From http://www.iol.co.za/index.php?set_id=1&click_id=13&art_id=vn20051017060002392C705491
The lack of competition for Telkom is hampering South Africa's growth and, if nothing is done about it, the country will fall behind its African competitors, a leading telecommunications expert has warned.
Dr Tim Kelly, head of the Strategy and Policy Unit at the International Telecommunication Union, said that while cellphone usage had grown tenfold over the past 10 years, fixed lines had stagnated.
Kelly said that in 1995, there had been 10 times as many fixed lines compared to mobile lines, whereas this year there were four times as many cellphones compared to fixed lines.
In a study he presented at the second colloquium on telecommunication prices recently, Kelly showed that in 1995, there had been 10.1 people out of every 100 000 who had a fixed line compared to 1.4 people who had a cellphone.
Nine years later, cellphone users had dramatically increased to 43.1 to every 100 000 people, while landlines had increased marginally to 10.6.
In the growth rate of teledensity in Africa - that is people who either have a fixed line or landline - South Africa's growth rate was poor.
Since 1993 to 2004, when the study was carried out, South Africa's teledensity grew by 14.9 percent, while in countries like Mauritania it grew by 43.5 percent, in Gabon by 26.2 percent and in Botswana by 25.1 percent.
"South Africa's performance since privatisation has been below expectations.
"The key factor is the degree of competition," Kelly said, adding that the lack of competition to Telkom was keeping prices high.
Addressing the colloquium, deputy minister of communications Radhakrishna Padayachie said the government would not hesitate to intervene in forcing telecommunications operators to lower their tariffs.
A working group presented a report on South Africa's telecommunication prices revealing that if the country was to achieve a six-percent growth rate, the price of telecommunications needed to be reduced.
According to the report, the economic boom has not filtered down to telecommunications in the form of lower prices. Part of the problem is because of Telkom's monopoly.
Paris Mashile, the chairman of the Independent Communications Authority of South Africa, said that when there was competition in the telecommunication sector, operators were forced to lower their tariffs.
The lack of competition for Telkom is hampering South Africa's growth and, if nothing is done about it, the country will fall behind its African competitors, a leading telecommunications expert has warned.
Dr Tim Kelly, head of the Strategy and Policy Unit at the International Telecommunication Union, said that while cellphone usage had grown tenfold over the past 10 years, fixed lines had stagnated.
Kelly said that in 1995, there had been 10 times as many fixed lines compared to mobile lines, whereas this year there were four times as many cellphones compared to fixed lines.
In a study he presented at the second colloquium on telecommunication prices recently, Kelly showed that in 1995, there had been 10.1 people out of every 100 000 who had a fixed line compared to 1.4 people who had a cellphone.
Nine years later, cellphone users had dramatically increased to 43.1 to every 100 000 people, while landlines had increased marginally to 10.6.
In the growth rate of teledensity in Africa - that is people who either have a fixed line or landline - South Africa's growth rate was poor.
Since 1993 to 2004, when the study was carried out, South Africa's teledensity grew by 14.9 percent, while in countries like Mauritania it grew by 43.5 percent, in Gabon by 26.2 percent and in Botswana by 25.1 percent.
"South Africa's performance since privatisation has been below expectations.
"The key factor is the degree of competition," Kelly said, adding that the lack of competition to Telkom was keeping prices high.
Addressing the colloquium, deputy minister of communications Radhakrishna Padayachie said the government would not hesitate to intervene in forcing telecommunications operators to lower their tariffs.
A working group presented a report on South Africa's telecommunication prices revealing that if the country was to achieve a six-percent growth rate, the price of telecommunications needed to be reduced.
According to the report, the economic boom has not filtered down to telecommunications in the form of lower prices. Part of the problem is because of Telkom's monopoly.
Paris Mashile, the chairman of the Independent Communications Authority of South Africa, said that when there was competition in the telecommunication sector, operators were forced to lower their tariffs.
