Cisco Systems in currently engaged in talks with the country`s second network operator (SNO) about the deployment of affordable broadband models in SA, the group said this week at the Networkers 2006 conference in Sun City..
Dr Clive Fynn, MD of Cisco Systems SA, confirmed that the company is engaging with the SNO on a "range of issues", including how to push for the deregulation of the telecoms sector.
Fynn told journalists that Cisco does see an eventual shift away from the current Telkom-held monopoly, as the market opens with the introduction of the SNO.
Cisco`s president of emerging markets, Paul Mountford said he expects Telkom to migrate over time to a lower price model, as the sector becomes more competitive.
"They have to also do what their shareholders expect from them, so this would not happen over night," he said, adding that he was confident telecoms prices in SA would eventually decline.
"Some mobile operators may emerge with fixed licences, so eventually three or four strong players may emerge."
Mountford commented that a more competitive telecoms sector would ensure a stronger economy. The call centre industry, for example, is being held back in this country by prohibitive telecoms costs, he said.
Importance of telecoms
Mark de Simone, Cisco`s vice president for the Middle East and Africa region, said he believes Telkom is seeking to become more active in the deployment of broadband services, perhaps from an Internet service provider perspective.
He commented that most emerging countries understand the importance that telecoms play in economic growth and development. The country is lacking the necessary skills and its broadband market is underdeveloped, De Simone stated, but added that training authority Isett Seta is "very progressive."
Responding to whether the South African government has a definite strategy to drive ICT development within the country, Fynn told journalists that the State indeed made a "clear commitment" to develop the sector.
"SA has a clear vision. President Thabo Mbeki has driven many ICT initiatives in Nepad (New Partnership for Africa`s Development)," he said.
He denied that government seems to be underspending on ICT, saying there is substantial investment, specifically in the broadband space, where the country faces the challenge of putting in place adequate infrastructure.
Thus, he said, government may have to use vehicles such as Sentech or Telkom to deliver broadband services to the country.
"In the short term, I think enough is being done," Fynn commented, adding that much of the ICT sector is also driven by a robust entrepreneurial trend.
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