Has Minister backtracked on SAT3 exclusivity?
Initial Policy Directives
Communications Minister Ivy Matsepe-Casaburri announced earlier this year that ‘as from November 1, 2007 all exclusivity provisions contained in the SAT-3 agreements shall be declared null and void in South Africa.’
This was widely welcomed by both industry players and consumers, who are hoping that competition on SAT-3 will result in lower international bandwidth rates and ultimately more affordable broadband services.
In the initial notice, inviting comments on proposed Policies and Policy Directions published in Government Gazette 29923 on 25 May 2007, the Minister clearly stated under the heading ‘International Terrestrial and Submarine Cable’ that:
“I have taken the policy decision, in terms of section 43 (11) of the ECA to consult with relevant governments of the SAT-3 consortium members indicating 1 st November 2007 as the date from when the exclusivity provisions contained in the SAT-3 agreements or arrangements entered into shall be declared null and void in South Africa.”
Final Policy Directives
In the final policy directives published on 17 September the SAT-3 exclusivity directive is ominously absent from the document.
In the Government Gazette No. 30308, the Policies and Policy Directions as Drafted in terms of Section 3(1) and (2) of the Electronic Communications Act, 2005 (Act No. 36 of 2005) were published.
The absence of the SAT-3 Exclusivity directive from this document raises questions as to whether the SAT-3 exclusivity enjoyed by Telkom – which is widely seen as the main reason for the high international bandwidth costs in South Africa – will continue uncontested.
Matsepe-Casaburri was severely criticized for her recent announcements that SAT-3 competitors SEACOM and EASSy may be prohibited from landing their cables in South Africa.
These latest developments only serve to undermine any remaining trust that the public may have that the Department of Communications is doing its best to introduce competition in South Africa.
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