Publications
Partners
Johannesburg - South Africa’s biggest mobile network by subscribers, Vodacom [JSE:VOD], has criticised government’s ICT policy white paper, which was released to the public late last year.
In October last year, Cabinet approved SA's ICT Policy White Paper which seeks to boost national broadband usage by establishing a single public-private sector owned wireless open access network (WOAN).
The white paper further seeks to provide high demand spectrum to this WOAN network and shift away from networks having exclusive rights over this resource.
Subsequently, the white paper has faced criticism from the likes of opposition party the Democratic Alliance and even telecoms service provider Telkom.
The DA’s telecoms shadow minister, Marian Shinn, last year said that the policy is unconstitutional as networks have to “surrender” infrastructure and radio wireless spectrum.
Meanwhile, Telkom cautiously welcomed the white paper but warned that parts of it are “potentially dangerous”, as the company also highlighted concerns over handing back spectrum
And Vodacom - which has over 36 million subscribers in South Africa - has also adopted a diplomatic approach towards the white paper by agreeing with its objectives but questioning its proposed methodology.
“We support the objectives of the White Paper to make broadband more accessible and affordable for all. However, as it now stands, we do not believe the White Paper will achieve these objectives,” said Vodacom in a trading update for the quarter ended December 31 2016.
READ: Smartphone boom brings data joy to Vodacom earnings
“The Group believes the White Paper, as it currently stands, contains a number of policy elements and interventions which are unclear and require more detail.
“For the White Paper to have legal effect, a number of new laws would need to be promulgated and/or existing laws amended. Consultation with all stakeholders would be required to give effect to these changes,” said the company.
Vodacom also said in its earningss update that “initial exploratory meetings for implementation of the policy paper between the Minister [Siyabonga Cwele] and industry were held during November and December”.
The objective of this meeting was to find a “workable solution to meet South Africa's social and economic objectives”, the company added.
The mobile network further said that Icasa’s Invitation to Apply (ITA) for high demand spectrum last year is also a “polar opposite approach to the White Paper”.
In July last year, Icasa controversially invited applicants to apply for 700MHz, 800MHz and 2.6GHz spectrum licences, which will boost the rollout of faster LTE broadband.
READ: Cwele wins spectrum court battle against Icasa
But Telecommunications and Postal Services Minister Siyabonga Cwele fought the auction on grounds that government’s policy regarding spectrum, at that stage, had not yet been finalised and that the sale risked only benefitting big companies with deep pockets.
Cwele's bid to interdict and set aside a planned spectrum auction for high-speed broadband in South Africa was then upheld by the North Gauteng High Court in Tshwane in September 2016.
The court explained that if Icasa's spectrum auction had to go ahead, the process could put businesses at risk.
Greater government control?
Late last month, analysts joined industry in posing questions about the ICT policy white paper.
READ: Why SA's new ICT policy could break the industry
Dobek Pater, who is a telecoms analyst from Africa Analysis, said at a briefing hosted by the Free Market Foundation that through the ICT policy, government departments could also wield more power from regulatory and oversight point of view.
He explained that the policy states that all statutory bodies, such as Icasa, will either be dissolved or replaced with an ‘Economic Regulator’. Government’s scope of oversight and its role are expected to be significantly expanded through the establishment of the regulator.
“ICT bodies that government intends to restructure are supposed to be independent to avoid undue political influence. The policy tries to bring more power to government,” he added.
Read Fin24's top stories trending on Twitter:
