http://www.engineeringnews.co.za
  SEARCH
Login
R/€ = 14.25Change: 0.06
R/$ = 11.29Change: -0.01
Au 1207.71 $/ozChange: -0.98
Pt 1292.00 $/ozChange: -10.00
 
 
Note: Search is limited to the most recent 250 articles. Set date range to access earlier articles.
Where? With... When?








Start
 
End
 
 
And must exclude these words...
Close Main Search
Close Main Login
My Profile News Alerts Newsletters Logout Close Main Profile
 
Agriculture   Automotive   Chemicals   Competition Policy   Construction   Defence   Economy   Electricity   Energy   Environment   ICT   Metals   Mining   Science and Technology   Services   Trade   Transport & Logistics   Water  
What's On Press Office Tenders Suppliers Directory Research Jobs Announcements Contact Us
 
 
 
RSS Feed
Article   Comments   Other News   Research   Magazine  
 
 
Aug 15, 2012

Telkom monopoly a threat to ICT development

Back
Cape Town|Africa|PROJECT|Africa|South Africa|Communication Technology|Information-technology-enabled Services|Products|Services|Telecommunications Backbone|Telephony Markets|Jacob Zuma|Broadband|Communication Technology
|Africa|PROJECT|Africa||Products|Services|||
cape-town|africa-company|project|africa|south-africa|communication-technology-industry-term|information-technology-enabled-services|products|services|telecommunications-backbone|telephony-markets|jacob-zuma|broadband|communication-technology
© Reuse this



The domination of Telkom in South Africa’s telecommunications backbone and telephony markets is a threat to information and communication technology (ICT) development in the country, the newly released National Development Plan (NDP) 2030 has stated.

The plan warned that Telkom’s monopoly had seen deterioration in fixed-line connections that would further undermine South Africa’s future competitiveness unless it was addressed.

“The dominance has been ineffectually regulated, resulting in high input costs for businesses, which has, in turn, resulted in an increase in the costs of services and products. It has also inhibited investment in growth areas within ICT, such as business-process outsourcing and offshore information-technology-enabled services,” states the plan, which Minister in the Presidency Responsible for the National Planning Commission Trevor Manuel delivered to President Jacob Zuma in Cape Town on Wednesday.

Telkom is, further, cited as being a point of conflict for the State where it had to be both policy maker and player in the ICT market, since it hold a majority share in the group. As a result, the plan suggested that there was a need by 2015 to “assess State-owned enterprise and municipal performance in ICT provision and decide on the future role and configuration of the State's family of ICT enterprises (Broadband Infraco, Sentech and Telkom).”

During the period up until 2015, the NDP 2030 proposes that South Africa needed to focus on developing a more comprehensive and integrated e-strategy that reflected the nature of the ICT sector to affect a spectrum of personal and business needs, as well as addressing policy issues such as the need to adjust market structures and remove legal constraints to enable full competition in services.

From 2015 to 2020, the plan states two main goals should be pursued; firstly, extending broadband penetration in line with the Department of Communications' proposed target of 100% broadband penetration by 2020. In this project, all schools, health facilities and similar social institutions should be connected and individual citizens should have affordable access to information services and voice communication.

Secondly, and again key for both individuals and business, by 2020 strategic investment and regulatory guidance should result in Internet costs falling to match South Africa's peers. More specifically, South Africa should aim to position itself in the top quartile of the International Telecommunications Union's ICT Development Index ranking of middle-income countries and regain the country’s position as the continent's leader in both quality and cost of ICT services.

Edited by: Mariaan Webb
© Reuse this Comment Guidelines (150 word limit)
 
 
 
 
 
 
 
 
Other Telecoms News
Cell C has indicated its plans to challenge the asymmetry rates set within the latest mobile termination rates (MTRs) tabled by the Independent Communications Authority of South Africa (Icasa) this week. Speaking at the MyBroadband conference, in Midrand, on Tuesday,...
Vodacom CEO Shameel Joosub
Despite the loss of over R1-billion owing to the drastic mobile termination rate (MTRs) cuts, telecommunications giant Vodacom on Tuesday said its spend in South Africa during this current financial year would reach about R17-billion. This included Vodacom’s...
Telecommunications giant Telkom on Tuesday announced plans to take its long-term evolution (LTE) offerings to the next level by launching LTE-Advanced, offering speeds of more than 200 Mb/s by December. Speaking at the MyBroadband 2014 conference, in Midrand, Telkom...
More
 
 
Latest News
Information and communication technology services group Gijima on Tuesday announced that it would undertake a rights offer and restructure its existing trade receivables securitisation funding programme to ensure that it had sufficient working capital to underpin the...
Lynne Brown
Public Enterprises Minister Lynne Brown has urged that the best candidates be nominated to serve on the boards of State Owned Entities (SOEs). “Help me identify your brightest and our best,” said Minister Brown as she launched an initiative to obtain the best pool of...
The Square Kilometre Array (SKA) has brought art and science together in an exhibition celebrating ancient humanity’s appreciation of the night sky. In a first for the SKA Organisation, indigenous and local artists from South Africa and Australia have collaborated in...
More
 
 
Recent Research Reports
Road and Rail 2014: A review of South Africa's road and rail infrastructure (PDF report)
Creamer Media’s Road and Rail 2014 report examines South Africa’s road and rail transport system, with particular focus on the size and state of the country’s road and rail network, the funding and maintenance of these respective networks, and the push to move road...
Real Economy Year Book 2014 (PDF Report)
This edition drills down into the performance and outlook for a variety of sectors, including automotive, construction, electricity, transport, steel, water, coal, gold, iron-ore and platinum.
Real Economy Insight: Automotive 2014 (PDF Report)
This four-page brief covers key developments in the automotive industry over the past 12 months, including an overview of South Africa’s automotive market, trade figures, production and the policies influencing the sector.
Real Economy Insight: Construction 2014 (PDF Report)
This five-page brief covers key developments in the construction industry over the past 12 months. It provides an overview of the sector and includes details of employment in the sector, infrastructure and municipal spending, as well as insight into companies’...
Real Economy Insight: Electricity 2014 (PDF Report)
This five-page brief covers key developments in the electricity industry over the past 12 months, including details of State-owned power utility Eskom’s generation activities, funding and tariffs, independent power producers and prospects for the sector.
Real Economy Insight: Road and Rail 2014 (PDF Report)
This six-page brief covers key developments in the road and rail industries over the past 12 months, including details of South Africa’s road and rail network and prospects for both sectors.
 
 
 
 
 
This Week's Magazine
The South African new vehicle market is likely to reach around 630 000 units in 2014, down from the 650 000 units recorded in 2013, says Toyota South Africa Motors (TSAM) president and CEO Dr Johan van Zyl. Van Zyl is also president of the National Association of...
Efforts by the Kenya government to increase energy generation by 5 000 MW over the next three years received a major boost following the award of a $2-billion contract to build a coal power plant in Lamu.  Despite allegations of irregular tendering process, the...
Using crafty wordplay on a well-known Internet meme, brilliant South African-born US entrepreneur and businessperson Elon Musk announced that Tesla Motors would not initiate patent lawsuits against anyone who, in good faith, wanted to use its technology. Instead,...
August new vehicle sales declined by 1.4%, to 55 722 units, compared with the same month last year. Assisted by the car rental market, the South African new passenger car market, at 37 953 units, contracted by 1 047 units, or 2.7%, compared with August last year.
With South Africans facing the challenge of reducing electricity consumption, the biennial Eskom Energy Efficient Lighting Design Competition, to encourage the integration of energy efficient lighting in architectural, engineering and interior design, received a...
 
 
 
 
 
 
 
 
 
Alert Close
Embed Code Close
content
Research Reports Close
Research Reports are a product of the
Research Channel Africa. Reports can be bought individually or you can gain full access to all reports as part of a Research Channel Africa subscription.
Find Out More Buy Report
 
 
Close
Engineering News
Completely Re-Engineered
Experience it now. Click here
*website to launch in a few weeks