SA unveils plans to open telecoms sector

JOHANNESBURG – South Africa will unbundle the “local loop” as it dismantles state-owned Telkom’s fixed-line monopoly to bring down high telecom costs, the department of communications said.

As part of a wide-ranging plan to improve communications in Africa’s biggest economy, the government also plans to use state-owned signal distributor Sentech to build an extensive wireless broadband network, and to offer voice services. Minister of Communications Ivy Matsepe-Casaburri said in a speech issued late on Thursday she would announce a timeframe to allow all licensed networks to interconnect with the so-called “last mile” of telecom links into homes and offices.She said South Africa would make sure that all operators had access to an undersea cable currently controlled by Telkom on a cost basis instead of at inflated prices, on the basis that the cable is an “essential facility”.And South Africa was working to make sure a plan for a cable linking the east of Africa to the rest of the world did not carry the same restrictions as this existing SAT-3 cable along the west of the continent.The government has said high tariffs for phone calls and Internet access are impeding the roll-out of communications to the poor and deterring investment.But some analysts and consumer groups say it has been slow to dismantle Telkom’s monopoly.After long delays, a second national fixed line operator was awarded a licence at the end of last year, but has yet to launch.Telkom has reported bumper profits in recent years after it slashed costs but continued to enjoy a virtual monopoly on fixed-line voice and Internet services.- Nampa-ReutersMinister of Communications Ivy Matsepe-Casaburri said in a speech issued late on Thursday she would announce a timeframe to allow all licensed networks to interconnect with the so-called “last mile” of telecom links into homes and offices.She said South Africa would make sure that all operators had access to an undersea cable currently controlled by Telkom on a cost basis instead of at inflated prices, on the basis that the cable is an “essential facility”.And South Africa was working to make sure a plan for a cable linking the east of Africa to the rest of the world did not carry the same restrictions as this existing SAT-3 cable along the west of the continent.The government has said high tariffs for phone calls and Internet access are impeding the roll-out of communications to the poor and deterring investment.But some analysts and consumer groups say it has been slow to dismantle Telkom’s monopoly.After long delays, a second national fixed line operator was awarded a licence at the end of last year, but has yet to launch.Telkom has reported bumper profits in recent years after it slashed costs but continued to enjoy a virtual monopoly on fixed-line voice and Internet services.- Nampa-Reuters