Source: Ministry of Communications
Title: Matsepe-Casaburri: Convergence Colloquium
ADDRESS BY THE MINISTER OF COMMUNICATIONS, DR IVY MATSEPE-CASABURRI, AT THE NATIONAL COLLOQUIUM ON CONVERGENCE POLICY, Johannesburg, 15 July 2003
Programme Director
Members of Parliament of the Portfolio Committee of Communications
Distinguished International Guests from Malaysia,
Mr Ki Hun Paek from South Korea, Mr Colin Lyons from Australia
Representatives from Portfolio Organisations and other institutes
Representatives from Business
Government Officials
Ladies and Gentlemen:
Introduction
In the third year of the 21st century we have entered a world reality very different from the one that our forefathers knew, a world in which modern technologies are changing the way we work, the way we think and the way in which we live our lives. This new reality gives us a glimpse into what the future may hold. It offers new possibilities for economic and societal change and for the transformation of the physical landscape we inhabit. Most importantly, it creates the very real possibility of us meeting our developmental objectives and gives us the tools we need to make a radical difference in the quality of our lives and the livelihoods of millions of the world's people.
In an interesting book called Netocracy: the new power elite and life after capitalism, Alexander Bard and Jan Soderqvist make the following point:
"Everything suggests that we are now at the introductory stage of a phase in which information, paradoxically, is beginning to lose its prestige in the general consciousness. It is so easily accessible that it has become a logistical problem and an environmental hazard. If you conduct a search on the net and get four million hits, what are you supposed to do with all the information? There will come a day when the enthusiastic cheerleaders realise that they have been fooled. What is desirable is what is difficult to attain: an overview, context, and knowledge. That is where the power lies."
"The mobility of the netocracy - first virtual, but increasingly physical - is leaving deep traces on society and culture. The idea of a home and a place of residence is changing beyond recognition. The higher your status, the greater your degree of mobility. The function of the permanent residence to act as an identifying factor is disappearing and being transferred to the net, to the virtual equivalent of the home: the homepage. A homepage is what genuine netocrats can accept as their fixed point in existence. As long as it will be regularly updated."
Are we really at the introductory phase of an information age whose rapid rise will be followed by a decline, where we become over-saturated so to speak, with information? How do we attain and retain "an overview, context, knowledge", the fundamentals necessary to give direction to communities, nations and continents and to the world? Can this discussion on the convergence of technologies bring us closer not only to an integration of sectors, but also to ourselves as people who need other people in this world? How ought convergence to facilitate collective advancement so that we arrive at a greater good for humanity? In a country that was ravaged and divided by apartheid rule, where the majority were forced to be migrant labourers or removed to places that were not their homes, what might it mean to be a truly networked nation bound by a homepage? How indeed do we bridge the divide between urban and rural areas, between black and white, between men and women, between those who have access to information at their fingertips and between those who do not? Can convergence help us to build a better country and a better world?
There are also those occupying vast tracts of the developing world, who despite the advent of modern technology, have been marginalised from these supposedly global technological advances, those whose plight is still lack of information, rather than an abundance of it.
The question posed by William E Kennard is:
"Does this gap in technology matter? You bet it does. How can you look for a job without a phone? How can an employer call you for an interview? How can you demonstrate that you have the skills to compete if you don't know which side of a diskette goes in first?"
Certainly, even with these pertinent questions at hand, the choice is not between every technology or none. Rather, we must ensure that we do not get left behind in this global reality and that we adapt accordingly so as to meet the challenges of new technologies and of new times.
Under these circumstances where the gap between the haves and have-nots need to be bridged and in fact eliminated, how can we effectively use the advance that the convergence of technologies implies to attain universal service and to expedite social and economic development and cultural integration?
If until this point in our history, globalisation has largely meant a widening of the gap between rich and poor, between the developed nations and the underdeveloped, then it is in this context that we must also speak about bridging the digital divide and continue to engage in e-readiness studies to ascertain our position in relation to the rest of the world. The argument can also be made that globalisation presents us with real developmental opportunities and that we need to use these opportunities to successfully manoeuvre a favourable position for our people and ourselves in this new world.
This becomes even more crucial for our development as a country and also as people of the African continent conscious of the need to end poverty and underdevelopment and to fast track the attainment of our developmental goals through processes of modernisation and especially through the use of information and communications technology. This is why the challenge of convergence has been on our agenda for over two years.
In my Budget Speech of May 2001, I spoke about the challenges posed by the convergence of technologies and digitisation and I pointed out that capacity of the regulator would need to be strengthened, since "The convergence of technologies and new complexities of the ICT sector pose new challenges for the authority." Later that same year, at the second reading in the National Assembly of the Telecommunications Amendment Bill, I spoke about the need "to balance the progressive possibilities of convergence of technologies with the unintended consequences that can widen the digital divide if not managed properly." I showed how Sentech had taken on this challenge in this "era of convergence" and had successfully positioned itself "to play a significant role in Africa as a carrier of carriers." Last year in my Budget Speech of May 2002, I spoke about the importance of having a Convergence Bill, that this would deal "with the convergence of broadcasting, telecommunications, information technologies and new media" and that the need exists to clarify the role of both the policy maker and the regulator in this regard. It was finally in May 2003 that we could announce this Convergence Colloquium in order to bring together stakeholders from a range of sectors and organisations and international speakers in order to discuss this important matter, what should be done to facilitate convergence and how it affects all our lives.
This discussion is even timelier because we have all come to realise that the use of ICTs is not a luxury but a necessity. People must be made conscious of the possibilities, which is one of the reasons we are hosting such an event. Our people have a right to expect that such technological changes ought to bring significant improvements to their quality of life.
This is why as government we will continue to advance the objective of universal service to enable ordinary people to have access not only to traditional forms of communications but also the convenience that modern information communications technology can bring to the world.
These include services that will create a flourishing information society such as the Internet, tele-medicine, tele-agriculture, tele-education, e-commerce, e-business, e-government and other convenience measures that will improve the quality of life of our people while contributing to economic growth.
There can be no doubt that electronic commerce ("e-commerce") has revolutionised approaches to cross-border commercial transactions and that there is a global agenda for change that require our attention. Among these, our concerns must be on:
* Rules on goods, services and intellectual property;
* Classification of e-commerce "cyberproducts";
* Implications for developing countries;
* Security and privacy;
* Content regulation, taxation, and other domestic regulations.
One should also add that the growth of e-commerce has redefined traditional business methods. In 1991, there were less than 5 million Internet users, while currently there are over 300 million users. With this growth, there are numerous opportunities for both developed and developing countries as e-commerce creates a "friction-less" economy in which transaction costs and barriers to entry and contestability are minimal. The growth of e-commerce presents an opportunity for developing countries to compete directly in high value-added industries. However, developing countries often lack the finance, infrastructure, technology and human resources.
E-commerce is the backbone of the digital economy, which has and still is redefining traditional modes of distribution for industries such as banking, capital and securities markets, insurance and financial services, transport, advertising, telemedicine, etc. E-commerce is creating new business models as the entire value chain of a business is conducted electronically. Thus, e-commerce knows no geographic boundaries; thereby challenging old paradigms; and indeed e-commerce issues will, no doubt, keep nation states and the WTO busy, for a while yet.
In the context of the above and the challenges of bridging the digital divide, the following areas become important:
1. The benefits and the social costs of increasing globalisation;
2. The rapid growth of technology;
3. The building of effective institutions;
4. Addressing the development gap, both within countries and between countries;
5. Accessing capital at reasonable rates;
6. Developing human resources;
7. Accessing technology on reasonable terms.
It is in this regard that the convergence of technologies, that we are here to discuss, also affects not only the ways in which markets are structured, but also the alignment and alliances of companies in ICT, broadcasting and general media services. These developments have implications for both infrastructure and content and the rapid pace of change means that policies need to be responsive to the various changes in the ICT, multimedia and postal sectors.
Thus policy-making also becomes a more dynamic process that must take into account liberalisation, cross-border flows of investments, competition and the extension of universal service, among other factors.
In bridging the digital divide through the utilisation of the new technologies and expedited by convergence, our perspective on information and communications technology should be to continue to promote universal service, to ensure access for disadvantaged people and ensure that they participate as active producers in the information society, not merely as passive recipients of an imported and distant content.
Information networks and services play a fundamental role in the functioning and growth of modern economies and societies. The role of ICT is critical: from the Internet in education and health to emergency services to social services, from small business to trans-national corporations, from local to central government, and for every individual in their social and employment contacts. Our preparation and presentations for the World Summit on Information Society to be held in Geneva in December this year must be informed by the directions we take with regard to convergence.
Our governments must achieve their goal and objectives through promoting the interests of their people through the encouragement of effective competition, ensuring that social obligations are met and that services are matched with commitments to sustainability, resilience and protection of users.
The ICT sector in particular in South Africa has witnessed an accelerated growth of data communication. In addition, the rate of connections of mobile subscribers has surpassed that for fixed line services. Internet telephony, mobile Internet and the growth of 'hand-held' terminals will affect ICT policy as will wireless communications (and the related protocols) as well as the overall supply of new technologies.
The above factors have placed significant pressure on information, education and entertainment. Policies will need to take into account the modernisation and development of ICT, increased market and trading access, liberalisation and the promotion of competition.
We are conscious of the need to modernise the ICT sector. In the drive towards a fair and technically aware society enabled by access to ICT services, our policies and strategies on technology become important. In addition, we must also consider the particularities of our own situation, determine the priorities, review the policy options available, ensure comprehensive debate and develop suitable policies in a range of areas.
On the economic front, the rapid pace of technological advancement and financial innovation has introduced new, highly complex elements of risk, increased the speed and volatility of the markets, and blurred the barriers between previously distinct sectors of the financial marketplace.
Effective regulation is more important than ever to maintaining financial stability, both locally and globally. To remain effective and relevant, regulators must understand how and to what extent the 'wired' economy and other technologies are changing society. At the same time, we must take care that our efforts to ensure the safe and sound operation of the economies do not stifle the innovation and creative energy that is changing society indeed, the world for the better.
In South Africa, linking information and communications technologies, multimedia and postal services with our development means identifying how and how quickly ICTs can be utilised to most effectively address national priorities.
The past seven years have witnessed a phenomenal increase in the number of people doing business over the Internet. As indeed, I have already mentioned that we have seen a phenomenal growth in the use of mobile communications, with the South African market among the fastest growing GSM markets in the world and with mobile phone operators having a combined subscriber base of more than 13 million.
E-commerce and digitisation have brought innovative ideas to society and created new legal challenges. In the physical world today, there are requirements for documents to be in writing and for the recognition of hand-written signatures. Such requirements will need to be translated into the electronic realm. For transactions occurring over an electronic network, there is a need for reliable methods to authenticate a person's identity and to ensure the integrity of the electronically transmitted documents.
In the postal sector, we have had to rethink the fact that mail is a basic letter since there has been a movement to email, Internet and SMS that fulfil a similar function to the written and posted letter. We have an extensive postal infrastructure that we believe can play a major role in the convergence environment. I hope that such issues will come up when the future of this sector's role is discussed.
This is also important because we need to take cognisance that convergence ought not to further divide us, but should bring us closer together. Our post offices become places where communities who have been previously marginalised from ICT congregate, learn about the new technologies and record their own histories through these new forms of communication. We must use these sites so that these communities, especially those in rural areas, can enter the information highway and flourish.
The Telecommunications Act provides for the licensing of operators along the following services:
1. Fixed,
2. Mobile,
3. Fixed-mobile,
4. Mobile-cellular,
5. Local,
6. National long-distance,
7. International,
8. Value-added Network Services and
9. Radio Frequency Spectrum.
The appropriateness of the above needs will have to be reconsidered in the light of convergence and technological trends. As indeed the Acts of other sectors now related through convergence, ought to be looked at. The Convergence Bill is a priority that we will focus on over the coming period.
As part of its work, government will consider further the circumstances in which telecommunications policy, broadcasting and postal, are to be changed. This work would also have to consider the basis on which to resolve tensions between policy principles and how these will be applied in the light of market developments.
The empowerment of historically disadvantaged people within these sectors is an important development objective. Decisive empowerment policies will underscore South Africa's vision of using the information infrastructure to develop people and promote economic advancement. This will also contribute towards achieving government's stated intention of actively participating in the development of the global information society.
Notwithstanding the technological changes, the roles of regulators remain pivotal. Now we need to add to the regulators' current concerns new technological ones. Licensing in Telecoms, Broadcasting, as well as in IT, Computing and in Postal needs to be looked at.
Regulators must understand how and to what extent the 'wired' economy and other technologies are changing sectors. Regulators will have to be strengthened to ensure that there is proper competition and no anti-competitive behaviour. We need to ensure that we meet our national objectives like job creation, human resource development, universal access and bridging the digital divide. At the same time, we must take care that our efforts to regulate ensure that we do not stifle innovation and creative energy and that we do allow for the growth of these sectors.
We have had a vertically-integrated marketing structure. Should we not now move into a more horizontally integrated structure? We will need to change the licensing environment in light of the convergence of services and technologies.
The Way Forward
There are many other challenges pertaining to formulation of telecommunications, broadcasting, multimedia and postal policy, which we must surely address. These are too numerous to detail. For brevity, and in closing, I would like to mention the strengthening of regional and continental bodies, improving communications channels among SADC and other African countries in particular; encouraging public-private partnerships; developing our human resources; fostering research & development and creating an environment of sustainable investment.
I would like to use this opportunity to inform you that I have accepted the nominations presented to me by the Selection Panel for the Board of the ZA Domain Name Authority. This body will play a pivotal role in protecting South Africa's interest in this modern world, so that we are more equipped to meet the challenges of our times.
I certainly hope that the discussions at this Convergence Colloquium will bear fruit and that we will move smoothly into the reality of converged technology and a more integrated, equitable and sustainable world.
I thank you.
Issued by Ministry of Communications
15 July 2003
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