Govt to tackle prices

lewstherin

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http://www.finance24.co.za/Finance/Economy/0,,1518-25_1579382,00.html
<blockquote id="quote"><font size="1" face="Verdana, Arial, Helvetica" id="quote">quote:<hr height="1" noshade id="quote">Cape Town - As part of its goal of lowering costs throughout the South African economy, the government will be unveiling a framework for regulating administered prices in September, according to Trade and Industry Minister Mandisi Mphalwa.
Briefing members of the press at Parliament on Thursday, Mphalwa said that work on the regulatory framework had been finalised by the National Treasury and was expected to go to Cabinet next month.

"We have to ensure that prices for such things as water, communications, energy and transport are accessible to the poor," he said.

"The regulatory structure involves harmonisation across the state-owned enterprises (SOEs) and more precise definitions of government expectations of SOEs, among other things."

He added that research had commenced into the practice of import parity pricing in the country, which was expected to be completed by the end of 2004.

"We are very concerned with this issue, because we believe it denies South Africa important opportunities for job creation and economic opportunity.

"As a low cost producer, we are unable to have the benefits of these low costs with import parity pricing - it is a critical issue - the selling price of products should reflect the production costs."<hr height="1" noshade id="quote"></blockquote id="quote"></font id="quote">
So DTI is looking at lowering communications costs? This is surely good news for South Africans.
Interestingly the DTI announces this on the same day as the SNO - could there be a link? Are we going to see some kind of licencing/legislative requirement that the SNO provide sustainably cheaper communications??

I'm getting the feeling that this is going to be an exciting time for South African telecoms...

<font color="blue">Telkom needs a leash, ICASA needs some guts, and the </font id="blue"><font color="red">SA consumer</font id="red"><font color="blue"> needs to make it happen</font id="blue">
 
"...are accessible to the poor"

Translation :
1. Will be subsidised by the rest (same as rates, taxes, water & lights)
2. 1 free hour a day (callmore time) (same as 1st 6KL of water free)

I doubt that we'll ever have cheap comms for all. Just my opinion


128K|21%|13SNL|36 Menlopark 2530
 
The telecomunications sector does not need more regulation. It needs de-regulation. It needs competition, not price regulation. Regulation does not really address the problem.
 
If things dont change soon I'm taking advantage of my british ancestry visa and buggering off for good.

<font color="navy"><font size="1"><b>Where others have progress, we have Telkom.</b>
Hellkom website - www.hellkom.co.za</font id="size1"></font id="navy">
 
ive been having the same thoughts, pity i dont have an ancestory visa

after hearing about bt expanding adsl, an seeing there prices ive been getting really impatient about this situation in sa!
 
Translated to baby speak:
As part of the job of the people who are responsible for providing services to the people, these people will hire more people to put in place a framework that has to be administered and looked after by still other people that was originally drafted and created by the national treasury group of people. This framework will aim to force companies owned by all the people to provide a service to all the people.

Summarised: We are going to get a bunch of people together, pay them a lot of money to try to get the companies that we own to do what they were created to do.

Alternative that would Actually work: We (the goverment) are going to force our companies to provide services to the people that we serve. We will do this in one meeting, and it will cost just about nothing.

Sigh - i'm a dreamer...

The more you know - the worse it gets.
 
Yep, the smarter you get, the more dumb people you meet... [:D]

Cheers
Antowan

### What we need in South Africa is cheap 24/7, always on Internet for under R300 a month. ###
 
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