Group calls for cheaper telecoms

JOHANNESBURG – An influential South African business group has compiled proposals aimed at halving the cost of phone calls, which it said was holding back growth and investment in Africa’s biggest economy.

The South Africa Foundation, which represents the heads of the country’s top blue-chip companies, outlined 12 steps to lower call costs, which include forcing state-controlled Telkom to open lines to homes and scrap minimum call costs. “A lot of our members were frustrated (with high telecom costs) and we took this up to see how we could enhance the growth prospects in our country,” Michael Spicer, head of the foundation, told Reuters on the sidelines of a news conference.President Thabo Mbeki has blamed the high cost of phone calls and Internet access for inflating the cost of doing business and deterring potential investors, as well as for making communications too expensive for the poor.The South Africa Foundation presented its proposals in a report issued yesterday, a week before a telecoms conference at which the government and industry players hope to agree plans to tackle prices, which are higher than in many other emerging markets.The foundation said it had circulated the report among government ministers and influential industry players.A second national fixed-line operator (SNO) is set to launch in South Africa early next year but the report said the government must take more action to ensure its success.Compiled by research group Genesis, the report said the SNO must be allowed to access to phone lines into homes and offices at cost, rather than allowing Telkom to charge leasing fees.-Nampa-Reuters”A lot of our members were frustrated (with high telecom costs) and we took this up to see how we could enhance the growth prospects in our country,” Michael Spicer, head of the foundation, told Reuters on the sidelines of a news conference.President Thabo Mbeki has blamed the high cost of phone calls and Internet access for inflating the cost of doing business and deterring potential investors, as well as for making communications too expensive for the poor.The South Africa Foundation presented its proposals in a report issued yesterday, a week before a telecoms conference at which the government and industry players hope to agree plans to tackle prices, which are higher than in many other emerging markets.The foundation said it had circulated the report among government ministers and influential industry players.A second national fixed-line operator (SNO) is set to launch in South Africa early next year but the report said the government must take more action to ensure its success.Compiled by research group Genesis, the report said the SNO must be allowed to access to phone lines into homes and offices at cost, rather than allowing Telkom to charge leasing fees.-Nampa-Reuters