Cutting Icasa loose
The changes have been coming thick and fast in recent months. The long-delayed second phone operator finally looks set to get off the ground early next year. The complex and far-reaching Convergence Bill, which has been revamped and retitled as the Electronic Communications Bill, has been put to bed. And after years of resisting the move, government looks set to unbundle the “local loop”, arguably the most significant of its liberalisation initiatives. The move will give other telecoms operators direct access to the final section of Telkom’s phone lines — between the exchange and the home or business.
This is the only real way of introducing competition into a market that has been dominated by a single player for so long.
These are positive changes. But they will impose heavy obligations on the Independent Communications Authority of SA (Icasa), which regulates the sector. Icasa has long been underfunded, and remains so despite a big hike in its funding last year. And because it has to ask the communications minister to approve its rules, its independence has at times been questioned.
The recently mooted Icasa Amendment Bill addresses both of these issues, but in vastly different ways. On the upside, it proposes allowing Icasa to receive funding from sources other than government. This means it could tap into industry licensing fees to fund its increased responsibilities. That would give it a greater degree of independence, which is a positive step — as long as it accounts for its spending in a transparent manner and that any such move does not lead to a hike in already high fees.
But the bill also seeks to give the minister greater powers over the body. This is a mistake, particularly as government holds stakes in Telkom and the second operator. There is a clear conflict of interest in government acting as both player and referee. The move will threaten Icasa’s independence at the very time when it needs to be cut loose.
If government is serious about reducing telecoms costs and fostering competition, it needs to rethink this aspect of the bill.
Inet-Bridge
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