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Johannesburg - Telecommunications Minister Siyabonga Cwele has defended a controversial National Integrated ICT Policy White Paper, which has called on mobile networks to give up key spectrum to a single, countrywide wireless network.
Cwele, in a speech addressing the GovTech conference in Johannesburg on Monday, said that government does not want to kill the industry, but rather wants to make it accessible to more entrepreneurs who could bring greater competition to the market.
READ: Cabinet finally approves SA ICT policy
Cwele said that mobile networks should look to the example of fibre to the home networks which have been springing up across the country's cities.
Fibre networks in these areas, from the likes of Vumatel, have adopted an open access model that enables service providers to compete for customers on the same network.
“It should be noted that open access agreements have rarely been reached voluntarily, as firms prefer to reach commercial arrangements that are not necessarily non-discriminatory or transparent," said Cwele.
"Put another way, most open access policies have been the result of direct or indirect public intervention,” he added.
Cwele pointed out that even mobile operators themselves have invested in local open access fibre networks.
'Market bullying a no-no'
In a separate speech on Monday, he added that the ICT White Paper recognised the role that robust and fair competition can have in facilitating universal service and access by, among others, addressing market inefficiencies, promoting investment in the ICT sector and facilitating innovation.
READ: Department puts ICT White Paper in context
"Collusion by the bigger role players to restrict the market potential of the SMMEs will continue to be frowned upon by government because either way you may want to justify collusion the outcome is anti-competitive behaviour and this is explicitly corruption" Cwele said.
"Market bullying by the top players at the expense of others is a complete no-no and the involvement of the Competition Commission in the GovTech programme is a welcome relief and the message we believe will be succinct, pinpointed and strong, without fear or favour," he added.
Criticism of ICT white paper
Government hopes that its proposal of a single, national Wireless Open Access Network (WOAN) will allow for a more level playing field and boost internet access across the country for all South Africans.
But this policy proposal has come under fire for seeking to provide high demand radio spectrum to this WOAN network and shift away from networks having exclusive rights over this resource. Spectrum is key to providing faster mobile broadband services.
READ: SA’s ICT white paper ‘potentially dangerous’ - Telkom
Opposition party the DA has already slammed the policy and said it risks killing MTN and Vodacom as these networks will have to surrender their spectrum rights.
Meanwhile, Telkom responded to the policy with mixed reactions, saying that while the policy was positive, it posed risks.
“The fundamental problem is you have spent millions on the network and then have to return it. We need industry engagement on this issue,” Telkom’s Chief Commercial Officer, Dr Brian Armstrong, said recently at a technology event in Johannesburg.
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