06 September, 2011 13:56

Gareth Vorster

The economics of broadband access for all

While the South African government has an ambitious target of ensuring broadband access to all by 2020, the funding of that initiative remains unclear.

Image: Gallo/Thinkstock

Addressing a panel discussion at the Southern Africa Telecommunication Networks and Applications Conference (SATNAC) in East London on Tuesday, Dr Andrew Barendse, group executive: regulatory affairs at telecommunications group Telkom, questioned whether 2020 was an achievable target given the current lack of cost clarity.

In July the Department of Communications (DoC) held a workshop with 30 top ICT companies and agreed that by 2020 the industry must achieve 100% broadband penetration and 100% access for all.

Barendse highlighted the universal service fund (USF), set aside for ICT development and infrastructure projects, as containing approximately one billion rand, "but we don't know how it relates to broadband," he stressed.

When questioned what the most appropriate form of financial support the South African government should provide, Barendse said: "We don't know that, it's not clear." He added that the minister of communications "mentioned" 80 billion rand for the roll-out of its 'broadband for all initiative'.

According to Barendse, Telkom was the single biggest contributor to the USF fund of just under one billion rand, contributing just more than half of that value.

However, the Telkom regulatory expert said that the industry did not have "the key and combination number" to unlock its value. He said that the amount of money currently required for universal access far exceeded the current funds available.

Dr Angus Hay, chief technology officer for Neotel, said: "The challenge we have is to unlock that vault, it's not a big enough vault, but it's not an excuse not to unlock that vault.

Barendse said that government's policy was evolving all the time, despite not yet even effecting the broadband policy. He said the journey started at 256Kbps, but then the minister of communications intimated 3Mbps. He said it was not yet clear where South Africa would end up in terms of speed.

On Monday, Deputy Communications Minister Kopeng Obed Bapela highlighted a need for a minimum of 5Mbps for broadband speed, "to move the country forward."

He said that 250Kbps was no longer good enough.

"In today's economic environment companies need to collaborate and partner in order to maximise the economic scale. This approach will help companies together with Government to rollout broadband infrastructure in poor communities whereby a win-win situation is created. This might also help in human capital investment through re-skilling of our personnel and create new job creation," Bapela said.

Head of Regulatory Affairs at mobile operator Cell C, Mothibi Ramusi, called for an integrated plan by government.

"What is encouraging, is there is a political will. Integration of policy frameworks is key for providers," he said.

Ramusi highlighted the need for an integrated national plan. "It's something I think we can achieve - national broadband for all," he said.

He noted that it was important for government to "redefine itself" saying that it could not play the role of both player and referee.

"It causes conflict. Get a national plan, and redefine government in terms of ICT," he said.

  • Gareth Vorster was hosted by telecommunications group, Telkom to attend the conference in East London.

     


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