Promises, promises…
The colloquium’s findings seemed to hold much promise. Communications Department Deputy Minister Roy Padayachie – a strong official who one sensed would get things done – promised the market would start to see the first steps of implementing the working group’s proposals within six to eight weeks of the colloquium.
Padayachie missed his own deadline of early December.
The proposals, which came about after the first round of the colloquium led to consensus that SA’s telecoms prices were too high, were about changing this. They ranged from unbundling the local loop, to regulating access to international cables (Telkom owns the landing rights), allowing the Value Added Network Service providers (VANS) to self provide their own infrastructure and strengthening the regulator, among other things.
OK, so everything in government inevitably takes longer than even the initial worst-case scenario. But perhaps we finance journalists get all the more frustrated with this given that in the corporate world, deadlines are more generally adhered to. In this world, broken promises can lead to a fall in the company’s share price. Unfortunately, in citizen perception terms, the DoC’s share price has been a huge underperformer, particularly in relation to that of a department like treasury.
Let’s take a look at what Padayachie promised. First of all, he said the colloquium was not going to be just another talk shop. He said the industry would have another two weeks after the colloquium to make submissions to the department, during which time it would meet with the operators and with Icasa to clarify plans for implementation. Padayachie said he would put certain points to the minister for consideration as ministerial determinations. Icasa could be called to regulate in some areas, and if necessary, legislative amendments would be implemented.
The DoC did meet with the operators in late October or early November and a statement about their intention to work together to find a solution was the result.
According to DoC Acting Chief For Media And Communications Albi Modise, the department is currently considering the report of the working group and subsequent submissions and the document is with the director general Lyndall Shope-Mafole’s office. Thereafter, it will be passed on to the minister for consideration on what steps should be taken.
Modise says without making excuses, the process has been a long one given that it has been very consultative and is such an important issue. So the department must get the detail right. Also, such a process is not about one individual, but a matter being handled by the whole department.
As a citizen and hence a shareholder in this country, I’d personally love to see the DoC helping out its own share price by sticking to its promises and time frames.