Strong action recommended for telecommunications reform

The report from the colloquium working group also takes a strong line on regulatory reforms.

Presented by chairperson Mandla Khuzwayo, it touches on Telkom`s service provision, universal access, underserviced area licensees (USALs), and the need for effective competition and regulation.

Pricing tactics proposed include lowering of wholesale pricing and interconnection charges. Telkom`s obligations should include installing lines on request, and disconnecting lines should be banned, Khuzwayo said.

The report recommends that Telkom roll out infrastructure to provide universal service and that it be subsidised for uneconomical lines, but that it cannot determine what uneconomical means.

The report also argues that "by 2010 there should be a telephone within a 500 metre radius and each household should have access to telephony".

The working group further recommended that the two-year contractual agreement between mobile service providers and consumers be reviewed to encourage take-up of opportunities presented by number portability.

The group is also of the view that prepaid customers` funds are used to subsidise contract customers, despite paying upfront in great numbers.

Delegates raised questions regarding the credentials of the working group members, but DOC Deputy Minister Roy Padayachie said he was confident the group had applied its mind to recommendations.

"There must be no holy cows" in lowering telecoms prices," he said. "Why should it be unthinkable that certain local calls should be free? Why should it be unthinkable that there should be no monthly rental on the telephone?"

Stakeholders can present written reports to the DOC within the next two weeks. Speaking to ITWeb, Padayachie said Ministerial declarations would be made within a month. "There will not be another colloquium," he said. "It`s time to take action."