Mbeki calls for more competition in ICT sector

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More competition in the information communication and technology (ITC) industry is needed to reduce the cost of doing business, says President Thabo Mbeki. Speaking after a three-day meeting of the Presidential International Advisory Council on Information Society and Development in the North West today, he said the second network operator could ensure the reduction of telecommunications costs.

"In South Africa you pay more than 25c for a line. In India 5c for the same service. The 2nd network operator will help to reduce costs. We also need to take wireless technology to the rural people. A variety of things can be done to reduce the cost," he said.

The second network operator will be granted its license within a month and could start operating almost immediately. This would end Telkom's monopoly of the market.

:D It took me 15 min to get off the floor

and lets say is the fun going to start soon
 
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Sneeky

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What Mbeki says, and what actualy happens, might well be 2 very different things.
 

lewstherin

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IBIWISI...mbeki said much the same crap in the Union address...that was over 200 days ago...
 

Freaksta

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Lets Have Our Fingers Crossed

:mad: Lets hope that there will be a new telecommunication company coming out so we can leave Helkom to die.. the only bull thing is that i'm in for 2years of Helkoms high prices. Who knows how much it is to cancel your contract? :mad:
 

Freaksta

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Thats not to bad then if it is 10% then it will cost about 1500 - 1800 rands
 

Sneeky

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Also, what happens to the 'scheduled 1st of November telkom price armageddon' then:D
 

mcleodd

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ir_tazz_killer said:
More competition in the information communication and technology (ITC) industry is needed to reduce the cost of doing business, says President Thabo Mbeki.

This is significant. This is an admission by the president that competition is the best way of bringing down telecommunications costs. The president gets it. Now, let's take it to its logical conclusion, Mr President: let's open the market to anyone that wants to offer telecommunications services. Why should your minister of communications, Ivy Matsepe-Casaburri, determine the number of competitors in the market? What does she know about market forces? What does she know about how this industry should or could develop. Very little, I'd submit. Throw open the market. There is no justification (was there ever one?) for limiting the number of competitors in this sector.

Duncan McLeod
(I'm technology editor at the Financial Mail but I'm speaking in my own capacity here.)
 

Freaksta

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mcleodd said:
This is significant. This is an admission by the president that competition is the best way of bringing down telecommunications costs. The president gets it. Now, let's take it to its logical conclusion, Mr President: let's open the market to anyone that wants to offer telecommunications services. Why should your minister of communications, Ivy Matsepe-Casaburri, determine the number of competitors in the market? What does she know about market forces? What does she know about how this industry should or could develop. Very little, I'd submit. Throw open the market. There is no justification (was there ever one?) for limiting the number of competitors in this sector.

Duncan McLeod
(I'm technology editor at the Financial Mail but I'm speaking in my own capacity here.)



I Agree i dont think that there should be a limit to the number of cometition
 

CyberMatix

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I would submit that competition in the ICT sector is a very low priority in the mind of Mbeki. The populist support for Zuma from Cosatu and the Communist Pary surely weighs more heavily on his mind. Just remember that these guys (Zuma and his pals) have a slightly different outlook on competition than Mbeki has, formed in the Moskow School of Business. Their answer to this question is simple, nationalize everything.

I wouldn't hold my breath.
 

Sneeky

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CyberMatix said:
Just remember that these guys (Zuma and his pals) have a slightly different outlook on competition than Mbeki has,

The South African legal system doesnt like this 'different outlook' to much it would seem :D
 

LoneGunman

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You misunderstand what Mbeki meant - he said he wants some competition - he means like raffle tickets, or draws for a new car, free beauty makeovers - that sort of thing..
 
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Antonio

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yeah, in the near future I can see some severe competition South African style:

Telkom - ADSL 30Gb R2000.00
New Guys - ADSL 30Gb R1999.99
We - "wow"
 
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