Communications bill ushers in demise of Telkom’s monopoly
The bill would finally end the state-sanctioned monopoly of Telkom and free up the telecommunications, technology and broadcasting markets, Mpetjane Lekgoro told a conference hosted by Atio this week.
“It allows open access to infrastructure and facilities for any operator to provide any service to any user,” Lekgoro said.
“Users can migrate between providers at any time, ensuring that end users have choice.
“It offers multiple operators the chance to exploit multiple opportunities.”
Industry players are less convinced, however, as it is still not clear exactly how far the bill will let them go.
Internet service providers will be allowed to build their own networks but it is not clear if they will be licensed to build a national infrastructure.
The bill says the Independent Communications Authority of SA will be given directions from Communications Minister Ivy Matsepe-Casaburri about which organisation can apply for what type of licence.
The bill will allow government to unbundle Telkom’s “local loop” — giving other voice and data carriers direct access to the telephone lines into individual homes and businesses.
It will let rival players deliver services without replicating the massive infrastructure needed to reach each customer.
Open access to those facilities would encourage innovation and let operators provide a greater choice of services with lower prices, Lekgoro said.
He hoped the end result would be a variety of service providers delivering entertainment, e-commerce, e-health, e banking and e-government services through the television, telephone and internet.
The new opportunities would trigger a wave of mergers, acquisitions and partnerships as companies united to achieve economies of scale, he said.
Lekgoro said the bill should ensure that existing structures within the industry no longer prevented competition, but led to universal access and more broadband services, with their inherent benefits of job creation and greater opportunities for entrepreneurs.
The communications department has promised Matsepe Casaburri will announce additional measures to liberalise the industry and bring down the cost of communications this month.
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