It feels as if a tsunami has hit the South African communications industry with one clean sweep of a tidal wave
It feels as if a tsunami has hit the South African communications industry with one clean sweep of a tidal wave moving obstacles out of the way and creating a new environment – and all that in a short space of time.
Politicians and analysts have greeted President Jacob Zuma's axing of Siphiwe Nyanda as communications minister and his expulsion from cabinet with surprise but as good news for the ailing sector.
While changes in cabinet have been on the cards for some time, it was not expected that Zuma would axe Nyanda as he is a close political ally. Nyanda has been dogged by controversy ever since taking office as minister, with allegations that he benefited from dodgy tenders. His dismissal of director-general Mamodupi Mohlala and interference in the digital migration process had the communications industry up in arms. With the huge public outcry President Zuma had little other choice than to part with his strong political ally – after all, payback time cannot last forever.
The appointment of Radhaskrishna "Roy" Padayachie is considered good news for the ailing Department of Communications (DOC) as Padayachie is known to the ICT sector – he served as deputy communications minister from 2004 until 2009, when he took up the position of deputy minister of public service and administration.
During the past year the DOC has been a disaster and through interference by Nyanda became totally paralysed. Actions by the minister almost shipwrecked the television digital migration initiative and the firing of the DG and the turmoil in Sentech added more fuel to the destruction of the communications sector. A huge job awaits Padayachie but judging from his past performance as deputy minister under the late Ivy Matsepe-Casaburri I believe that he is capable of delivering what is expected from a communications minister. He led the Pricing Colloquium in 2005 that ultimately led to the liberalisation of the market as it is today.
Dina Pule, Nyanda’s deputy, has also been replaced. Former parliamentary house chairman Obed Bapela has been appointed deputy minister of communications. Bapela is well known for his criticism earlier this year of MPs, following a report that revealed the majority of parliamentary workers are computer-illiterate.
Talking about pricing, the latest announcement on call termination tariffs and the publication of the new policy in the Government Gazette, although long overdue, took most of us by surprise. The Independent Communications Authority of South Africa (ICASA) has amended its initial proposals on cost-oriented rates to ensure that these regulations achieve the goal of fostering competition as well as maintaining employment and investment in the ICT sector. Over a period of time call termination rates will be dramatically reduced, paving the way to more affordable communication rates.
Telkom’s expected entry into the mobile market caught its rivals by surprise and saw a quick response from Vodacom. It seems that a price war is looming.
Announcing simple and affordable products and services, Telkom Mobile's 8ta executives claimed their services will be regarded in South Africa as the one that will “get people to talk more”.
Managing executive of Telkom Mobile Amith Maharaj told EngineerIT, “we will provide the platform for South Africans to communicate more. I’m not exaggerating when I say that this is the start of a new era in mobile phone communication in South Africa. Consumers will at last have a real choice.”
He promised that 8ta products would offer more value than any other network provider. For the first time in South Africa, all prepaid customers will benefit from free talk time to any network every time they receive calls from a mobile phone – 1 free second of airtime for every three seconds of calls received. This benefit is available all day, every day. It appears that Telkom Mobile has been closely watching the insurance industry, which offers pay back around every corner!
Further, calls from 8ta to fixed line will cost 60% less than typical market rates for similar calls, and there will be a flat rate of R2,50 per minute to over 100 international destinations. Additionally, when you send 5 SMSs in a day, 8ta will give you 50 bonus SMSs at no extra cost to use that same day.
8ta has constructed 800 base stations across the country, and plans to construct a further 3200 base stations over time to improve coverage and connectivity. The services have been built on an end-to-end all-IP 2G and 3G network, which is easily upgradeable to LTE (4G).
As the success of the World Cup still rings in our ears it appears that the communications sector has taken heed of the “Lead SA” campaign of Radio 702 and major newspapers. Let’s hope it doesn't just stay here and that we will get more pleasant surprises in 2011.
- Hans vd Groenendaal, EngineerIT
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