Presentation to the Portfolio Committee on Communications
3 April 2001
by S. Mokone-Matabane
Sentech
I wish to thank the Committee for the opportunity to make an oral representation on the new telecommunications policy. Sentech is in the process on preparing a written representation to be submitted by the 02 May 2001 deadline set in the government gazette of 23 March. Today's input will not be as comprehensive as the later one to be submitted to the Department of Communications.
Sentech is of the view that this new telecommunications policy is long overdue. We also believe that the declaration of ICT as a priority for development of necessity meant that it would be important to review the relevant policies, laws, and regulations in order to create an environment conducive to bridging the digital divide and the introduction of managed liberalisation. The new policy and appropriate amendments to the relevant acts will need to be speeded up so that new players are ready to enter the market at the end of Telkom's exclusivity period in May 2002.
Sentech strongly supports the proposed policy to grant it an international gateway licence, the ability to provide multimedia services and to operate the public safety radio communications services infrastructure. We believe that taking into account the imperative to address the problem of the digital divide, and government's declared commitment to the restructuring of the company, this decision was well considered and appropriate. There are a number of international precedents in Europe that are instructive for South Africa. Sweden and France are but two of several countries that, through government policy, transformed their state owned signal distribution companies to successful telecommunications and multimedia companies that address issues of public interest.
The policy in respect of economic empowerment of historically disadvantaged groups is welcome. The empowerment of women should also be underscored. It is hoped that government will also address some of the problems experienced by these groups in terms of raising adequate capital for investment and monitor the short and long-term effectiveness of this policy.
Specific attention paid to underserved areas and the idea of encouraging SMMEs and co-operatives and putting in place provisions that will facilitate affordability of services and sustainability of business operations is commendable. We encourage government to put in place mechanisms that will enable the SMMEs and co-operatives to raise the necessary capital to start operations. The empowerment of rural women in terms of ownership and management of these businesses must be encouraged.
Sentech supports the broad thrust of the new policy. We however would like to raise the following issues:
9.1: Under this clause, Sentech should be one of the companies allowed to carry voice over the Internet by virtue of the international gateway licence. In this way, Sentech would be allowed to do on an international service level, what other operators will be allowed to do in providing both domestic and international services.
11.1: Clause 5 states that Sentech shall provide multimedia services. Because fully bi-directional multimedia services are inherent in multimedia, Sentech should be included along with Cell-C, MTN, the SNO, Telkom and Vodacom as one of the operators that should be granted a 3G licence. The inclusion will provide better clarity in terms of Section 5.
Finally, Sentech reiterates its support the policy direction issued by the Minister of Communications. We congratulate the Minister and Department of Communications for meeting the deadline for providing the new telecommunications framework.
I thank the committee for the opportunity to present and will be happy to answer any questions.