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Bill Melody, a telecoms policy expert of
vast international experience who is currently a visiting professor at the
LINK Centre, Wits University, contends that reform in telecoms begins with
liberalisation. The formal debate that followed his presentatation – “Is
Liberalisation the Answer?” – appeared to challenge this view. But the
debate itself really did not. Debaters Brian Longwe of AfrISPA and Alison
Gillwald of the LINK Centre, Wits University, differed on approach and
detail, rather than on substantive issues.
The conference
plumped squarely not for total deregulation but for reregulation – the
position argued by Gillwald, a close associate of Melody – which took 61.3%
of the vote.
Melody argues
that inadequate regulation is the limiting factor constraining development
of the e-economy and information societies. “The speed of regulatory reform
must increase and be directed at stimulating investment in the
infrastructure foundation for information societies,” he says.
While many
African states have been slow to reform, Melody cites Botswana as “a world
model for credible regulation.”
Not so South
Africa. Melody singles out the conference’s host country as one of the
backward in this regard, with Telkom monopoly power, “confidential”
politics, and restrictions on information society development. He quickly
adds, though, that SA is not alone in this. He is highly critical of the
fact that South Africa’s four major networks – Telkom, Transtel, Sentech and
Eskom – can interconnect but are not operationally integrated to deliver
public services, because, in terms of current legislation, this would be
illegal.
Linked, they
would jointly cover almost the whole country. “This is a fundamental issue
and has to be solved.”
Countries with
monopoly telcos must make a commitment to empowering regulators to implement
policies, Melody argues. Again using SA as an example, he notes that ICASA –
the Independent Communications Authority of South Africa – is not truly
independent, nor does it have any real authority to impose its will.
The over-riding
challenge for Africa, he says, is “to create regulation that leads, rather
than lags, technological and market developments, providing a catalyst for
investment and growth in e-economies.” ISPs and other providers of
value-added services must be able to use the network as efficiently as
possible. In this regard he strongly recommends the separation of telecoms
facilities and services, comparing this with what happened in the computer
industry. Since software was unbundled from hardware, the software market
has grown very much faster and now dwarfs the hardware market.
INTERVIEW
Speaking to
Acacia WebTimes after his presentation, Melody expressed puzzlement at the
South African government’s attitude to its own stated objectives.
Sudden reversals
of policy, ignoring informed advice and backtracking on, for instance, the
Telkom IPO and SNO processes have not only destroyed value of publicly owned
assets, but have eroded the government’s credibility internationally and at
home, he contends.
“Its universal
service policy has accomplished very little,” he says. "Access has gone up
due to mobile and to a limited degree payphones and telecentres. Fixed line
penetration, at the core of the exclusivity model to deliver universal
service, rate has actually gone down over the past three years as people are
disconnecting from a service they can no longer afford. This is evidence of
policy failure. Why is no-one in government asking why?"
Melody
acknowledges his frustration that informed advice based on long experience
so often falls on deaf ears, but is convinced the weight of initiatives such
as LINK, which conducts research that stimulates and informs public debate,
will eventually win through. Through Melody’s contacts, LINK – which
receives which receives little formal state support or any from the
incumbent operator, Telkom, as do similar research bodies in other parts of
the world.
It does get a
small sponsorship from the Department of Communications. LINK has become one
of four international research parties contributing to LIRNE's World
Dialogue on Regulation for Network Economies.
See also:
Investment needed in networks - Melody
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