‘SA could learn from Africa’

Africa responds to telecoms and broadcasting challenge

Various countries in Africa have in the past lagged behind the international trend to introduce commercial (private) broadcasting services to supplement public broadcasting services, but  are catching up – and quickly. 

Many countries which had restrictive legislation that did not provide for private broadcasters are now implementing enabling legislation.

South African corporate and commercial law firm Werksmans represents a number of major South African telecommunications and broadcasting companies in various African markets, and has made representations in many of these jurisdictions, calling on legislators to introduce legislation that is technology-neutral, in line with international best practice, and which will enable future technologies rather than delay their commercial launch into the market.

Amanda Armstrong, Fayeeza Kathree-Setiloane and Wendy Rahamim, telecommunications and broadcasting law specialists at Werksmans, say a factor vital to a flourishing telecommunications and broadcasting sector is a legislative and regulatory framework that is flexible enough to cater for future technological changes - whatever they may be.

"The challenge facing the telecommunications and broadcasting industry is that the services it can provide change so fast technologically, that regulation is unable to keep up with technological developments. This holds back economic growth." says Fayeeza Kathree-Setiloane.

She says the international best practice is not to license a service provider for a particular technology, but to issue technology neutral licences.

"Many African countries have identified the telecommunications and broadcasting sector as vital to economic growth and have adopted the international best practice of technology-neutral regulation, thereby attracting investment flows ahead of their neighbours," says Amanda Armstrong. This demonstrates an understanding of the unique nuances of the technology sector.

Whilst the trend is by no means uniform, or even a general trend, there are pockets of liberalisation in Africa, and these countries are attracting investment flows, they say. 

Werksmans cites a number of African countries that have adopted this approach, and are today host to the latest services such as digital terrestrial television and mobile broadcasting (broadcasting to cell-phones), whilst others like South Africa are inhibiting the development of new services using innovative technologies.

Broadcasting innovations which are being held back in South Africa include such vital services as digital terrestrial television – the format in which the 2010 FIFA Soccer World Cup is required to be broadcast – and mobile broadcasting.

South Africa’s policies on new technologies and services and the implementation thereof are lagging way behind.  As a result, service providers have diverted commercial opportunities to elsewhere in Africa.  Consequently, South Africa’s telecommunications and broadcasting service providers are increasingly investing in more liberal African countries that have either the relevant enabling legislation, or at least have no prohibiting legislation.

For instance, mobile broadcasting services have been launched in Namibia, Nigeria, Uganda and Kenya, each ahead of South Africa.

"South Africa could learn a lesson from some African countries that have liberalised their regulations," says Wendy Rahamim.

"Markets drive trends" says Armstrong, "not governments.  Governments need to allow the markets and technology to move forward."  African countries can attract substantial foreign investment by introducing telecommunications and broadcasting legislation which is flexible and 'light touch'.

Telecoms discussion

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