must be empowered to regulate and intervene should it see fit."

Socikwa was referring to the ICASA amendment bill, which was supposed to address how the regulator will be funded as well as strengthen the operations of the organisation.

Asked about why it costs more to make a call to a neighbouring African country than it does to call Europe, Socikwa said he wished he was on the other 'side of the fence` as he had experienced the same problem.

Telecoms, trade and service sectors collaboration

Socikwa said there had been dramatic growth of trade and services in SA and that the telecoms sector facilitated the 'death of distance`. "The trade and service sector also depends largely on telecoms, as a way of creating more global in-trade services.

"For those countries that do not embrace telecoms, they will be in a position where they have limited access and are marginalised from the rest of the world, thus creating a constraint on growth of trade and services in those countries," he said.

According to the World Trade oOrganisation (WTO), South Africa accounts for 0.4 % of the global trade in commercial services. "We are largely driven by the travel and tourism industry, whereas India is driven by its IT, finance, marketing services."

"For offshore trade to experience further growth, there`s a need for organisations to see telecoms as an essential tool of communication, and for IT at large to play a role as an enabler," said Socikwa.