random_seed,
In terms of Sentech's multimedia license, and indeed, Telkom's own license, it is not illegal to transmit to satellites. Telkom and Sentech VSAT customers actually have bi-directional satellite connections.
As for the question of globalisation and overseas companies being allowed into a deregulated market: I wish it were as simple as that. In the short term, some compettition from overseas would probably benifit those people who want massive internet connections, but in the long term, it will be bad for all of us.
Consider this nightmare future scenario:
2005: The S.N.O. is licensed and starts to do business, selling basic voice services only at around the same prices Telkom charge.
2007: The South African telecommunications industry is completely deregulated and local and overseas companies start preparing to enter the South African market. SBC sell their massive stake in Telkom, providing them with capital to construct their own infrastructure, and causing Telkom's share price to plummit, leading to job losses and price increases.
2009: SBC complete their infrastructure and start selling service directly to the South African consumer, at about 20% of the price charged by the S.N.O, and about 10% of the price charged by Telkom. Consumers flock from the S.N.O. and Telkom to the SBC, who will at that time, be considered the telecommunications Messiah. Everyone gets cheap broadband and free local calls. The exodus of customers from the S.N.O. and Telkom causes a confidence crisis amongst their remaining shareholders and both companies collapse in a spectacular Saambou bank like financial fiasco.
2010: In the wake of the collapse of the only local companies providing national service, SBC uses its buying power to buy out the infrastructure from both defunct companies, to augment its own infrastructure. It then uses its dominant position to underprice its competitors and drive them out of the market through buy-outs or bankruptcies.
2011: SBC is the only remaining telecommunications operator in South Africa. Suddenly, prices begin to rise, service levels begin to drop, infrastructure investment stops completely. Now, we find ourselves paying prices set in Dollars, which are about 5 times higher than even Telkom charged us in 2004, and to top it all off, because the industry is deregulated, both ICASA and government can do absolutely nothing about SBC ripping off the entire country for the benifit of their rich, fat American shareholders.
2020: After nine years of stiffled economic growth and the collapse of many South African businesses, due to the extortionist pricing of SBC, the only operator, the government decides to nationalise all telecommunications infrastructure, to protect South African consumers and businesses. To avoid W.T.O. and U.N. sanctions, the government must now buy the infrastructure out from SBC, at an incredible price, which is passed on to tax payers, and causes the newly resurrected government operator, iTelkom, to charge the same high prices we pay now, just to fund the infrastructure buy-back.
The scenario depicted above is not alarmist. In fact, this has happened before to many developing countries, not just in terms of telecommunications, but in terms of all business. As soon as the market is opened to large corporations from dominant foreign countries, the corporations will take advantage of their size to underprice local competitors and drive them out of the market. Then, they use their monopoly position to milk the defenceless developing country for ever last cent.
All things considered, I'd rather have the regulatory status quo, than opening up the market and exposing us to this kind of danger. Perhaps, in 20 years or so, the economy may have matured and the currency gained value to a point where local operators could compete in fair market conditions with overseas operators. When that time comes, deregulation would be healthy, as it would encourage compettition, however, at the moment, and for the immediate future, deregulation would be the dumbest move we could make.
Willie Viljoen
Web Developer
Adaptive Web Development
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