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Time to free up SA’s telecoms market

South Africa will need to become Internet savvy in order to compete globally, argues ADRIAAN GIE, CEO of Plusto.com, a business-to-business e-trading platform launched to the SA, Indian and Chinese markets last month.

It is time for Communications Minister Ivy Matsepe-Casaburri to change her stance on South Africa’s telecoms legislation.

While South Africa may be a leader in internet connectivity across Africa, the country lags behind countries such as Morocco, Egypt and Nigeria in terms of market competitiveness.

A severely controlled and conservative telecoms legislation that repels competition leads to other service providers being shut out of the market while Telkom holds South Africans at ransom by charging exorbitant connectivity fees.

For too long the Minister has stifled economic growth in South Africa by refusing private companies entry to the market. If government’s focus is on increasing trade and commerce between South Africa and the rest of the world, then this is not the way to go about it. In addition, the price of broadband in South Africa is exorbitant compared with international standards:



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Ericsson on evolution

Telecommunications giant Ericsson will offer live demonstrations of its offerings for the next generation in wireless broadband technology, Long Term Evolution (LTE) , at AfricaCom 2008 in Cape Town next week.

A wide selection of Ericsson’s solutions will be on show at AfricaCom 2008 in Cape Town on 18 and 19 November 2008., including its ‘Full Service Broadband’, Managed Services and Multimedia Solutions, together with live demonstrations of its HSPA, Long Term Evolution (LTE) and Convergent Charging options.

“The LTE demonstration is likely to generate quite a large amount of interest this year, in particular,” observes Aingharan Kanagaratnam, senior manager: Radio Access Sales Support, market unit sub-Saharan Africa, “since it will show what people will be using this technology for and the exciting possibilities that exist when bandwidth is no longer a limitation.”



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Telkom confirms sale of Vodacom

Telkom today confirmed the key terms of the sale of a 15% stake in Vodacom, South Africa’s leading mobile phone operator, to UK-based Vodafone Group and the intended listing of Vodacom on the JSE.

Telkom formally confirmed today that a 15% stake in Vodacom will be sold to Vodafone for R22.5bn in cash, less Vodacom’s attributable net debt of R1.55bn. Telkom will distribute 50% of the after tax proceeds from the sale transaction to Telkom shareholders by way of a special dividend. The dividend will be paid upon closing of the transaction, which is expected to take place in the first half of 2009.

The transaction is subject to approval by 75% of Telkom shareholders, the competition authorities and the Independent Communication Authority of SA (ICASA). Irrevocable undertakings in support of the transaction have already been received from Telkom’s largest shareholders, the South African Government and the Public Investment Corporation (PIC).



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New era in global ICT standards

The World Telecommunication Standardization Assembly closed in Johannesburg last week with decisions on a wide range of issues that will change the future direction of the information and communication technology (ICT) industry .
The role of information and communication technology (ICT) in climate change stands out among a range of key issues that the global telecommunications industry body has agreed to tackle in the coming years.

Members of the International Telecommunications Union, spanning the global ICT industry and administrations from across the world, asked for increased emphasis on key areas such as ICTs and climate change, the deployment of IPv6, accessibility to ICTs for persons with disabilities, conformance and interoperability testing, and encouraging academic participation in the ITU’s work.

Malcolm Johnson, Director of ITU’s Telecommunication Standardization Sector (ITU-T) said in his closing speech: “We have received a strong message from our members that ITU is, and will remain the world’s pre-eminent global telecommunication and ICT standards body. And we also hear very clearly that ITU should continue on its mission to connect the world, and that bridging the standardization gap – by increasing developing country participation in our work – is an essential prerequisite to achieve this goal.”



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AfricaCom Awards finalists named

The organisers of AfricaCom Awards 2008 have announced the finalists for the inaugural African telecommunications awards taking place on 18 November 2008 at the International Convention Centre, Cape Town.

South Africa’s new second Network operator, Neotel, has been nominated as a finalist in the New Entrant of the Year category for the AfricaCom Awards 2008. It joins several dozen other African telecommunications operators and suppliers who are vying for recognition.

The awards recognise the achievements and success within the African communications market during the last twelve months.

According to the organisers, the quality and quantity of entries was exceptional and sets the standard for the African telecommunications industry going into 2009.

The finalists are:



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The Big Change is a business strategy blog and newsletter published by Arthur Goldstuck, managing director of World Wide Worx, a leading technology research organisation based in Johannesburg, South Africa.

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