PRESIDENT Jacob Zuma may have promised lower telecoms costs, but his recent state of the nation address gave little insight into how this would be achieved. Zuma promised reductions in broadband, cellphone, landline and public phone rates. However, he failed to provide any insight into government's plans and the role major entities, such as Sentech, Broadband Infraco and the State IT Agency (SITA), would play.
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JACOB ZUMA |
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"The South African public can look forward to an even further reduction of broadband, cellphone, landline and public phone rates. We will work to increase broadband speed and ensure a high standard of Internet service, in line with international norms," Zuma read from his prepared speech.
While the president's mention of ICT in his speech was seen as a good step, industry players note that omissions reveal major questions plaguing the industry.
Frost & Sullivan ICT industry analyst Spiwe Chireka says South Africans have been hearing about government wanting to lower the cost of communication for at least five years, and - with a few exceptions - competition in the marketplace has been the main driver behind lower costs. "The extent to which government is directly involved... has been minimal," she notes.
Motse Mfuleni, secretary general of the Black IT Forum, says the president's failure to mention Sentech and SITA reveals gaps in government policies on service delivery and unequal approaches to underperforming units.
"Companies such as Sentech and SITA are key enablers for service delivery. Government must make reference to ICT as an enabler of its focus areas and acknowledge that it forms part of its priority areas," says Mfuleni.
Analyst at Africa Analysis Dobek Pater notes that the address didn't say anything new, and there was no clarification on the role of the troubled Sentech and the part Broadband Infraco would play in service delivery.