Home

Parliament holds hearings on Telecommunications and Postal Services

Telecommunications
Reading Time: 2 minutes

Parliament’s Telecommunications and Postal Services committee has heard that lack of policy implementation and institutional capacity has contributed to the high cost of telecommunication in the country. The committee is conducting public on the Electronic Communications Amendment Bill which could see the reduction of communications costs.

The cost of communication in the country is said to be higher compared to other African countries. As a result, there has been an outcry by South Africans for the mobile operators to reduce cost of communication.

Executive Director of Research ICT Africa, Professor Alison Gillwald says the high costs must be linked with investment done by cellphone operators.

“Yes, these prices are high. Yes, these prices could undoubtedly come down, but one has to understand the complexity of what these prices mean. In Nigeria for example, you have prices reduced. At the same time there has been no investments in that market for three years other than investments made by MTN on spectrum which is for sim penalty.”

Professor Gillwald partially blames Icasa for the high costs of communication.

“Icasa has to regulate wholesale. If wholesale pricing has been effectively regulated, a number of these very high risk interventions would not have been required. We could have a number of players, a number of service providers competing through going cost-based regulated wholesale process that has to be balanced with investment.”

Members of the Committee questioned Icasa’s role on these high communication cost.

DA Spokesperson on Telecommunications and Postal Services Marian Shinn said that if Icasa was empowered properly then there might not be a need for the amendment.

“Would we be in a position where we have more competition… would this amendment be if we just actually empower Icasa, properly resource it, would we be able to implement what this bill sets out to do?”

ANC MP Julie Killian also shares these sentiments.

“One gigabyte, which is really the higher gigabyte product. So does it mean that operators are effectively competing for the top group and not looking at affordability for poorer communities that can’t afford to buy bulk?”

The hearings are continuing throughout the week.

Network operators are expected to present later in the week.

Author

MOST READ