Roy to the rescue
Deputy communications minister Roy Padayachie, seen as a leading candidate to take the reins from outgoing minister Ivy Matsepe-Casaburri after this month’s general election, wants to convene an urgent summit of industry leaders to discuss ways of mitigating the effects of the global economic crisis on SA’s information and communications technology sector.
At the same time, Padayachie says government is reviewing its controversial policy of managed liberalisation — involving the gradual introduction of new telecommunications competitors — and hints that big changes to telecom policy could be in the offing in a Zuma administration.
He has also welcomed the recent court victory by technology group Altech and says if government had moved sooner to open the market to competition, the industry would have had a better chance to develop and grow. The Altech victory means almost anyone can now build a communications network in competition with the incumbent operators.
Padayachie won’t say if he’s in the running for Matsepe-Casaburri’s job. But he has ensured he’s had a higher profile in recent months. Now he wants to spearhead an industry discussion to find ways of tackling the economic crisis.
In an exclusive interview with the FM, Padayachie says he has not yet decided if the sector warrants intervention — indeed, it’s one of the few sectors in SA that continues to grow strongly.
“We are, however, seriously concerned about potential job losses.”
He says short-term policy and regulatory changes may be warranted, pointing out by way of example that regulations that bar foreign control of pay-TV operators in SA may have needlessly led to the closure of Telkom Media
“Does [the crisis] not require us to consider policy and regulatory options that allow a special dispensation for, say, three years? I don’t know the answer but it’s worth raising the question,” he says. “We need to . get the industry to engage actively on these questions so that concrete proposals can be put on the table.
“We don’t want to create the expectation of financial bailouts in the sector. But we have a responsibility to try to arrest a decline in growth and the sector’s ability to contribute to and help rescue other sectors in the economy.”
Padayachie wants to convene a small working group as soon as possible. “We will be issuing invitations to people,” he says. The working group’s findings will then be fed into discussions at Nedlac.
However, many industry executives blame government for impeding rather than aiding the sector. Matsepe Casaburri has repeatedly resisted attempts to liberalise the sector.
But Padayachie says the minister must be given credit for not pursuing an appeal in the Altech matter. “That, in retrospect, is a positive development. Of course, [we should have] taken that position earlier and allowed the industry to grow.”
Department of Communications discussion
Loading ...