If the DA was in charge of SA tech
The Democratic Alliance says that it would break down the monopolies within the ICT sector, and promote competition if it were elected to power in 2014.
The political party said there is an “inherent conflict of interest between the state’s role as a competitive player in the market (through its enterprises, Broadband Infraco and Sentech, as well as its majority share in Telkom) and its role as a policymaker”.
“At the centre of the DA’s economic philosophy is the conviction that customers are best served by competitive industries, the group said in its ICT Policy document.
In the South African context, the DA said that competition in the communications sector can be aided by:
- A structural separation of the infrastructure backbone owned by Telkom and the services offered by this company (as per the recommendation of the Competition Commission);
- The immediate devolvement of the government’s shareholding in Telkom;
- Immediate opening up of state-owned infrastructure facilities so they can be leased to competitors to provide services over the last mile between exchanges and consumers’ premises;
- Making more spectrum available for wireless internet services; and
- More streamlined and efficient licensing processes that make it easier to access the market space.
Telkom
The Government currently has a 39.8% direct ownership of Telkom, while The Public Investment Corporation (PIC), which is wholly owned by the South African government, has a 10.9% ownership in the telco.
The DA believes that the state should resolve the inherent conflicts between its role in ICT policy development and regulation, and its interest as an investor in a major telecommunications market player, by separating the wholesale and retail operations of Telkom into two separate companies, and selling its shares in these.
Broadband Infraco
The DA said it does not believe that the state should be a market player in communication
infrastructure provision, a mandate currently performed through state-owned enterprise Broadband Infraco.
“Broadband Infraco should be fully privatised as part of the overall effort to increase competition in the ICT industry,” the political party said.
“We believe that public money will be more effectively spent if it is used to incentivise private sector provision of communications infrastructure, through market-based mechanisms and to fund developmental interventions where such interventions are required as a result of low penetration and poorly developed competitive markets,” it said.
Sentech
“When appropriate, Sentech will be privatised to allow market players to manage, maintain and expand broadcast infrastructure, the DA said of the the state owned signal distributor for the South African broadcasting sector.
SABC
On the SABC, The DA said it would hold public hearings to determine whether South Africa needs a public broadcaster and, if so, what form should it take and how should it be financed.
“We contend that the SABC should be broken up into various commercial entities and sold to the highest bidder – with the Icasa and the Competition Commission overseeing the process to ensure a diversity of ownership and voices.”
Public broadcasting needs should be met through stipulations in license requirements or public procurement of advertising time/space on privately owned and community broadcasters, the DA contended.
It said that the Government Communication Information Service (GCIS) can continue to support community radio and stations as broadcast platforms by paying for a percentage of their broadcasting time to disseminate information from government departments and entities, while leaving the stations free to develop their own voice and content applicable to their audiences.
“The quality of ICT infrastructure and the affordability of services has also become a key determinant in the competitiveness of an economy and its ability to attract investment. As such, we believe that
South Africa’s ICT strategy should be a core part of the government’s investment in economic infrastructure. Government’s role should be confined to regulating and incentivising investment and the development of the sector. It should not be operational in either the wholesale or retail space,” the DA said.
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