National Council of Provinces on the Broadband Infraco Bill
20 November 2007
One of the most important infrastructure systems in a modern economy is that
of telecommunications and more particularly the broadband capacity of that
system. Broadband is the capacity to move very large amounts of information
very quickly. This essentially requires a range of information and
communication technologies. Fiber optic cables are particularly important as a
means of transmitting information and these cable systems form the basic spine
of broadband.
This broadband capacity is so strategic to our economy that the State is
intervening through the formation of Broadband Infraco. The intervention seeks
to address the high cost of broadband in South Africa, by making infrastructure
in the national backbone and international connectivity available at cost
related prices.
The high cost of broadband in this country, and the limited access of this
technology to all South Africans, hampers our country's participation in the
global economy. Telecommunications and internet connection charges have been
identified as key barriers to doing business in South Africa, and attracting
more investment into the country.
If nothing is done about this, our country will get left behind, and we may
miss out on key investment opportunities which could further accelerate
economic growth, and create more employment opportunities for our people. There
has been criticism, perhaps due to lack of understanding that government wants
to nationalise the telecommunications industry. This could not be further from
the truth.
Government's intention is not to operate Infraco on a long-term basis. Once
we are satisfied that long-distance tariffs have normalised at internationally
competitive levels government will be able to reconsider the precise role it
should play in the industry. What we are addressing an obvious market failure,
a task which we cannot guarantee can be undertaken by the private sector
alone.
Broadband Infraco will provide telecommunications network infrastructure
across South Africa, and other organs of State such as Sentech and the
Universal Services and Access Agency of South Africa (Usaasa) will tap into
this infrastructure to provide services to all areas, including the rural parts
of the country, as per their mandate. Throughout the Parliamentary bill
process, the Department has assured all stakeholders of its commitment to
assist these entities through Infraco.
The imminent 2010 Federation International Football Association (Fifa) World
Cup is among several key national projects which require large amounts of
broadband capacity, and it is incumbent upon the State to act speedily to
ensure that this is available, so that the growth and development of our
country is not compromised.
Bridging the gap between the first and second economy remains on the top of
our agenda, and in this regard, telecommunications will play a key role.
Issued by: Department of Public Enterprises
20 November 2007
Source: Department of Public Enterprises (http://www.dpe.gov.za)
