Skepticism about DoC’s ability to lower telecoms costs
A recent online poll on MyADSL shows that most users on the site do not think that the DOC will be able to effectively reduce telecoms costs.
This lack of belief in the ability of the DOC to positively affect change may stem partly from the delay of the SNO (Second National Operator).
Consumers have been left high and dry on a number of occasions. In May 2001 the DOC stated that 7th May 2002 was the expected switch-on date for the SNO as quoted on ITWeb.
This date came and went with no concrete explanation for the delay. More dates and promises were bantered around with the debate becoming more heated in the last two years.
Throughout 2005 the DOC talked about the SNO license as ‘imminent’, and not surprisingly the same term was used by the deputy minister, Roy Padayachee, at the DoC Colloquium. Again no specific dates were given.
ICASA (Independent Communications Authority of South Africa) counselor Lumko Mtimde stated on the 5th of July 2005 that it was difficult to give specific dates but they hoped to complete their work within a month.
Progress regarding introducing competition in the telecoms industry is further hampered by rumours regarding a shake up within ICASA.
The recent move of suspending two ICASA members and issuing warnings to ten others by the newly appointed chairperson of ICASA, Paris Mashile, has unnerved certain segments of the economy.
Recent comments from Paris stating the role of ICASA has caused a few waves especially amoung DA (Democratic Alliance) MP’s.
Mashile said: “Regulation is sublegislation, it is the implementation of policy,” furthermore he stated that, “I’d like to establish a continuous link with the department of communications.”
According to Dene Smuts, the Demorcratic Alliance (DA) spokesperson on communications, this is a “fundamental misunderstanding of ICASA’s role”.
The regulator is not the executive arm of the Executive but is supposed to make its own rulings in terms of the principles and procedures laid down in the law and to regulate the industries in the public interest.
Debate regarding the role of the national regulator does not bode well for South Africans.
Research by the Organisation for Economic Cooperation and Development (OECD) presented at the recent DOC colloquium by Taylor Reynolds indicates that it is vital to have a strong regulator in order to increase competition leading to reduced telecoms costs.
The fact that SA consumers display skepticism regarding the DOC’s ability to reduce telecom prices is not unjustified. This makes the next DOC move all the more interesting as they work to regain the trust of the South African public.
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