MOBILE companies are likely to come under pressure from Communications Minister Siphiwe Nyanda to slash interconnect fees as he pushes to lower the cost of communication in SA.
Nyanda said in an interview on Friday that his priority during his term of office would be to drive down the costs of communication to provide “cheap, affordable and quality” telecommunications.
He had set his sights on unusually high interconnect fees.
The minister has already engaged the companies on fees they charge to connect mobile users calling opposition networks.
“If we can sort out the pricing by mutual agreement, all the better,” Nyanda said.
“If companies can act in such a way that there is no need for regulation, that would be first prize.” But Nyanda said the process had to be managed carefully to avoid perceptions that the government was colluding with telecoms companies.
“If, for example, we say, cut prices by 5c, and they do, some people will feel the difference. But other people will ask, on what basis is the cut made? What does it cost the telecommunication companies to administer calls?” he said.
An open, transparent process was needed for “viable” interconnect fees to be agreed on and termination costs to be brought down as quickly as possible.
Nyanda said he also wanted more investment in communications infrastructure — mobile, fixed-line, internet and satellite — particularly in rural areas. “Information is power, and the priority of government is the development of disadvantaged communities,” he said. Access to communication was an empowering tool.
If necessary, the government would look at giving companies incentives to invest in inaccessible areas, and could also use public- sector institutions such as Sentech to provide infrastructure investment. “If you incentivise the private sector, you are in effect subsidising the people who will receive the service,” he said.
Turning to the national broadcaster, Nyanda said a ministerial task team appointed to find a turnaround strategy for the SABC had given him its preliminary findings, which he was now studying.
“There’s a lot the SABC can save money on. I don’t want to pre- empt the recommendations, but there is a lot of wastage in the SABC,” he said.
The same team would also look at Sentech, which distributes TV signals for the SABC. Though some of its businesses had failed, and should be sold or abandoned, Nyanda said Sentech provided a useful service, and could potentially provide communications infrastructure and wireless broadband to rural areas.
Another priority for his term in office would be to ensure a smooth transition from analogue to digital television, a process called digital migration, which all countries had to complete by 2015.
This would this free up spectrum for broadband services and also help generate employment as more channels would be introduced, creating a need for more content.
Nyanda said the government was working on policy to encourage more local content as a single TV production could employ 60 people. It would look at the commissioning system by which broadcasters retained copyright for work produced by independent companies. “That is why you have to be concerned about what is happening at the SABC, where independent producers are feeling the pinch. Over the next few years, we will need more content.”
He promised to strengthen state enterprises such as the SABC and Sentech under his authority, as well as the Independent Communications Authority of SA.
newmarchj@bdfm.co.za