The provision of an environment conducive to attracting investment into an industry that plays a significant role in growing South Africa’s economy has emerged as one of the key focus areas for new Telecommunications and Postal Services Minister Dr Siyabonga Cwele.

Speaking at a post-departmental budget briefing this week, he outlined several key plans that would revive the information and communications technology (ICT) sector and drive the efficiency of the newly formed department.

The implementation of the South Africa (SA) Connect broadband plan, lowering the cost to communicate and the roll-out of digital migration – all key focus areas of the former Communications Minister Yunus Carrim – were top priorities.

The telecommunications department would move to implement the SA Connect policy, which placed the department in a position to coordinate and support the roll-out of broadband infrastructure and services nationwide, to unlock higher economic growth.

Cwele noted that, with an allocation of R20-million in the current financial year, the first phase of the broadband plan would be finalised.

“By [the] end of this month, the business case that seeks funding to connect 580 clinics, 4 444 schools, 182 police stations, and 572 other government offices in the medium term [will be finalised],” he commented.

The telecommunications department also aimed to coordinate public institutions in the roll-out of broadband infrastructure and services.

“We will establish and operationalise a platform of engagement to facilitate an alignment of roll-out plans. There [needs to be] a more focused [approach to rolling out] infrastructure and closing infrastructure gaps without duplicating initiatives,” Cwele said during his Budget Vote to Parliament.

Further, tighter and more efficient regulations would play a key role in ensuring the sustainability of a “thriving” sector moving forward.

“It is in our national interest to grow the sector and promote competition in order to drive down costs and create job opportunities … and ensure a policy and regulatory environment that is conducive to the entrance and sustainability of new players in the market,” he said.

Regulations needed to bring “proper competition and proper pricing” to leverage the digital future of South Africa.

“Our high cost to communicate remains an impediment to ICT uptake and use by citizens, businesses and government. It contributes a substantial input cost, which discourages investment.

“Let us [continue to] find a way to lower the cost to communicate,” he urged, acknowledging the efforts of industry in reducing prepaid mobile costs, as well as the reduction in the mobile termination rates led by the Independent Communications Authority of South Africa (Icasa).

The department would, in September, also task Icasa with developing regulations on pricing transparency, forcing companies to transform their pricing structure to enable consumers to have “a clear understanding of the true costs [of] the services they pay for”.

The department was also planning to undertake a national roaming study to determine cost implications, including discriminatory behaviour, for new entrants and smaller operators, in particular, during this year.

A broadband market value-chain study to assist Icasa in developing regulations for broadband pricing had already been completed.

Further, the telecommunications department has accelerated the digital migration ambitions of South Africa, with the long-awaited Broadcasting Digital Migration (BDM) policy to be tabled by the end of July and a new date for the “digital switch-on” to be announced within the next three months.

Cwele commented that Sentech had invested a lot of money in infrastructure that was now awaiting use, while, for the past two years, government has been paying for licences for the use of satellite technology to close the gaps where terrestrial infrastructure did not reach.

He pointed out that the new amendments to be tabled at month-end would not impact the standards for set-top boxes (STBs) that are required for the migration, allowing manufacturers to go ahead with production plans.

The earlier announced intention of having a control system for the STB installed, but its use not being mandatory, remained firmly in place.

A new date to switch on the digital signal would also allow the industry, manufacturers and television-owning households to “prepare accordingly”, as consumers would need to buy and install the yet-to-be-manufactured STBs.

NEW DEPARTMENTS
Following President Jacob Zuma’s reorganisation of Cabinet to “implement policy more efficiently and faster to achieve the National Development Plan (NDP) outcomes”, Cwele was left to lead the new Telecommunications and Postal Services Department into the digital era.

Despite public criticism of the decision to split the former Department of Communications (DoC) into two new departments, Cwele averred that the mandate of each department was clearer and that the reorganisation “brings it all together”.

He explained that the split allowed for a dedicated, focused approach to attaining the targets of the NDP, as well as the alignment of current government programmes with the new medium-term expenditure framework.

The newly formed department planned to draw on the R1.59-billion 2014/15 budget of the former DoC until the conclusion of the new budget processes or adjusted estimates, and the completion of the structures of the new departments.

ICASA IN LIMBO
While the process of restructuring the new departments was under way, Cwele said the fact that it was not yet decided whether Icasa would fall under the new DoC, led by Minister Faith Muthambi, or the Telecommunications and Postal Services Department, did not “give me any palpitations” as it was “one government” driving the same mandate.

He pointed out that government functioned as clusters and committees and collective decisions were taken in Cabinet.

“It doesn’t matter where [Icasa] is [housed],” he noted, adding that enabling the authority’s functions was more important and that Icasa needed to be strengthened and sufficiently capacitated to regulate the ICT and broadband environments effectively.