DoC: Wag the dog

Parliamentary Portfolio Committee chairperson has harsh words for ICASA, the DoC and the ICT sector

The Wits Graduate School of Public & Development Management (WITS P&DM) hosted a public lecture at which the Chairperson of the Parliamentary Portfolio Committee in charge of Communications, Ismail Vadi, shared his views on the private telecommunications sector.

“We need a better and more effective coordination of all the structures of government involved in the ICT sector,” said Vadi, talking about the failings of the previous administration in setting ICT policy. The last five years were “a period of policy incoherence, administrative obfuscation and ineffective leadership.”

To illustrate the point, Vadi cited Thabo Mbeki, who announced in 2007 that the Department of Communications would finalise plans to address termination rates that year, and that Telkom would introduce a special low bandwidth rate for 10 development centres in the BPO (Business Process Outsourcing) sector. None of these goals were achieved.

Vadi blamed the DoC for providing the presidency with targets and policy objectives that it failed to implement. The portfolio committee itself saw three chairpersons appointed within five years, creating leadership instability, and hindering the oversight role and focus of the body.

“In the past five years, the Department of Communications could best be described as an ICT tail that belatedly tried to wag the dog,” said Vadi.

ICT Challenges

Vadi went on to outline three challenges that the ICT sector is facing today: “Universal access to telecommunications services, the high cost of these services, and the need for better implementation of policies.”

“I believe there is consensus among all ICT stakeholders on the principle of digital inclusion and universal access, as it is a vital pillar of an information society, yet it has not happened. There is no consensus on the principle of affordability.”

Vadi called for a renewed drive by government, regulators, industry and civil society, for digital inclusiveness for all members of South African society, and not just those who can afford it.

On the issue of the high cost of ICT services, Vadi cited numerous studies which illustrated how much South Africans have to pay. “It is incomprehensible to me that a standard mobile call in India costs 20c, while that same call in our country will cost R1.99.”

“These high rates come against a backdrop of the phenomenal profits our telecoms and mobile operators declare each year. In the face of growing poverty, such conduct by the private sector is morally indefensible.”

ICASA failings

Vadi went on the lambaste ICASA for its failings: “ICASA has not succeeded in reducing costs. It has lacked clarity of purpose and confidence to act decisively. Its recommendations have been simply ignored by the industry and its rulings, more often than not, are legally challenged.”

“ICASA needs to act with courage, efficiency, professionalism and speed. [The portfolio committee] is struggling to understand why the [interconnect] issue has not been concluded. We put it down to a failure of leadership.”

“We don’t believe that the procedures outlined in the Electronic Communications Act are onerous and ambiguous. Our call to ICASA is to get on with the job. The recent experience of the Competition Commission has shown that sometimes the private sector changes not when you bark, but when you bite.”

“What distinguishes the Competition Commission from ICASA? Why is it that in a shorter period of time, the Competition Commission has been able to do difficult work that is often challenged by the law, while ICASA can’t?” Vadi questioned.

ICASA expectations

“On a recent oversight tour of ICASA, we discovered that there are sharp tensions and divisions between the councillors and the management. The council does not see the administration as a vital resource for its own work. They are almost working in opposite directions,” said Vadi.

To solve the problems with the regulator, Vadi said: “We are putting a premium on the accountability of councillors. One of the key performance indicators will be delivery on interconnect rates.

If they fail to do so, we will have to act against them. We have demonstrated that we have the capacity,” said Vadi, citing the dissolution of the SABC board. “This sends a message out to all boards of state entities.”

“ICASA must deliver a policy package to get aggressive competition started in the economy. We don’t understand why it hasn’t happened over the last five years, so that is what we are demanding.”

DoC, ICASA & the ICT industry - discussion

Free Daily Newsletter Subscription  ||