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Date : 06/06/2005
Source: Department of Communications
Title: Padayachie: Universal Service Agency Seminar on Under-Serviced Area Licences


    Address by the honourable Deputy Minister of Communications, Mr Radhakrishna Padayachie (Roy), at the Universal Service Agency’s 2005 Seminar on Under-Serviced Area Licences

Chairperson
Chairperson of the Portfolio Committee on Communications
ICASA Chairperson, Mr Mandla Langa
Dr Henry Chasia, of the E. Africa Commission
Mr Brian Michel of the National Telephone Co-operation Association
Dr Sam Gulube, CEO USA
The Director-General, Department of Communications Ms Lyndall Shope-Mafole
Members of the USAL’s Forum
Community Leaders
Ladies and Gentlemen
I am pleased to have been invited to participate in this very important occasion – the Universal Service Agency’s Seminar on the Under-Serviced Area Licences (USALs). It is the ideal platform for us to come together, to evaluate the work that has been done so far, to share ideas and experiences and rededicate ourselves to the twin challenges that face us - to become part of the world information society and especially important to bridge the digital divide.

In April and May this year, a number of my colleagues in Cabinet and I, undertook Imbizo Week visits to the Northern Cape, the North West Province and KwaZulu-Natal. Throughout my interaction with the people, especially the youth, I was struck by the thirst and hunger communities have, particularly those in the outlying parts of the country about Information Technology. They also asked probing questions about reasonable and affordable access to telecommunications.

The issue of universal service and access is an intensely important one. Hence, we need to strengthen our effort to bridge the digital and knowledge divide and develop the Information Society in South Africa. We must continue our efforts to address the massive imbalances which are a result of the reality of apartheid. As a country we are now at a point in our transformation and development where we must use technology to leapfrog our societies into the global information age and improve the quality of life of all our people.

We, as Government, fully support the view that everything must be done to establish and develop an information society in the under-serviced areas. This involves not only the dissemination of information and knowledge to the under-serviced areas but also building capacity for the utilisation of information and communication technology by the under-serviced areas, as well as providing an enabling environment, developing skills and creating growth and expansion.

We are gathered here today to make a very deep and thorough assessment of how best we can support the Universal Service Agency (USA) not only in building capacity in the under-serviced areas but also to deal with the challenge to cascade to all communities, to all individuals an appreciation of the benefits of information and communications technology (ICTs). This is not only for the personal development of our people, but it is also so that they may appreciate technology as a tool for economic development.

The National Policy goal for the USALs was to empower rural communities particularly to participate in the second economy and within the global village. The other important aspect of the policy is the empowerment of women. The granting of these licences is an opportunity for them to come in as owners, and in this way we attempt to address the imbalances of the past.

We are here also to look at defining processes that will give more opportunities for players to provide services to an under-serviced market which we all know has a substantial growth potential. I do believe that while we are here, we need to visit again the ITU policies and strategies and evaluate whether the common definition of universal service still applies. The measurement then was 30 min. walking distance to a phone. We have made substantial progress in this regard.

What then is our measure today?

This is the reason why the theme of this seminar, “Creating a conducive environment for the under-serviced areas” is so important. Let us reflect for a moment, on what we mean by a conducive environment for Under-Serviced Areas.

The biggest challenge we faced very early in the life of our democracy was how to finance the infrastructure investment that was needed to enable South Africa to realise its goal of achieving universal access and service to assist the competitiveness of the economy. What we have already done is to embark on building telecentres that work closely with community organisations, libraries, schools. We have cyberlabs to deliver e-Education. The telecentres are already providing communities with a wide range of services from telephone, to internet access and a wide range of Government and business services. We have introduced the granting of licences to under-serviced areas and to date we have issued 6 of these USALS in different provinces.

Tomorrow we will be celebrating the issue of the Capricorn USAL in Limpopo. The Limpopo Province is justifiably proud, since it is envisaged that four licences in all will be issued in this Province. It is the intention of the Department to complete this process so that as many of our people can be empowered. Indeed much has been done and much more still has to be done.

The development of our human resources was one other challenge we identified. This has had the impact that we develop training and skills training initiatives which are a pre-requisite for the competitiveness of any economy in today’s increasingly globalised world. Without underplaying other noteworthy training initiatives in the sector, I want to highlight our latest initiative, the launching of the Meraka Institute, the African Advanced Institute of Information and Communication Technologies.

We know, that meeting all the above challenges will bring benefits of synergy, improved communications, expand trade and revitalise growth. We also know, that in order to succeed and implement these mammoth tasks, goals and national objectives it would be necessary to carefully strengthen the foundation that would form the basis of our future growth and development. Thankfully this is why we are here, to look at the future.

This process of introspection will be followed by an evaluation and later perhaps, a realignment of policies based on our predetermined socio-economic development criteria and our awareness of the significant value of communication. I am happy to say that our present policies have focused on the creation of a climate of sustainable investment equal access and affordability. We must remember also that policy is a highly dynamic field for it must help us meet our challenges if we are to be a successful nation in this global environment. May I take the opportunity to suggest that we look again at the present definition of teledensity and universal service so that we take into consideration the remarkable strides we have made and come up with a definition that meets our criteria.

In 1996, the Universal Services Agency was established as one of Government’s implementing arms to address specifically imbalances in access to telecommunication services. Today the USA is nine years old and it has steadily kept its goal within focus.

The organisation has concentrated on reducing the disparity between the urban and rural areas of our country. It has been steadily clipping away at the inequalities of our society inherited from the apartheid era. In doing so, is working and it is still working at increasing teledensity and growing the ICT sector.

The process of the managed liberalisation has been most beneficial in assisting us achieve this process of growth.

We need to further accelerate growth in the sector. We need to reduce the cost of telecommunications in the country. We need to facilitate the growth of the second economy. And so we had the February announcements by the Minister that further liberalised the sector and lead to growth. As part of all this growth, our expectation is that Mobile Cellular operators will be in a position to bring down costs now that they are no longer just reliant on Telkom for their fixed lines.

This envisaged growth will mean that we help promote small, medium and micro enterprises (SMMEs) in the sector and promote job creation, because anyone of us now, can apply for a licence to provide public pay phone services. Technological developments are such that there is no longer any difference in the transmission of voice, video and data. Therefore it is no longer necessary to prohibit the provision of voice by VANS. This provision will allow growth of the VANS sector and promote SMMEs in much the same way as will the choice that is now inherent in the provision of Value Added Network Services.

Our economy needs a skilled and informed work force that is equipped to meet the demands of the information society and knowledge economy. Access to ICTs is critical for it enriches the learning environment and it increases the potential of our young people to find gainful employment in this new age of technology.

I would like to take this opportunity to congratulate Dr. Gulube and the Universal Service Agency for convening this gathering. The Agency is a very important part of the machinery for Government delivery; and so it is most essential that we continue to meet, to debate and dialogue the needs of the information and communication industry and those of its beneficiaries.

I am convinced that this seminar will provide yet another, excellent opportunity for all stakeholders to get a better understanding of the demands of a successful implementation of communication and information technologies in the under serviced areas. This seminar will also provide us with the ways in which this change needs to take place.

Thank you.

Issued by: Department of Communications 6 June 2005

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