Why reinvent the wheel?
One of the features of the Internetix event staged by Internet Solutions was a panel discussion with leaders in the telecommunications industry. The theme of Internetix 08 was Africa Rise and my compliments to IS for providing the platform to debate the changing landscape of communications in South Africa. Whether or not the landscape has changed much since last year’s panel discussion was debated with frankness by the panellists.
Ajay Pandey, MD and CEO of Neotel was outspoken about the issue of deregulation. He said that "there is so much good practice elsewhere in the world that we should make them our own."
Vodacom’s Alan Knott-Craig said that "South Africa’s poor penetration of the internet is because of regulation. We need new ways of dealing with it – re-architect the process!" Telkom’s Thami Masimango agreed. He said that industry should be able to influence policy and not be seen as the attackers of policy.
The man in the middle of the debate, Independent Communications Authority of SA (ICASA)’s chairman Paris Mashile, said that consumers have a weak voice and need to be protected. However industry should adapt. "We are all in it together. Every one has a stake in achieving an optimal solution." From the debate it became clear that industry wants deregulation and government wants to control. Yes, ICASA holds public hearings but they delay the process. As Pandey said: why can’t we adopt best practices and stop inventing our own?
One of the main issues in the debate was about allocation of frequencies for WiMAX. The market must be liberalised and space opened up for new players. Value added networks should help to deliver in the ICT sector. Revoke restrictions so that everyone can compete freely. Another principle that should be implemented is "use it or lose it". Currently much of the available WiMAX spectrum is licensed to operators who hold onto the frequencies but show little effort in actually deploying services.
The question of WiMAX spectrum allocation to Sentech was a point in question. While Mashile agreed with the concept of use it or lose it, he defended the allocation to Sentech which up to now is not being used. His point was that Sentech should be given a fair chance to come to an investment agreement with its bosses, the Department of Communication. He said "for all we know it is imminent." His comment did not find much favour.
The other issue is that any WiMAX licensee must have a 51% BEE ownership. Why should ICASA engage in BEE issues? Its job must be to regulate and ensure that spectrum is used in the most economic way. Bandwidth allocation is another issue. Why is ICASA stuck on 20 MHz when the international norms are closer to 30 MHz? What is the point of cramming more operators in the available spectrum when from the start, the 20 MHz allocation will be inadequate?
Spectrum allocation versus spectrum auction is yet another issue. Mashile explained that ICASA does not favour spectrum auctions as it leads to monopolies with a few large operators obtaining spectrum and not using it to roll-out services but rather to keep out competition. "ICASA favours a pay-as-you-earn approach. Allocate the spectrum to those who will economically benefit South Africa and charge them based on their income or turnover." He said that the treasury had agreed to such an approach.
Should ICASA not stick to its job to regulate the telecommunications environment? Empowerment should not be its call. If other government agencies are doing their job, empowerment issues should never be a problem as everyone would compete for spectrum and licences on an equal basis. Too much interference will lead us nowhere. Let competition regulate the market.
EngineerIT
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