Sentech, the Universal Services Access Agency of SA (USAASA) and Broadband Infraco will be put to use in the roll-out of rural Internet infrastructure, says the Department of Communications (DOC).
Speaking yesterday at the closing of a two-day broadband colloquium, in Midrand, communications minister Siphiwe Nyanda said the three state-owned enterprises (SOEs) will have a key role in providing infrastructure to areas that private enterprise has been reluctant to invest in.
He said that while only USAASA and Sentech fall under the DOC's umbrella, Broadband Infraco will also be tasked with infrastructure roll-out that would otherwise go uncovered. “Through these entities, government seeks to reach under-serviced areas where some of the private sector companies are reluctant to invest in for a variety of reasons,” he added.
The minister's emphasis on the SOEs follows questions raised by the industry during the two-day colloquium on the roles they would play. USAASA delegates asked a panel of DOC representatives what the agency's place in universal provision of broadband would be.
USAASA's concerns are not without merit, since strong rumours have been circulating over whether the communications department would keep the agency up and running. Similarly, Infraco's place in the provisioning of broadband has been questioned, and many in the industry are concerned the company would offer retail services.
Government's draft broadband policy also precludes it from running the retail race, restricting it to infrastructure provision only.
Sentech has long attempted to play in the retail space; however, earlier this year, the company finally killed its retail broadband product. It has since focused on access and broadcasting provision for the coming Fifa 2010 Soccer World Cup.
Despite the statement by the minister, he is not convinced these three agencies will be able to manage infrastructure roll-out on their own. During his speech, the minister called on the industry to work with the agencies to provide Internet access to all citizens.
“As the ICT Industry, you need to ask yourselves whether these two organisations are able to deal with the mammoth task of connecting the nation by themselves. If the answer is no, then what is it that you, as industry, ought to do to ensure these important SOEs are better positioned to respond adequately to the needs of our people?”
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